Over the past few years, there has been a rapid change in the online food delivery industry, and research has it that the industry will still experience exceptional growth in coming years. More and more people seem to be welcoming the idea of getting food delivered to their homes without too much of a hassle. Recent research done in the U.S shows that up to 82 percent of orders for food deliveries were placed from homes, while 16 percent were from workplaces.
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Studies show that the meal delivery market is now worth over $30 billion and there is a chance for the market to grow 100% over the next few years. New restaurants are now racing to set up online shops in a bid to capture the ever-growing markets and consumers across Asia, the Americas, Middle East, and Europe.
As the competition grows, new players in the meal delivery industry are incorporating new features into the industry. For instance, the market has seen technological improvements with investors allowing customers to compare and order meals from a variety of restaurants using a single mobile application or a website.
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The technological and socio-economic trends that experts predict will steer the meal delivery industry.
Technology will still play a significant role in the meal delivery industry
Nowadays technology is the driving force of almost every industry. With the modern consumers becoming almost dependent on technology, and given the fierce completion that is already present in the food delivery market, players will be looking to take advantage of technology to win over customers and accommodate their expectations. Restaurant owners are going to invest in new and creative ways using technology to better their business.
Already, the market is experiencing the creative use of technology. A recent study shows that over the past few months, the percentage of meal orders placed through websites and mobile applications exceeded those placed verbally through telephones (6.6% against 5% of the total orders).
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There will be more apps for handheld devices that will make food ordering and delivery more comfortable.
Also, there have been other transformations in the meal delivery industry as seen in the development of Domino’s branded robot (the “DRU”), an autonomous meal delivery robotic vehicle. More of such inventions are expected to be introduced into the market by various brands.
There will be an exceptional growth of the food delivery market
A study done by analysts from the Morgan Stanley U.S restaurant indicates that the food delivery industry has the potential to grow seven times more than its value currently. Another study by McKinsey predicts that the online penetration of the food delivery market will rise and reach up to 65 percent, up from 30 percent two years ago.
Restaurant owners are positioning their services through the acquisition of new food players like Meal-kit delivery startups and chef-made meals. Such mergers indicate how this industry is empowering the online space. New niches are being introduced, and the number of delivery companies setting up shop is increasing by the day.
The number of customers placing online orders is expected to increase
There will be consumers ordering meals online and more frequently than ever. According to a report from CGA Peach, over the last six months, over half of the British consumers prefer to have meals delivered at their doorsteps, which is about 28.6 million people. The statistics also show that one in every five Brits gets food delivered to them at least weakly, and two in every five get one delivery at least every month.
Studies also reveal that consumers that are completely dependent on delivery services have increased significantly. One of the factors that have made this possible is the availability of apps for hand-held devices that have improved the convenience or ordering and delivery of food.
Millennials will contribute a lot to the food industry
The U.S National Restaurant Association says that the future of online meal delivery industry largely depends on the Millennials. The association predicts that by 2020, up to 70 percent of the consumers looking for meals solutions in online stores will be Millenials aged between 21-36 years. This partly because Millenials have more digital expectations than any other group of people.
The common food delivery models will experience more variations
Naturally, after a new trend appears on the scene, others also tend to get into action. There has been dramatic competition in the meal delivery market with such companies as Hungary House, Deliveroo, Hello Fresh, and Just Eat competing aggressively. This year and in the next years, this competition is expected to become even more aggressive and dramatic. This will most likely lead to the introduction of new niches in the industry.
There will be a fierce competition between In-house and Third-party delivery
Third-party delivery services have been on the rise over the last few years with companies like Deliveroo and Uber getting into the business. This has significantly disrupted the online food delivery industry. These days, however, the number of full-service restaurants has risen substantially, somewhat decreasing the popularity of the third-party delivery services. In a bid to reduce their reliance on third-party services, restaurant owners have invested in in-house delivery services. This is expected to create a fierce competition this year and in the next years.
Various effective brands will harness data and also prioritize User Experience (UX)
To achieve longevity in the delivery market, various most effective brands will want to harness data that will be at their disposal and champion UX. Experts predict that the players that will make this data-driven driven decision are likely to improve their business.
More Artificial Intelligence (AI) solutions and delivery droids will be tested and used
In a bid to streamline the food ordering and delivery processes, restaurant and food joint owners will use AI solutions and other automation strategies. More delivery droids are also expected in the scene. Major players in the food delivery industry are more likely to test and use these automation strategies. They will simplify and improve the ordering and delivery processes.
Why the food delivery industry is getting popular
Based on the trends above, you notice that the food delivery industry is getting popular, and this is not stopping anytime soon. Why is this the case? Why is this industry so popular and destined to grow even more? Here is why;
People like convenience, and nowadays, many individuals consider meal-planning, going to shop for grocery, and cooking as chores. This is especially true for overweight people who want to lose weight using prepared weight loss meals delivered to their home. Should there be a service that can free them up from having to do these tasks, it will receive high organic demand.
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You will also notice that these days, people are getting busier than before. Therefore, being able to get some free time from such chores and use it for some more enjoyable or productive activity is always a good thing.
Again, most people place a lot of value on the ability to get back some attention and time (which is, in fact, a vital currency of the 21st century). Food delivery services give this to people. It offers convenient options, and always, convenience wins.