The Food Delivery market in the world
The Food Delivery Market both online and offline is projected to reach $347.30 billion in 2023(Statista), of which $222.50 billion from online orders alone with an annual growth rate (CAGR 2023-2027) of 6.71% and projected market volume of $450.30 billion by 2027.
The number of users is projected to reach 2,644.2 million by 2027, with penetration to be 27.4% in 2023 and expected to reach 33.3% by 2027.
In global comparison, most of the revenue will be generated in China ($151,800 million in 2023).
In 2023, the trends that will drive the food delivery sector are:
-
Use of delivery management technology as a must-have
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Further consolidation of food delivery platforms
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Growth of deliveries managed with internal riders
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Data analysis as an essential resource for customer loyalty
+6,95%
CAGR
PLATFORM-TO-CONSUMER
(2023-2027)
215
Billion € turnover
PLATFORM-TO-CONSUMER 2022
(Grand View Research)
The impressive growth of the Italian market
The “Food & Grocery” segment continues to record an above-average growth rate, reaching a value of 4.8 billion euros in 2022 (+17% compared to 2021).
According to the e-Commerce Observatory of the Politecnico di Milano, the value of product B2C e-commerce in 2022 in Italy corresponds to 34 billion euros (+10% compared to 2021), bringing the incidence of online consumption to totals from 10% in 2021 to 11% in 2022.
1,5MLD€
+59% vs 2021
VALORE FOOD DELIVERY
20MLN
ITALIANI CHE ORDINANO A DOMICILIO
11% CAGR
PREVISTO PER IL 2028
Together with the delivery platforms, the "hybrid" delivery model is growing
Choosing to rely on platforms as a marketplace to receive orders but deciding to carry out deliveries independently using restaurant delivery riders is the new model increasingly establishing itself in the delivery market, including Italian restaurants.
Many restaurants are enhancing their internal delivery service, but choosing to receive orders both through JustEat, Deliveroo, Glovo e UberEats, to mention the most important in Europe, and from internal channels that allow home orders to be acquired via telephone contact, email, or the local e-commerce site.
Choosing to manage deliveries internally allows the restaurant to reduce delivery costs, maximizing the final result. This new trend shifts the attention of restaurateurs from order management to the management of delivery logistics, which are increasingly complex to organize.
MORE THAN
80.000
RESTAURANTS IN ITALY DOING DELIVERY
(ESTIMATE BASED ON FIPE REPORT 2021)
The importance of process management from order arrival to delivery
The advantages associated with choosing to make deliveries through internal resources are also represented by the possibility of having a more control over the service: for example, it will be possible to verify how it is carried out (from the qualitative point of view as regards the relationship with the customer), if the delivery times are respected and avoid annoying delays or errors in delivery.
For a restaurant, having a well-finished brand means taking care of every aspect in detail, making the most of all the steps of the process, including the means used for deliveries and the containers chosen, with ever greater attention to the sustainability of the packaging. The topic is even more crucial when it comes to coordinating the delivery staff, always remembering that the delivery man is the first business card when it comes to home delivery.
In this photo we see a delivery management screen, a feature included in the Deliverart management system
Hyperlocal, Super Apps, Sustainability:how Food Delivery is redefining food service and catering
The enhancement of the “hyperlocal” dimension is rewriting the rules of the food delivery game. But what does it mean?
A hyperlocal business is a business that is within a very short range of the customer, at a neighborhood or even street level, a trusted pizzeria for example. It is usually chosen with care, knowing that it will always be able to deliver the goods at the right temperature because it is not far from the customer’s order.
What does hyperlocal business need to stay competitive?
E-commerce businesses depend on the ability to deliver products and services quickly. A good service results from good process management, platform reliability, and a well-structured delivery service.
3.7MLD$
IN 2028
DELIVERY MANAGEMENT SOFTWARE MARKET (Verified Market Research®)
In the case of delivery, this topic is even more valid because it is based on contingency and very dynamic and fast timing. The market of home delivery management in fact, this year will experience a moment of great expansion: the Small Business digitalization in fact, it will be the perfect example of how the technological progress introduced by management systems and order aggregators can integrate with traditional purchasing methods and create a unique formula for success.
The market size of Delivery Management Software was valued at $1,611.30 million in 2020 and is projected to reach $3,729.46 million by 2028, growing at a CAGR of 10.82% from 2021 to 2028.
What is a Food Delivery Superapp
The superapp is a platform where you can access from a single screen to a series of services, all within a single application. Within a super app, the user can, for example, chat with other users, purchase goods or services, subscribe to subscriptions, register for events, and access mobility services without ever leaving the application.
In Food Delivery Management this is equivalent to managing the various home delivery processes in a single user experience, avoiding moving from one screen to another or worse by activating different subscriptions.
The importance of centralization vs fragmentation in delivery
In an increasingly fragmented market, the centralization of delivery activities represents the real competitive advantage in the hands of restaurateurs, who can thus simplify their work.
To date, the fragmentation of services leads to greater complexity and additional costs, which restaurateurs find themselves incurring to have the different software and subscriptions they need for order management, dispatching, and delivery. Centralization in a single platform, on the other hand, has the benefit of simplifying data management and consequently data analysis, allowing you to maximize your business. How?
Thanks to a super delivery app that aggregates all sources of order reception, restaurateurs can receive and manage digital orders centrally, avoiding the need to use different software and subscriptions. Furthermore, the platform allows you to automate the dispatching of orders to couriers, simplifying kitchen management work and providing data that is always up-to-date and quick to consult. Finally, centralization makes it possible to integrate all the menus present in the various marketplaces into a single platform, further simplifying the management of one’s offer to customers.
The Sustainable Development Goals of Delivery
REDUCE STRESS IN LABOR INTENSIVE OPERATIONS
ENHANCING TOOLS TO SUPPORT INNOVATION
MODIFY AND IMPROVE THE PER CAPITA IMPACT ON CITIES
REDUCE WASTE AND CONTRIBUTE TO THE ADOPTION OF SUSTAINABLE MODELS
OPTIMIZE ROUTES TO REDUCE KM AND CO2 EMISSIONS
PROMOTE COLLABORATION BETWEEN DELIVERY OPERATORS
Because food delivery must become sustainable
The growth forecasts of the delivery market will have a direct impact on the environment and on sustainability.
In fact, home delivery leads to an increase in road traffic, CO2 emissions, energy and water consumption, and waste production. According to a recent study by Utrecht University, a home-delivered meal generates on average twice as much CO2 emissions as a home-cooked meal. Furthermore, deliveries are often made with polluting vehicles, such as mopeds.
Understanding how the food delivery industry creates and manages waste is the first step in being able to change results. In most cases, online food deliveries require single-use packaging. The production, transport and disposal of this packaging requires large amounts of energy and raw materials. These materials release emissions as they decompose in landfills or the environment or are burned. Research by ScienceDirect found that 27 million orders led to 5,600 tonnes of carbon dioxide equivalent (CO₂-e) emissions in 2018. If the sector grows by more than 15% each year, that means packaging emissions will reach 13,200 tonnes of CO₂-e in 2024 in Australia alone.
For this reason, sustainability must become a central theme for food delivery. Everyone can do their part. For example, delivery platforms can introduce sustainable logistics and delivery management practices, such as using electric bicycles or low-emission vehicles, and incentivize restaurants to use eco-friendly packaging and recyclable materials. Sustainability is not only essential for the environment, but it also represents a competitive advantage for food delivery platforms that want to differentiate themselves on the market and satisfy the needs of the most attentive consumers.
What can technology do to make delivery more sustainable?
In addition to reducing CO2 emissions, optimizing routes and reducing kilometers traveled are equally central from the point of view of making the delivery process more efficient. They reduce the operating costs of the delivery service, allowing multiple deliveries to be made in a single geographical area and thus avoiding unnecessary travel.
Furthermore, according to a report by the World Resources Institute, route optimization could reduce CO2 emissions by 25-30% per delivery, depending on the level of optimization achieved. From this point of view, software for managing delivery routes will be able to make an essential contribution to city traffic, making the delivery service more sustainable and competitive in the long term.
Sustainability, however, is not just attention to the environment
Sustainable is anything that has a positive and measurable impact on society and the people who make it up, including the economy and work. This is even more true if we talk about catering, where the skills required of the workforce are subject to high physical and mental stress.
Investing in tools that simplify restaurant business workflows is the real challenge for small and medium-sized companies because they will make a substantial contribution to creating a healthy and satisfying work environment and positively influencing productivity and quality of work.
According to a 2022 study by the Order of Psychologists of Lazio, among the most common symptoms by catering professionals, we highlight:
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SLEEP ISSUES 54,54%
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ANXIETY 40,54%
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SADNESS 38,73%
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SOCIAL ISOLATION 34,90%
Therefore, investing in work optimization would not only help improve the quality of life of employees but would also help achieve sustainable development goals.
Cristina Bowerman, president of the Italian Association of Taste Ambassadors and chef of the Glass Hostaria restaurant in Rome (La psicologia al servizio della ristorazione 2022)"Physical fatigue, concentration, widening the audience, and customer reviews, exhaust you deeply. One day you get up and realize you're burned"
The 3 challenges of 2023 for delivery
Digitization
Focus on innovations and new technologies to anticipate customer needs and offer a better and more economically sustainable service
Centralization
Adopt solutions that centralize services and help restaurants fight the excessive fragmentation of the technological offer present in the points of sale
Sustainability
Reduce waste, adopt sustainable models, promote healthy work and focus on partnerships that aim for a positive impact on the environment and society
Deliverart is the solution to centralize delivery management
Deliverart is an ecosystem of food delivery services that simplifies the management of orders and home deliveries. Aggregate and consolidate all restaurant delivery orders from phone, website, apps and delivery platforms in a single interface, manage orders automatically and create multi-delivery routes optimized for riders.
Through automation, we give restaurant managers back the time they normally spend coordinating repetitive operations that steal mental energy, making them more efficient and optimizing a more sustainable and healthy restaurant model.