Market Overview

The India online food delivery market size, valued at USD 48.07 billion in 2024, has seen substantial growth, offering access to a diverse range of cuisines and dining options. The market is expected to grow at a compound annual growth rate (CAGR) of 27.30% from 2025 to 2034, potentially reaching USD 537.23 billion by 2034, as delivery platforms adopt eco-friendly packaging and sustainable practices to appeal to environmentally conscious consumers.

Market Trends

One of the key trends driving the online food delivery market in India is the increasing demand for quick commerce. Customers are seeking faster delivery times, prompting platforms to optimize logistics and leverage dark kitchens. Additionally, the rise of AI-powered personalization is enhancing user experience by recommending dishes based on past orders and preferences. Subscription-based meal plans are also gaining traction, offering users cost savings and convenience. Another emerging trend is the integration of regional and home-cooked meal options, catering to a growing audience looking for healthier and traditional food choices.

Another significant trend is the adoption of cloud kitchens, which operate without dine-in facilities and focus solely on fulfilling online food orders. These kitchens are reducing operational costs and increasing efficiency, allowing brands to expand without the need for physical restaurants. Food delivery platforms are also collaborating with local businesses and grocery stores to provide a wider range of options, further solidifying their market presence. Moreover, the emphasis on sustainability is leading to innovations in biodegradable packaging and waste reduction strategies.

Market Growth

The India online food delivery market is witnessing rapid expansion due to the increasing penetration of smartphones and affordable internet access. With digital payment solutions becoming more widespread, customers find it easier and more convenient to place orders online. Government initiatives promoting cashless transactions and digital infrastructure are further accelerating this growth. Additionally, the rise of working professionals and nuclear families in urban areas is contributing to the high demand for food delivery services.

The expansion of food delivery services beyond metro cities into tier-2 and tier-3 cities is also driving market growth. These regions, previously underserved, are now experiencing an influx of delivery platforms aiming to capture new customers. Furthermore, international QSR chains and local restaurants are increasingly partnering with delivery platforms to expand their reach, ensuring that consumers have access to a broader variety of cuisines. The growing influence of social media marketing and app-based discount offers is also playing a crucial role in attracting more customers to online food delivery services.

Segmentation

By Cuisine

Indian

Indian cuisine remains the most preferred choice among consumers, with high demand for traditional meals, regional specialties, and street food-inspired dishes.

Chinese

Chinese food is widely popular, particularly for quick-service restaurants (QSRs) and takeaway options, with noodles, fried rice, and Manchurian being top choices.

Italian

Italian cuisine, primarily pizzas and pasta, continues to grow in demand, driven by the presence of international QSR chains and premium dining experiences.

Others

The "Others" category includes continental, Japanese, Thai, and healthy meal options, catering to niche dietary preferences and emerging food trends.

By Platform

Website

Websites are commonly used by corporate clients and bulk order consumers, offering a more detailed browsing experience and additional order customization options.

Mobile Application

Mobile applications dominate the online food delivery market due to their user-friendly interface, AI-driven recommendations, app-exclusive discounts, and push notifications for promotions.

By Delivery Type

Restaurant-to-Consumer Delivery

This model involves restaurants handling their own deliveries using in-house logistics, providing greater control over the customer experience and food quality.

Platform-to-Consumer Delivery

Under this model, food delivery aggregators such as Zomato and Swiggy manage deliveries through independent logistics networks, ensuring a wider reach and quicker delivery times.

By Payment Method

Online

Online payments, including UPI, net banking, and digital wallets, are growing rapidly due to their convenience, security, and government-driven digital payment initiatives.

Cash on Delivery

Cash on Delivery (COD) remains a preferred option in semi-urban and rural areas, though its share is gradually declining as digital transactions gain traction.

Regional Analysis

• North India – Leading market with strong demand in metro cities like Delhi, Chandigarh, and Jaipur. The region has seen significant investments in last-mile delivery networks, ensuring faster and more reliable services.
• South India – Fast-growing region with high penetration in Bengaluru, Hyderabad, and Chennai. The region is also home to a tech-savvy consumer base that prefers app-based ordering and digital payments.
• West India – Significant market share in Mumbai, Pune, and Ahmedabad, driven by the presence of corporate hubs. The market here is characterized by a high concentration of quick-service restaurants (QSRs) and premium dining options available for delivery.
• East India – Emerging market with increasing adoption in cities like Kolkata, Bhubaneswar, and Guwahati. The region is seeing increased expansion of delivery services, catering to local cuisine preferences and rising disposable incomes.

Competitive Landscape

• Zomato Limited
• Bundl Technologies Pvt Ltd (Swiggy)
• Foodvista India Private Limited (FreshMenu)
• Jubilant FoodWorks Ltd.
• Yum! Brands, Inc.
• Plaza Restaurants Private Limited
• Curefoods India Private Limited
• Rebel Foods
• Sky Gate Hospitality Pvt Ltd
• Poncho Hospitality Pvt. Ltd.
• Others