The global food delivery industry, which has become a lucrative opportunity for major companies in the past decade, is expected to bring $323 billion in revenue in 2022, according to a report.
Therefore it’s not surprising that major international brands such as Uber, Tencent, and Alibaba have invested in the food delivery industry in recent years, said the report from SafeBettingSites.com.
To grow by 9pc In 2022
Like other-internet based industries, the food delivery industry is also expected to witness a post-pandemic lull in growth. According to the data available on Statista, the food delivery industry is expected to bring in $323 billion in 2022. This figure represents a 9% increase of $296 billion earned in 2021.
Due to the pandemic, the food delivery industry witnessed incredible growth in 2020 and 2021. In 2020, the sector grew by almost half as the total revenue increased by 47.8%. The following year, the annual growth dipped to 27.6%, but nonetheless, it was an impressive figure.
The annual growth rate is expected to decline further to 9% in 2022. In the coming years, the growth rate will continue to slide down. Regardless, by 2027, the food delivery industry is expected to be worth $466 billion in annual revenue.
When one looks at revenue distribution, one notices that the share of platform-to-consumer delivery has consistently increased. As major delivery platforms continue to exert greater control over the delivery industry, the platform-to-consumer share is only expected to grow.
In 2017, platform-to-consumer delivery contributed 59% of the total revenue. In 2022, the share of platform-to-consumer revenue is expected to have increased to 64.4%. By 2027, the platform-to-consumer delivery method would account for more than 65%
China to contribute 45pc by 2027
China is the most significant source of revenue in the food delivery industry. According to estimates, the Chinese food delivery industry will be worth $208 billion in 2027. This figure would account for 45% of the total revenue.
Interestingly, the platform-to-consumer model dominates the Chinese food delivery industry, with Alibaba-backed Ele.me and Tencent-backed Meituan currently controlling the industry.
The US is in the distant second spot. The US is expected to bring in $97 billion in annual revenue by 2027. The share of the platform-to-consumer model in the US is not as significant as in China. DoorDash and UberEats are the most prominent food delivery platforms in the US.-- TradeArabia News Service