There are several aspiring entrepreneurs who want to invest their money somewhere but do not know which industry is the best to put their money that would offer them maximum returns. The food industry over the years, has grown remarkably and has been expanding at an astounding speed.
Globally, the food delivery market accounts for €83 billion, which is 1 percent of the total food market and around 4 percent of food sold through restaurants and fast food outlets. The food industry has matured in most countries, with an overall annual growth rate estimated at 3.5 percent for the next five years.
By far, the most common form of delivery is the traditional model, in which the consumer places an order with the local restaurant over the phone and waits for the restaurant to bring the food to the door. This traditional category has a 90 percent market share, and most of those orders—almost three-quarters—are still placed by phone.
However, as in so many other sectors, the rise of digital technology is reshaping the market. Consumers are getting accustomed to shopping online through apps and websites which offer maximum convenience and transparency. The same can be said when it comes to ordering dinner.
In this blog, we are not just preaching that entrepreneurs should invest in an online food delivery marketplace. We are providing facts and figures which will show the huge demand and opportunities for entrepreneurs in the online food delivery sector.
When every offline business is stepping in the online world, the food-delivery market is in the middle of a huge channel migration. Online delivery is expected to grow by 25 percent every year from 2015 to 2018 across prominent countries.
In the year 2015, there was a huge debate on whether hyper local businesses will be able to shift to online businesses. One sector which grabbed maximum attention was the food industry. The reasons were that it is expected to see revenue of $78 billion by 2018, which will subsequently grow 16 percent. This sector has always shown high demand and looks promising for higher returns. Now the sector is overflowed with “Me-too startups” which are lacking both differentiation and innovation, there is a huge demand for out of the box startups that entices the customers with its features.
The above-mentioned stats make it evident that there is a huge potential in the food industry. While the restaurant delivery segment is expected to see substantial growth in 2021, the online takeaway segment is expected to see a revenue growth of more than 200%. We have defined every major country where the food industry is expected to see a growth. This blog will help an entrepreneur take the final decision which country to invest their revenue.
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