Global market for delivery, takeaway food to grow 3% through 2020
Technavio’s (technavio.com) market research analysts predict the global market for delivery and takeaway food to grow at a CAGR of around 3% between 2016 and 2020. The growth of this market is augmented by the rising number of strategic alliances among takeaway restaurants. Such alliances help these restaurants in increasing the average number of orders and give them a platform to manage their orders more efficiently. Online orders are more efficient than telephone orders as they eliminate communication errors. During 2015, the global delivery and takeaway food market was dominated by the Americas with a market share of more than 37%. The market in this region is expected to showcase steady growth over the forecast period owing to fast-paced lifestyles, the growing demand for customization in the food menu, and the rising consumer preference for delivery and takeaway food.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Fast food joints are increasingly incorporating nutritious meals in their menus to attract more customers. Consumers prefer other nutritious food restaurants over fast food while ordering online or for takeaway. This makes fast food operators lose their market share, and if this continues over a period of time, fast food restaurants will be left behind in the competition. Many QSRs now serve half or full size salads containing fruits and fresh vegetables,” says Manjunath J, lead analyst, Food & Beverages, Technavio Research.
The key priority for food portals is to boost online ordering by improving selection, convenience, transparency, and security. As the number of online orders continue to increase, social media will play a key role in the purchase decisions of consumers. Takeaway restaurants and food aggregator portals will use social media platforms to connect with customers and gain from their experiences and feedback. This will help in gathering new service ideas, understanding trends, tracking brand and food reviews, and launching marketing campaigns.
Market players often indulge in price wars by offering promotional offers or simply cutting down their product prices to sustain their existing position in the market. Such price wars can negatively affect the company's profit margins and consequently, the overall market growth. Some companies also have larger financial resources than other companies. Therefore, to survive and succeed in a stiff competitive environment, it becomes imperative for companies to distinguish their product and service offerings through a clear and unique value proposition.