The food delivery market has become explosive.
“Nowadays, food delivery has become a global market worth more than $150 billion, having more than tripled since 2017. In the United States, the market has more than doubled during the pandemic, following healthy historical growth of 8 percent,” says McKinsey & Company.
Even with restaurants reopening, and consumers crowding food stores, more Americans are ordering groceries online, according to Gallup.
“The percentage of U.S. adults who now say they order groceries online for pickup or delivery at least monthly has doubled, from 11% in 2019 to 23% today. This includes 3% who do so more than once a week, 9% weekly, and 11% once or twice a month,” says the firm.
Also, the number of Americans dining out is dropping, too.
At the moment, about 74% of Americans say they eat at a restaurant at least once a month, as compared to 87% in 2019. “The greatest decrease is in the percentage who say they eat out more than once a week, which has declined seven points to 17%.”
The last time we spoke about food delivery on August 19, we highlighted opportunity in:
- Uber Technologies (UBER), which has since run from $40 to $46
- Grubhub (GRUB), which has since fallen from about $18 to $14.56
- DoorDash (DASH), which ran from $180 to $200
- Blue Apron Holdings (APRN), which ran from $3.70 to $8.03
- Waitr Holdings (WTRH), which fell from $1.19 to 83 cents
All could perform much better as the food delivery boom heats up. In fact, with millions of people ordering takeout far more frequently, the sector could balloon to a $400 billion valuation by 2024. According to Euromonitor, it could surge to $1 trillion over the next decade.