Australia Food Delivery Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

Australia Food Delivery Market Trends

The growth of the Australia food delivery market is driven by the exceptional convenience of these services, which provide quick access to a wide variety of restaurants with just a few taps. Customers can select from a diverse range of cuisines, saving valuable time, especially for busy individuals. These services are available in both urban and suburban areas and offer contactless delivery, ensuring enhanced safety and hygiene. According to the Australian Taxation Office, the pizza foodservice market saw a 37% growth in 2021-22, spurred by an average sales cost exceeding USD 600,000.

The opportunities in the Australia food delivery market are further fuelled by regular promotions and discounts, encouraging more frequent orders. Customers enjoy flexible ordering times, with the option to order at any hour. Multiple payment methods, such as credit cards and mobile wallets, enhance convenience. Additionally, the ability to customise orders according to dietary preferences adds a personal touch to the service.

Australia Food Delivery Market Growth

The Australia food delivery market growth is driven by services that are increasingly accessible to individuals with mobility challenges, making it easier for them to enjoy meals. These platforms support local restaurants by expanding their reach and introducing customers to a variety of international cuisines. They also cater to special dietary needs, including vegan, gluten-free, and vegetarian options, while offering real-time order tracking to improve the customer experience.

Demand for the Australia food delivery market is rising due to loyalty programs that incentivise repeat customers, making the service more attractive. These platforms reduce the need for dining out, saving time and money, while promoting secure cashless transactions. They also support small restaurants and focus on eco-friendly practices. Australia wastes 7.6 million tonnes of food each year, while 3.3 million people, including 761,000 children, live below the poverty line. The new app, Too Good To Go, aims to reduce food waste by offering unsold food at discounted rates. Launched in Melbourne in August, the app has a goal to cut food waste in half by 2030.

Australia Food Delivery Market Insights

• In 2023, Australia’s fast food and takeaway services sector achieved a record revenue of USD 23 billion, marking an increase of USD 2.4 billion from the previous year, according to the Australian Bureau of Statistics. This growth highlights the rising demand for convenient, quick food options, further emphasising the expanding role of food delivery services in the market.
• Domino’s Pizza Enterprises Ltd remains Australia’s largest pizza chain, leading in both store count and sales. Industry reports indicate that Domino’s benefits from its vast delivery network and dominant market presence, with growing consumer demand for its delivery services significantly contributing to the sector’s rapid expansion.
• According to industry reports, brands such as KFC, Hungry Jack's, Pizza Hut, Zambrero, Guzman y Gomez, and Grill’d have collectively opened 184 new outlets across Australia. This expansion demonstrates the increasing demand for food delivery services, with these brands catering to consumer preferences for convenience, thus driving further growth in the Australian food delivery market.

Industry News

July 2024

Google Wing launched its quieter drone delivery service in Melbourne, marking its largest international expansion. The service allows around 250,000 residents in the city's eastern suburbs to order smaller items from Eastland Shopping Centre through the DoorDash app, enhancing delivery options for local consumers.

March 2022

Fantuan Delivery, a prominent Asian food delivery app, began operations in Australia, launching in Sydney and Melbourne. The service was initially available in CBD, Boxhill, and Eastwood, offering quick delivery and pickup through its app. To mark the launch, customers enjoyed discounts and promotions, with plans for swift expansion.

Australia Food Delivery Market Drivers

Growth of Online Food Delivery Platforms

The trend in the Australia food delivery market has been driven by the growth of online food delivery platforms. With the widespread use of smartphones and internet access, services like Uber Eats, Deliveroo, and Menulog have become crucial for busy individuals. These platforms offer convenience, diverse cuisines, and fast delivery, aligning with evolving consumer preferences. As more people turn to digital solutions, food delivery services are expanding their customer base and enhancing user experience through features such as order tracking, contactless delivery, and loyalty programs, fuelling ongoing growth in the Australian market. In March 2021, KFC Australia launched a white-label food delivery service through its app, offering free delivery for two weeks with the Tower Burger purchase. In partnership with DoorDash Drive, the service allowed customers to order and track meals directly through the app, providing exclusive deals. This added a more direct delivery option beyond platforms like Deliveroo and MenuLog.

Increased Demand for Health-Conscious and Sustainable Options

Health-conscious and environmentally aware consumers are significantly influencing the Australia food delivery market dynamics and trends. There is a growing demand for healthier meal options, such as plant-based, organic, and calorie-conscious dishes. In response, food delivery services are adapting by offering these alternatives and focusing on sustainable packaging, including biodegradable materials, and reducing food waste. Consumers are also prioritising transparency regarding ingredient sourcing, favouring locally sourced, organic, and eco-friendly options. This shift is leading food delivery platforms to collaborate with restaurants that align with these values, catering to the increased demand for sustainability in the food industry. According to the Department of Agriculture, Water, and the Environment, most organic food sales in 2022 occurred within Australia, with 60% sold to retailers and 58% sold directly to consumers.

Opportunities in the Australia Food Delivery Market

Artificial intelligence (AI) and machine learning are playing a significant role in boosting the growth of Australia’s food delivery market by enhancing the user experience. AI is utilised to personalise meal suggestions, predict customer preferences, and optimise delivery routes for faster service. AI-powered chatbots provide instant customer support, resolving queries efficiently. This technology-driven approach not only enhances convenience but also reduces wait times, improving service quality. As customer expectations evolve, food delivery platforms are leveraging AI to offer tailored experiences, which strengthens customer loyalty and satisfaction. In November 2024, Oliver’s launched Australia’s first conversational AI server, "Ollie," at its drive-thru, enabling customers to place orders using natural speech. In partnership with Sodaclick, Ollie offers a non-linear, unscripted interaction, providing a friendly, human-like conversation. The system, introduced at Pheasant’s Nest, aids customers with disabilities and provides detailed menu information.

Market Restraints

The Australia food delivery market faces several restraints. High delivery costs burden both consumers and restaurants, with delivery fees and commissions affecting affordability. Logistical challenges such as delays and traffic congestion impact delivery times and customer satisfaction. The market’s intense competition and saturation make it difficult for smaller players to thrive.

Regulatory issues, including concerns around labour laws, food safety, and tax policies, complicate operations for delivery platforms. Additionally, customer privacy and data security concerns are on the rise, with increasing cyber threats threatening consumer trust. These challenges can hinder market growth and efficiency, requiring platforms to address these issues to maintain competitiveness and protect both customer data and business interests.

Australia Food Delivery Industry Segmentation

“Australia Food Delivery Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Delivery Model

• Aggregators
• Full-stack Delivery Services
• Cloud Kitchens
• Marketplace and Logistics Providers

Market Breakup by Payment Method

• Cash on Delivery (COD)
• Online Payment Systems

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Food Delivery Market Share

Market Analysis by Delivery Model

According to the Australia food delivery market analysis, aggregators like Uber Eats and Deliveroo dominate the sector by providing customers with access to a wide range of restaurants through a single platform. These services simplify ordering, offer real-time tracking, enhance restaurant visibility, and allow consumers to compare prices, creating a competitive market environment.

The growth of the Australia food delivery market is driven by full-stack delivery services such as DoorDash and Menulog, which handle both ordering and delivery. This end-to-end approach reduces logistical burdens for restaurants, offering customers faster, more reliable deliveries and improved tracking. These models also incorporate loyalty programs and promotions to encourage repeat business.

Cloud kitchens, which operate exclusively for delivery without a physical storefront, are boosting the demand for the Australia food delivery market. They help lower overheads for restaurant owners, adapt quickly to customer needs, reduce entry barriers for new businesses, and streamline delivery by focusing on efficient meal preparation and dispatch.

Further, opportunities are growing for marketplace and logistics providers, including third-party logistics firms, which manage supply chains and delivery operations. These providers optimise routes, ensure timely deliveries, and streamline processes for both restaurants and delivery platforms, enhancing customer experience, reducing costs, and expanding scalability.

Market Analysis by Payment Method

According to the Australia food delivery market report, online payment systems have played a pivotal role in enhancing the market by offering customers a convenient and secure method of payment. With options like credit/debit cards, mobile wallets, and bank transfers, these systems facilitate smooth transactions and faster order processing. They reduce the need for cash handling, streamlining operations for businesses and enhancing the overall customer experience. As of 2023, the Reserve Bank of Australia reported that daily non-cash payments amounted to approximately USD 300 billion, representing about 11% of the annual GDP. This highlights the growing reliance on digital payment methods in the economy, including food delivery.

Cash on Delivery (COD) remains a popular payment option in the Australia food delivery market, providing a reliable method for customers who are hesitant about online payments. This payment option fosters trust, especially among those without access to credit cards or online banking. Local food delivery services like Arrivederci Pizza offer COD, allowing customers to place orders via phone or online and pay the delivery driver in cash. This flexibility ensures that a broader customer base, including those without digital payment access, can still enjoy the convenience of food delivery while maintaining security and simplicity in transactions.

Australia Food Delivery Market Regional Insights

New South Wales Food Delivery Market Overview

The food delivery market in New South Wales benefits from a large and diverse population, coupled with a high demand for convenience. The increasing use of smartphones and online platforms, alongside a variety of available cuisines, drives market growth. The New South Wales Food Authority has proposed updates to its food regulations to improve food safety standards. The draft Food Regulations 2025 aims to modernise existing laws, ensuring enhanced compliance and safety for food sold through delivery services across the state.

Queensland Food Delivery Market Trends

According to the Australia food delivery industry analysis, Queensland’s food delivery market is experiencing robust growth, driven by a rising consumer preference for convenient dining options. The growth of digital ordering platforms, combined with the demand for faster and more reliable deliveries, contributes to ongoing trends in innovation and customer satisfaction. Queensland’s tourism sector, which was valued at USD 31 billion in 2023, significantly supports the food delivery market. The influx of tourists leads to increased demand for convenient dining options, including delivery services.

Western Australia Food Delivery Market Dynamics

In Western Australia, the food delivery market is shaped by a blend of urban and regional demands. The growing adoption of digital platforms, along with increasing interest in eco-friendly delivery solutions and local cuisines, is influencing market trends. The Department of Health’s LiveLighter® programme supports the food delivery market by promoting healthier eating choices. Food delivery platforms can collaborate with this initiative to offer nutritious meal options, such as low-calorie or balanced meals, catering to health-conscious consumers.

Competitive Landscape

The Australia food delivery market key players connect customers with a wide range of restaurants, providing a convenient way to order food for delivery or takeaway. They offer access to thousands of local eateries and a diverse selection of cuisines. Known for their user-friendly platforms, competitive pricing, and vast restaurant networks, these services have expanded quickly through special deals, promotions, and partnerships with popular restaurant chains.

Key Industry Players

Uber Technologies Inc.: Founded in 2009 and headquartered in San Francisco, United States, Uber Technologies Inc. is a global leader in ride-hailing and food delivery services. Through its app, Uber connects users with drivers and restaurants, offering food delivery via Uber Eats. The company operates worldwide, transforming urban transportation and logistics.

Menulog Pty Ltd: Established in 2006 and headquartered in Sydney, Australia, Menulog Pty Ltd is a prominent online food delivery service. It connects consumers with a variety of restaurants, allowing them to order food for delivery or takeaway. Menulog operates across Australia and New Zealand, focusing on convenience and wide restaurant choice.

DoorDash Technologies Australia Pty Ltd: Founded in 2013 and headquartered in San Francisco, United States, DoorDash Technologies expanded into Australia in 2021. It is a major player in the food delivery industry, providing on-demand delivery services from restaurants to customers via its user-friendly app, offering convenience and a wide selection of eateries across Australia.

HungryPanda SG Pte. Ltd.: Founded in 2017 and headquartered in Singapore, HungryPanda SG Pte. Ltd. is a food delivery service focused on delivering Asian cuisine to customers globally. The company operates primarily in the UK, Australia, and other markets, offering a wide range of restaurant choices and focusing on the Asian food community.

Another key player in the Australia food delivery market report is Grocery Delivery eServices Australia Pty Ltd among others.

Recent Development

February 2023

McDonald’s launched its McDelivery service in Australia through the MyMacca’s app as part of its digital expansion. The service was trialled in select New South Wales restaurants earlier in the month, allowing customers to place orders directly via the app. The service is expected to expand nationwide.

March 2022

Fantuan Delivery, an Asian food delivery app founded in 2014, launched in Australia, beginning with Sydney and Melbourne. Headquartered in Burnaby, the company experienced significant growth and secured Series B and C funding to support its expansion into new markets.