Australia Online Food Delivery Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Australia Online Food Delivery Market Trends

The Australia online food delivery market benefits from significant opportunities, such as the convenience of ordering from home at any time. It saves time by removing the need for cooking or dining out. With a wide selection of cuisines and 24/7 services, customers can satisfy late-night cravings. The pizza foodservice sector experienced a 37% growth in 2021-22, with average sales exceeding USD 600,000, as reported by the Australian Taxation Office.

Australian online food delivery platforms are highly user-friendly, offering intuitive navigation and quick ordering, which impacts the Australia online food delivery market revenue. Contactless delivery ensures greater safety, particularly after the pandemic. Additionally, many platforms provide promotions and discounts, making dining more affordable, while real-time tracking keeps customers updated on their orders.

Australia Online Food Delivery Market Growth

Payment flexibility is a significant advantage, with options such as credit cards, digital wallets, and cash on delivery, driving demand of the Australia online food delivery market. Platforms also offer customised orders to suit dietary needs, while customer reviews enhance service quality. Some platforms feature exclusive menus that provide unique dining experiences not available at physical locations. In July 2024, Google Wing launched its quieter drone delivery service in Melbourne, marking its biggest international expansion. This service enables around 250,000 residents in the city’s eastern suburbs to order smaller items from Eastland Shopping Centre through the DoorDash app, improving delivery options for local consumers.

Online food delivery platforms also integrate with restaurant loyalty schemes, allowing customers to earn rewards, further boosting the Australia online food delivery market opportunities. These platforms help restaurants extend their reach to broader audiences, including regions where they don’t have physical outlets. Faster delivery times and support for local businesses also enhance the service, ensuring customers experience quick and efficient delivery.

Australia Online Food Delivery Market Insights

• In 2023, Australia’s fast food and takeaway services sector reached a record revenue of USD 23 billion, marking a USD 2.4 billion increase from the previous year (Australian Bureau of Statistics). This growth underlines the rising demand for convenient, fast food delivery services in the online food delivery market.
• Domino’s Pizza Enterprises Ltd remains the largest pizza chain in Australia, leading in both store count and sales. As the dominant player in the market, Domino's continues to drive growth in the online food delivery space, offering consumers efficient pizza delivery options across major cities in Australia.
• Brands such as KFC, Hungry Jack's, Pizza Hut, Zambrero, Guzman y Gomez, and Grill’d opened 184 new outlets across Australia, according to industry reports. This expansion further boosts the online food delivery market, increasing the variety of available options and encouraging greater customer engagement with food delivery services.

Australia Online Food Delivery Market Drivers

Integration of Artificial Intelligence (AI)

Online food delivery platforms also integrate with restaurant loyalty schemes, allowing customers to earn rewards, further boosting the Australia online food delivery market opportunities. These platforms help restaurants extend their reach to broader audiences, including regions where they don’t have physical outlets. Faster delivery times and support for local businesses also enhance the service, ensuring customers experience quick and efficient delivery. In March 2021, KFC Australia introduced a white-label food delivery service via its app, offering free delivery for two weeks with the purchase of a Tower Burger. Collaborating with DoorDash Drive, the service enabled customers to order and track meals directly through the app, offering exclusive deals. This provided a more direct delivery option in addition to platforms such as Deliveroo and MenuLog.

Expansion of Delivery Options

The growth of the Australia online food delivery market has been driven by the evolution of online services, offering click-and-collect, convenience store deliveries and groceries. Platforms like Uber Eats and Deliveroo have expanded to include alcohol and retail options. In July 2024, Google Wing launched its quieter drone delivery service in Melbourne, marking its biggest international expansion. This service enables around 250,000 residents in the city’s eastern suburbs to order smaller items from Eastland Shopping Centre through the DoorDash app, improving delivery options for local consumers.

Opportunities in the Australia Online Food Delivery Market

As sustainability increasingly influences Australian consumers, it is shaping the Australia online food delivery market dynamics and trends. Platforms are prioritising eco-friendly packaging and reducing food waste by using recyclable materials and adopting green delivery options, like electric vehicles, to appeal to eco-conscious customers. According to the Department of Agriculture, Water, and the Environment, in 2022, 60% of organic food sales in Australia were made to retailers, with 58% sold directly to consumers.

Market Restraints

The Australia online food delivery market faces several restraints, including high delivery costs, particularly in remote areas, and profitability challenges for restaurants due to high commission fees. Inconsistent delivery times, intense competition, and regulatory complexities also hinder growth.

Privacy concerns, the environmental impact of packaging, and limited-service availability in regional areas further restrict market potential, while the need for eco-friendly solutions and compliance with various regulations adds to operational costs. These factors collectively impact consumer demand and platform profitability.

Australia Online Food Delivery Market Share

Market Breakup by Platform Type

According to the Australia online food delivery market analysis, mobile applications offer convenience and simplicity, enabling customers to quickly place orders from their smartphones. With features such as real-time tracking, saved preferences, and push notifications, these apps enhance the user experience, facilitating seamless payments and a quicker ordering process. In 2023, the Reserve Bank of Australia reported daily non-cash payments totalling approximately USD 300 billion, highlighting the increasing reliance on digital payment methods, including for food delivery.

Websites offer a more comprehensive view of restaurant menus, allowing customers to browse a broader selection of options. They are perfect for those who prefer using a larger screen with easier navigation. Websites also provide quick access to promotions, customer reviews, and detailed food descriptions, helping users make more informed decisions.

Market Breakup by Business Model

Order-focused platforms streamline the process by directly connecting customers with restaurants, primarily focusing on receiving and processing orders, which drives opportunities in the Australia online food delivery market. This model simplifies operations for restaurants and provides customers with a fast, direct ordering experience, offering flexibility by letting them choose from multiple menus in one place. In March 2022, Fantuan Delivery, a leading Asian food delivery app, launched in Sydney and Melbourne, initially serving CBD, Boxhill, and Eastwood with quick delivery and pickup options via its app, accompanied by promotions and plans for rapid expansion.

Logistics-based platforms manage the delivery process, often relying on third-party services to reach customers. These platforms provide flexibility for restaurants lacking delivery infrastructure, expanding their market reach. They optimise delivery routes to ensure timely service, benefiting customers with faster deliveries while alleviating logistical burdens for restaurants, making the food delivery process more efficient.

Restaurant-specific platforms focus on delivering a dedicated service for individual restaurants, offering tailored experiences for both businesses and customers, which boosts the Australian online food delivery market. This model fosters brand loyalty through exclusive deals, faster deliveries, and personalised services. Customers receive fresh, high-quality food directly from their preferred restaurant, while businesses maintain control over the process. In February 2023, McDonald's launched its McDelivery service in Australia via the MyMacca’s app, initially trialled in New South Wales and expected to expand nationwide.

Market Breakup by Payment Method

According to the Australia online food delivery market analysis, online payments lead the sector by offering secure, quick, and seamless transactions, allowing customers to pay for deliveries via credit cards, digital wallets, or bank transfers. This method enhances convenience and facilitates fast checkouts with added security, while reducing the need for cash handling, ensuring a smoother, safer experience. Local food delivery services, such as Arrivederci Pizza, provide cash on delivery (COD) options, enabling customers to place orders by phone or online and pay the driver in cash. This option widens the customer base, including those without access to digital payments, offering convenience and simplicity in transactions while ensuring security.

Cash on delivery offers greater flexibility for customers who prefer not to pay online, thus driving demand for the Australia online food delivery market. It is particularly beneficial for those without digital payment options or who prefer paying at the time of delivery. Additionally, it builds trust, as customers can inspect their orders before making the payment, which enhances satisfaction and encourages customer loyalty.

Australia Online Food Delivery Market Regional Insights

New South Wales Online Food Delivery Market Overview

New South Wales is seeing an increase in demand for online food delivery, driven by busy urban lifestyles and a desire for convenience. With a diverse population, there is a strong preference for quality and local food options. The New South Wales Food Authority is updating its food regulations with the draft Food Regulations 2025 to improve food safety standards, ensuring better compliance for food sold through delivery services across the state.

Queensland Online Food Delivery Market Trends

Queensland's online food delivery market is growing due to wellness trends, with consumers favouring healthier, sustainable food choices. There is a rising demand for local and organic food, particularly in urban areas. The state's tourism sector, valued at USD 31 billion in 2023, boosts demand for convenient food delivery options, as tourists increasingly seek easy dining solutions.

Western Australia Online Food Delivery Market Dynamics

Western Australia's online food delivery market is expanding due to growing demand for convenience and variety in dining. Consumers are becoming more conscious of food quality, preferring fresh, locally sourced ingredients and faster delivery times. The Department of Health’s LiveLighter® programme promotes healthier eating, creating opportunities for food delivery platforms to offer nutritious options, such as low-calorie or balanced meals, appealing to health-conscious consumers.

Competitive Landscape

The Australia online food delivery market key players link customers with restaurants and couriers, providing fast and convenient delivery options. They enable users to order from a wide selection of local restaurants and takeaways, with services available across major Australian cities, emphasising convenience and diverse cuisine choices. These platforms offer efficient delivery services from both restaurants and grocery stores, meeting the increasing demand for convenience and variety in urban areas.

Key Industry Players

Uber Technologies Inc.: Uber Technologies Inc. is a global leader in ride-hailing and food delivery services. Founded in 2009 and headquartered in San Francisco, United States, Uber’s food delivery service, Uber Eats, operates in numerous countries, including Australia. It connects customers with restaurants and couriers, offering quick and convenient food delivery solutions.

Menulog Pty Ltd: Menulog Pty Ltd is a leading Australian online food delivery service, founded in 2006 and headquartered in Sydney, Australia. It allows users to order from a wide variety of local restaurants and takeaways, with delivery services available across major cities in Australia, focusing on convenience and diverse cuisine options.

DoorDash Technologies Australia Pty Ltd: DoorDash Technologies Australia Pty Ltd is a prominent online food delivery company, established in 2020 and headquartered in Melbourne, Australia. A subsidiary of DoorDash, it offers fast and efficient delivery services from restaurants and grocery stores, catering to the growing demand for convenience and variety in urban areas.

HungryPanda SG Pte. Ltd.: HungryPanda SG Pte. Ltd. is a global food delivery service catering primarily to the Asian community, founded in 2017 and headquartered in Singapore. Operating in Australia and other countries, it connects customers with Asian restaurants, offering delivery services for authentic dishes and expanding its presence across major cities globally.

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

Recent Developments

November 2024

Amazon Australia partnered with DoorDash to offer Prime members two years of free DashPass, providing unlimited free delivery fees on eligible orders. This collaboration allows members to save more and receive 5% credit on eligible pickup orders. Amazon’s goal was to enhance savings and convenience for its Prime members across Australia.

March 2022

Fantuan Delivery, an Asian food delivery app, entered the Australian market with launches in Sydney and Melbourne. Established in 2014, the company experienced 200% growth in 2021. Operating in over 40 cities globally, Fantuan partnered with 10,000 couriers and aimed to expand further within Australia, offering both delivery and pickup services.