How Important is the Market for Online Fresh Food Delivery Today?

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22nd December 2021

Food & Recipes

Eating in is the new eating out

Is fresh food delivery the new ‘dining out’? Almost all of us have grabbed a takeout or ordered home delivery at one point or another. Be it pizza, fish and chips or Chinese. Over the past 15 years, with the proliferation of smartphones, there has been a move towards online shopping. This has helped with the development of food delivery apps, meaning the range of options is now far greater.

Over the years, more of us are eschewing the hassle of dining out for the convenience of dining in. This shift in habits is transforming the restaurant sector in noticeable ways. For example, new players are entering the market in the form of:

  • ‘Dark kitchens’ (which cook only for delivery, with no sit down service).
  • ‘Virtual brands’ (usually introduced by existing physical restaurants as a new revenue stream to capitalise on the home delivery market).

These forces cause traditional restaurants to rethink their business models and diversify out of traditional sit-down table services.

Looking to the future

It is undeniable that the demand for online food delivery will continue to grow. Frost & Sullivan, a research and consultancy firm, estimated that in 2018 the online food delivery industry generated $82 billion in gross revenue, and that by 2025, this figure is expected to more than double.

However, as the sector continues to expand, it will need to overcome a growing number of obstacles. Examples of such include predatory pricing and manipulation of the value chain by restaurants to stay afloat. In addition, as the reach of online delivery companies grows (sometimes at the expense of restaurants), legislators will need to consider whether to regulate for the sector. This could be done by, for instance, setting caps on the margins paid for the service by restaurants, as advocated by interest groups in the US and Canada.

Ultimately, however, online fresh food delivery is here to stay.

Choosing quality without sacrificing convenience

Lions Prep is an online fresh food delivery service that delivers gourmet meals straight to your door. As with any other online food delivery service, our team of chefs take the stress out of planning and cooking by preparing your meals. Lions Prep can be tailored to your specific goals of gaining muscle or losing weight, or simply eating healthy. With a balanced, vegan, and low carb meal plan to pick from, clients can create plans that suit their unique tastes and dietary requirements.

By choosing Lions Prep, you are eating meals that are cooked to order and delivered to you fresh. So, you’ll always get maximum taste and nutrition. And, unlike other online delivery companies, we will have your healthy meal plans delivered to your door by a professional courier company, twice a week.