by Cara Rasch
April 2, 2024
The foodservice industry is booming, and takeout and delivery are continuing opportunities for growth.
The foodservice industry is booming, and takeout and delivery are continuing opportunities for growth. But what exactly is driving the carryout and delivery trend, and what does it mean for the future of how we eat?
According to Packaged Facts’ new March 2024 report Food Carryout and Delivery: US Market Trends and Opportunities, the $727 billion food carryout and delivery market is primed for average annual growth of 5.1% through 2028. This new research report delves into the key factors shaping the takeout and delivery market.
Food carryout is ordered for off-premise consumption (e.g., to-go, in-store pickup, curbside pickup, and drive-thru). Delivery includes food ordered by phone, internet, mobile apps, and other channels, and then transported by in-house and third-party services, or shipped.
The takeout and delivery market includes restaurant operations, as well as sales of site-cooked/prepared, ready-to-eat, or ready-to-heat single-serve and family-sized foods and beverages.
Items packaged for takeout are often sold by retailers in a “grab-and-go” format, although foods and beverages that are made-to-order or packaged by consumers (e.g., pack your own salad at a salad bar) and taken off premises are also relevant.
Convenience Reigns Supreme: Busy schedules and a desire for a hassle-free dining experience are fueling the takeout and delivery trend. Both options offer a welcome break from cooking and cleaning, making them perfect for time-strapped consumers.
Labor Woes Drive Innovation: Staffing shortages are pushing restaurants to embrace takeout and delivery as ways to maintain business. These options require less staff on-site compared to traditional dine-in service.
Tech Revolutionizes Ordering: The pandemic accelerated the adoption of online and mobile ordering. This trend continues as restaurants leverage apps and data to personalize promotions, shorten wait times, and improve efficiency.
Robots, Drones, and Self-Driving Cars: Get ready for futuristic delivery options! Autonomous vehicles, sidewalk robots, and aerial drones are being piloted for food delivery, promising faster service and potentially lower costs.
AI Streamlines the Ordering Process: Artificial intelligence is poised to transform ordering. Imagine AI taking orders, upselling based on your preferences, and even recommending menu items to reduce restaurant food waste.
Dynamic Pricing for Takeout and Delivery Deals: Variable/dynamic pricing could become commonplace, offering discounts during off-peak hours or incentivizing orders of specific menu items. This could create a win-win situation for both restaurants and customers.
Consumers are increasingly concerned about environmental impact, which drives demand for sustainable and functional packaging takeout and delivery solutions.
Eco-Friendly Options: Look for a rise in recyclable, compostable, and reusable packaging options. This trend reflects consumer preferences and helps restaurants reduce their environmental footprint.
Premium and Practical: Sustainable packaging does not have to compromise on quality. Restaurants will need to find solutions that are well designed, functional, and cost-effective.
The takeout and delivery market is not one-size-fits-all. Different age groups have distinct preferences.
Tech-Savvy Millennials and Gen Z: Younger consumers age 18-34 are a key driving force behind online and app-based ordering and delivery services. Convenience is key for this busy demographic.
Gen X and Baby Boomers: Adults age 45 and up are more likely to use food carryout options. This may be due to familiarity, affordability, or a preference for picking up orders themselves while already out running errands.
Seniors: Though less frequent users of delivery options, seniors represent a promising market with potential. Pre-made meals and delivery offer solutions for those with limited mobility or difficulty cooking.
About the blogger:
Cara Rasch is a food and beverage analyst for Packaged Facts. She studies consumer and industry trends in this space and has a B.A. in economics from Allegheny College.
Additional analysis on the food carryout and delivery market can be found in the March 2024 Packaged Facts report Food Carryout and Delivery: US Market Trends and Opportunities.
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