The last-mile delivery industry for food and grocery is poised to grow as the shift from brick-and-mortar outlets to online retail continues. Last-mile delivery is no longer just about transporting products from the warehouse to the consumers but about fulfilling customer demand and experience. Customer behavior and expectations have changed in the last few years, challenging the way last-mile delivery operators operate. Operators are focusing on creating long-lasting, engaging relationships with customers and addressing their nuanced demands, such as contactless deliveries and curbside pickup. The publisher has analyzed the key trends expected to drive the market from a short-to-mid term perspective. This study is focused on analyzing the current state of the last-mile food and grocery delivery market and identifying key underlining challenges and growth opportunities for various stakeholders across the value chain. The US, Europe, and China have been covered in this study.
In 2020, the last-mile delivery market for food and grocery earned a revenue of approximately $25 billion. This is expected to cross $72 billion in 2025, accounting for the surge in the market due to the COVID-19 pandemic. Online food and grocery delivery is rapidly developing and start-ups in this space are experiencing tremendous growth. It is growing because of the convenience, variety, and cost available at the touch of a button. Major cities have been the epicenter of this market, especially as smartphones have become ubiquitous. Investments in the industry have been significant, and several mergers and acquisitions have already happened in the food delivery space. Technology providers and shared mobility operators are trying to get a slice of the pie. Mobility and eCommerce companies are considering last-mile food and grocery delivery service as a future avenue of growth and are trying to incorporate anything last-mile service in their portfolios.
Customer's delivery expectations have also changed over the years and they include transparency as a part of the shopping experience. Traditional track-and-trace technologies are no longer sufficient to meet industry standards, as customers are demanding real-time last-mile visibility - from shipping fulfillment to location of drivers and until the estimated time of arrival. Last-mile delivery operators are adopting smart technologies, such as smart tracking, dynamic route optimization, and advanced analytics, thereby increasing the efficiency of their delivery supply chain.
The last-mile delivery market is currently undergoing a major transformation, with new innovative solutions determining the way goods are being delivered from point A to point B. The market is witnessing an influx of a new breed of tech-savvy start-ups that are coming up with unique business models and services that are largely disrupting the supply chain ecosystem, especially in the last mile. Rising congestion and pollution within cities have resulted in more emphasis on providing for urban last-mile delivery solutions. Instant deliveries and user experience have started to become critical value differentiators. This has resulted in firms exploring new technologies and services to alleviate some of these growing issues.
KEY ISSUES ADDRESSED
- What are the key trends in the last-mile food and grocery delivery market?
- Which are the key global participants, and where do they stand in terms of competition?
- What are the current and future market revenue opportunities from last-mile food and grocery delivery?
- What are the key technological innovations?
- What is the growth opportunity that this market can offer?
1. Strategic Imperatives
- Why Is It Increasingly Difficult to Grow?
- The Strategic Imperative 8™
- The Impact of the Top Three Strategic Imperatives on the Last-mile Delivery of Food and Grocery Industry
- Growth Opportunities Fuel the Growth Pipeline Engine™
2. Growth Opportunity Analysis, Last-mile Delivery of Food and Grocery
- Last-mile Food and Grocery Delivery Market - Scope of Analysis
- Definition and Market Segmentation
- Key Growth Metrics for Last-mile Food and Grocery Delivery
- Key Competitors in the Last-mile Food and Grocery Delivery Market
- Growth Drivers for Last-mile Food and Grocery Delivery Market
- Growth Restraints for Last-mile Food and Grocery Delivery Market
- Online Food and Grocery Delivery Given a Boost Post the Pandemic
- Forecast Assumptions, Last-mile Delivery of Food and Grocery
- Last-mile Delivery Revenue Forecast, Food and Grocery Delivery
- Revenue Forecast by Segment, Food and Grocery Delivery
- Revenue Forecast by Region, Food and Grocery Delivery
- Revenue Forecast Analysis by Region, Food and Grocery Delivery
- Competitive Environment, Last-mile Food and Grocery Delivery Market
- Revenue Share, Last-mile Delivery of Food
- Revenue Share Analysis, Last-mile Delivery of Food
- Last-mile Delivery - What are the Costs Involved?
- Current Popular Delivery Modes
- Automotive OEM Business Partnerships
- Key Challenges Faced by Last-mile Operators
- What Can Last-mile Delivery Operators do to Combat the Challenges?
- New Business Models That are Evolving to Combat the Challenges
- Autonomous Delivery - Key Market Highlights of 2020
- Last-mile Food and Grocery Delivery - The Way Forward
3. Trends Driving Market Growth
- Top Last-mile Delivery Trends
- Last-mile Delivery Key Trends - Short-, Mid-, and Long-term Trends
- Trend 1 - On-demand Delivery Key for Success of Operators
- Trend 2 - Service Diversification the Primary Reason for Acquisitions
- Trend 3 - Last-mile Delivery: A Big Opportunity for Shared Mobility Operators
- Trend 4 - Last-mile Operators Shifting to Electric Modes
- Trend 5 - Technology Trends in the Last-mile Delivery Market
- Trend 6 - Contactless Delivery Driving the Adoption of Autonomous Technology
4. Last-mile Food Delivery Market
- Key Growth Metrics for Last-mile Food Delivery
- Growth Opportunities in Food Delivery Boosted Post the Pandemic
- Delivery Model - Food Delivery
- Competitive Force Analysis
- Last-mile Delivery Revenue Forecast, Food Delivery
- Last-mile Delivery Revenue Forecast by Region, Food Delivery
- Last-mile Delivery Revenue Forecast Analysis by Region, Food Delivery
- Last-mile Food Delivery Operator Analysis
- Competitive Benchmarking of Key Participants
- Pricing Analysis of Key Participants
- Company Profile - Just Eat Takeaway.com
- Company Profile - Door Dash
- Company Profile - Delivery Hero
- Online Food Delivery Market Outlook
5. Last-mile Grocery Delivery Market
- Key Growth Metrics for Last-mile Grocery Delivery
- Growth Opportunities in Grocery Delivery Post the Pandemic Evident From the Boom in Revenue and Deliveries
- Delivery Model - Grocery Delivery
- Competitive Force Analysis
- Last-mile Delivery Revenue Forecast, Grocery Delivery
- Last-mile Delivery Revenue Forecast by Region, Grocery Delivery
- Fleet Forecast Analysis by Region, Grocery Delivery
- Extremely Crowded On-demand Grocery Space in Europe
- On-Demand Grocery Delivery Witnessing Increased Funding Post COVID-19
- Global Pricing Analysis
- Competitive Benchmarking of Key Participants
- Company Profile - Meituan
- Company Profile - Instacart
- Company Profile - Getir
- Online Grocery Delivery Market Outlook
6. Growth Opportunity Universe, Last-mile Delivery
- Growth Opportunity 1 - Digital Tools and Alternate Delivery Models to Accommodate the Growth in Last-mile Delivery
- Growth Opportunity 2 - Business Model Diversification and Sustainability Leading to New Participant Entries
- Growth Opportunity 3 - Partnerships, New Business Models, and New Technologies Underpinning Long-term Last-mile Delivery Growth
7. Next Steps
- Your Next Steps
- List of Exhibits
- Legal Disclaimer
A selection of companies mentioned in this report includes:
- Just Eat Takeaway.com
- Door Dash
- Delivery Hero