Global Last-mile Food and Grocery Delivery Growth Opportunities

Global Last-mile Food and Grocery Delivery Growth Opportunities

Quick Commerce, Funding Rounds, Drone and Bot Deliveries are Last-mile Delivery’s Levers for Growth in the US, China, and Europe Until 2025

RELEASE DATE
31-Aug-2021
REGION
Global
Research Code: PC10-01-00-00-00
SKU: AU02218-GL-MT_25735
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Description

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. Frost & Sullivan 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?

RESEARCH: INFOGRAPHIC

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Table of Contents

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™

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

Forecast Assumptions, Last-mile Delivery of Food and Grocery (continued)

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

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

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

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

Competitive Benchmarking of Key Participants (continued)

Company Profile—Meituan

Company Profile—Instacart

Company Profile—Getir

Online Grocery Delivery Market Outlook

Growth Opportunity 1—Digital Tools and Alternate Delivery Models to Accommodate the Growth in Last-mile Delivery

Growth Opportunity 1—Digital Tools and Alternate Delivery Models to Accommodate the Growth in Last-mile Delivery (continued)

Growth Opportunity 2—Business Model Diversification and Sustainability Leading to New Participant Entries

Growth Opportunity 2—Business Model Diversification and Sustainability Leading to New Participant Entries (continued)

Growth Opportunity 3—Partnerships, New Business Models, and New Technologies Underpinning Long-term Last-mile Delivery Growth

Growth Opportunity 3—Partnerships, New Business Models, and New Technologies Underpinning Long-term Last-mile Delivery Growth (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

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Related Research
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. Frost & Sullivan 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.--BEGIN PROMO--

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?
More Information
No Index No
Podcast No
Author Chanchal Jetha
Industries Automotive
WIP Number PC10-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9B01-A6,9963-A6,9A57-A6