Market Research Reports - Ken Research USA Grocery Market, US Online Grocery Sales | Page 3

consumer trends due to increased convenience, variety of products, time-saving factor and
other reasons has resulted in increased revenue generation. Additionally, huge investments by
the venture capitalists helped the US food delivery market in its growth as it resulted in
emergence of various start-ups, who have actively promoted their companies with the help of
advertisements and promotional vouchers, hence driving the food delivery market. Evolution of
various start-ups such as Sprig, Grubhub, SpoonRocket and others acted as a major driver for
the online food delivery industry.
Market Segmentation
By Food Type: Pizza dominated the US food delivery market with ~% revenue share in 2016
owing to the high consumption of pizza in the US. Cheap deals and convenience have made
pizza chains successful in the US. Moreover, easy availability and fast delivery have increased its
consumer base leading to rising food delivery of pizza in the country. Additionally, the strong
marketing strategies which include advertisements and promotional offers by players who are
operating in Pizza-delivery market including Domino’s, Pizza Hut, and Papa John’s has attracted
huge number of customers towards them, providing segment dominant share. Pizza online
ordering generated ~% of the total online ordering revenue in 2016, clearly advocates high
demand for Pizza delivery. Other food type includes Non-Pizza food which includes Asian food,
Sandwiches, Italian, Hamburger, and Mexican, Salads, Coffee and others. Non-Pizza food type
accounted for ~% (~ billion) of the overall revenues of online food delivery industry in the US.
Competitive Scenario
Food delivery market in the US is observed to be highly concentrated with the presence of few
players capturing major share of the market. Domino’s, GrubHub, Pizza Hut, Papa John's, Eat24,
Postmates, DoorDash, Jimmy John's and Panera were observed to operate in the food delivery
market. Domino’s is leading brand in the food delivery market in the US majorly due to trust
factor associated with the company. The company being founded in the US in 1960 is one of the
oldest companies in the food delivery market of the US. Additionally, it is a pioneer in the pizza
delivery industry and the strategy of innovation of its products is a major growth driver.
GrubHub followed Domino’s with second highest revenue share during 2016.
Future Potential
US online food delivery market is expected to grow at a CAGR of ~% during the forecast period
owing to changing consumer trends of choosing food delivery over dining. The innovative
technology such as drone delivery announced in the industry shall attract more customers to
the food delivery market due to the factors such as time-saving and convenience. More
technological advancements like this are expected to be introduced in the market during the
forecast period, hence driving the market. The food delivery services are expected to penetrate