Australia online food delivery sector is experiencing robust growth. In 2024, the market reached USD 11.5 billion, and it’s projected to nearly double to USD 20.3 billion by 2033, growing at a solid CAGR of 6.3%.

What Exactly Is Online Food Delivery?

Online food delivery refers to digitally mediated services—via apps or websites—that allow consumers to order meals, groceries, or prepared foods for delivery. This ecosystem includes full-service platforms, logistics-centered models, and emerging cloud kitchens that cater exclusively to delivery.

Learn More Australia Online Food Delivery Market Report

Why Is This Market Heating Up in Australia? Digital Lifestyle & Convenience Culture

Busy urban lifestyles, dual-income households, and preference for seamless meals are driving demand. Smartphones and high-speed internet make ordering effortless.

Cloud Kitchens & Flexible Models

Delivery-only kitchens reduce overheads and allow rapid menu innovation, scaling the market in cost-efficient ways.

AI and machine learning are enhancing delivery logistics—from smarter routes to personalization—making services faster and more reliable.

Health & Sustainability Trends

There’s rising consumer interest in nutritious and eco-friendly options, pushing platforms to offer plant-based meals and sustainable packaging.

Real-World Snapshots: Delivery in Action

• Market Surge

Revenue is set to grow from approximately USD 12.7 billion in 2025 to USD 17.6 billion by 2030, signalling vigorous expansion.

Challenges on the Menu

• Profitability Pressures

Delivery margins are thin, harmed further by gig economy regulations and high operating costs—even small delays can eat into profits.

• “Ghost Kitchens” Quality Issues

Casual reports suggest inconsistent quality from unbranded kitchens, delivering underwhelming meals despite flashy offers. A Reddit user quipped:

“Recently I’ve noticed … the rise of low-quality ghost kitchens … even at 40% off I feel like they aren’t worth it.”

• Price Hikes vs In-Store Value

Many consumers feel delivery apps inflate prices alarmingly—one user reported a staggering 63% markup over counter prices.

The Road Ahead: Fast, Smart & Sustainable

• AI-Driven Forecasting & Logistics

Cutting-edge models are helping predict demand, reduce waste, and optimize inventory in dynamic food chains.

• Integration with Q-Commerce

Quick commerce (rapid delivery within minutes) is emerging as a key trend, especially for essentials beyond meals.

• Sustainability as a Differentiator

Innovations in biodegradable packaging, EV and bicycle delivery, and locally sourced menus will shape consumer preferences forward.

Receive Your “Australia Online Food Delivery Market” Sample Report – Click to Get Started

Evolving Consumer Behavior

Consumer expectations in Australia are evolving rapidly, driven by exposure to global trends and growing familiarity with on-demand services. People now seek not just speed, but customization—whether it’s vegan-only menus, gluten-free options, or allergen-specific filtering. Personalization is becoming a competitive edge, with platforms using data analytics to recommend meals based on past orders, dietary preferences, and even mood-driven prompts. This shift toward hyper-personalized food experiences is influencing how restaurants and delivery platforms curate their offerings.

Competitive Landscape & Market Consolidation

As the sector matures, competition is intensifying. Major players are consolidating their positions through acquisitions, partnerships, and loyalty programs. Smaller platforms and independent restaurants face mounting pressure to stay visible amid aggressive marketing by big tech-backed services. However, niche operators offering hyper-local cuisine or unique value propositions—like zero-waste kitchens or subscription-based meal plans—are carving out loyal followings. Expect strategic mergers, tech innovations, and regional expansions to shape the next phase of market development.

Why This Matters Now

With convenience at the forefront of consumer choice, the online food delivery market isn’t just booming—it’s transforming how Australians dine and live. From AI-fueled logistics to eco-conscious choices and fast commerce, this evolving ecosystem supports both business innovation and consumer demand for speed, variety, and sustainability.

About IMARC Group

IMARC Group is a global consulting firm specializing in market intelligence. Their Australia Online Food Delivery Market report provides breakdowns across platform types, business models, payment methods, and regions—offering valuable insights for brands, investors, and policymakers.