Online food delivery market – from Northern Europe to the world

The online food delivery market in the Nordic countries has exploded during the coronavirus pandemic. As in other parts of the world, this growth has slowed as consumers returned to shopping in physical stores following the health crisis. However, the pandemic has led to the development of new online shopping habits. Consumers have become experienced in ordering fresh food and hot meals, delivered directly to their doorstep at the click of a button. As a result, online food delivery has become a mainstream practice. In 2023, the market was valued at $8 billion and is expected to exceed $12 billion by 2027.

The online food delivery market is divided into two parts: grocery and food delivery. The former has higher annual revenue, while the latter has more users. In 2023, there were more than 10 million online food delivery users, while there were only 9 million grocery shoppers. This number is expected to rise steadily over the next few years.

Number of users in the Nordic online food delivery market, by market segment, 2017-2027 (millions). Data source: Statista.com

From Northern Europe to the world

The growing popularity of food delivery apps is one of the main reasons behind these impressive figures. Apps allow users to easily order food using their mobile devices anytime and anywhere. Local player Wolt is the most popular food delivery app in the region. Since its founding in 2014 as a restaurant delivery platform, Wolt has gained significant traction in its home country of Finland and its northern neighbors. The Wolt app ranks first in Norway and Denmark, and second in Sweden. In 2022, American online food delivery giant DoorDash acquired Wolt. The merger is expected to promote further international growth, with plans to enter the Canadian, Australian and Icelandic markets. Other popular food delivery apps in the region include HelloFresh, Uber Eats, Bolt and Glovo.

Leading food delivery apps in Finland by downloads in 2022. Data source: Statista.com

The Boom and Bust of Grocery Stores

The global online grocery market has grown exponentially during the pandemic, with investors pouring money into the fast-growing sector. Since the pandemic, the market has been struggling, with fewer funding rounds and plummeting valuations. Oda, a Norwegian grocery startup that recently lost its unicorn status, and Mathem, a Swedish online grocer, are among the businesses that have suffered in the recent market crunch. Most e-commerce segments have been affected as new challenges emerge in the Nordic market. Only time will tell how online grocers will fare during these uncertain times of market inflation and rising cost of living.

Year-over-year percentage change in digital commerce revenue in the Nordic countries from Q3 2021 to Q4 2022. Data source: Statista.com