Grocery Pickup and Delivery App Trends and Forecast 2025

Food Delivery Industry Growth

Food firms can now reach their customers more easily than ever before. Restaurant delivery has increased by 20% in the last five years; while estimates vary, online meal delivery sales are expected to reach $220 billion by 2023, accounting for 40% of overall restaurant sales. According to Deutsche Bank, the $24 billion online grocery sector will grow to $120 billion by 2025.

The global impact of the Covid-19 pandemic may have accelerated this hypergrowth, but what enabled its success is the (relatively) recent proliferation of delivery models and fleet types: same-hour, same-day, and next-day delivery; single fleet, multi-fleet, crowdsourced fleets, and in-house fleets; deliver from the store, curbside pickup, delivery from robotic warehouses, and so many others.

Based on field data and industry estimates, here are six main trends that are altering food delivery and will continue to do so in the next years.

The total cost of Food Delivery App Development ranges between $10000 to $ 30000.

COVID’s Effect

It is commonly known that buyers need to be more hesitant to adopt online food ordering and grocery shopping compared to categories such as apparel and technology. People are now warier about going to the stores. As a result, extensive entering lines can be seen. In April 2020, sales in the United States increased by 110%.

More than half of questioned grocery buyers told surveyors that the coronavirus outbreak is forcing them to buy groceries online indefinitely. Only a pandemic of such magnitude could have prompted such rapid adoption of e-commerce in the grocery segment.

Grocery mobile app development has gone through a revolution in the recent past. People have started to understand that they cannot only feed their family with just the products that are available in the store and have them deliver it home.

Five Major Trends That Will Drive Growth in the Grocery Delivery Market by 2025

Quick Commerce: the next big thing-

The COVID-19 pandemic has prioritized consumer safety and convenience, causing a chain reaction that has accelerated demand for same-day deliveries. Last-mile food and grocery delivery companies are working towards less than 30 minutes deliveries and are incubating a new sector called “rapid commerce.” Operators continue to innovate to lower delivery time to less than 10 minutes.

Operators of shared mobility will carry both products and people-

Companies like e-commerce or hyperlocal grocery stores create a huge opportunity for shared mobility operators. Several shared mobility providers repurposed their fleets during the epidemic to tap into the thriving delivery sector. The future will be defined by a slew of new developments, such as autonomous vehicles for passenger and cargo transportation, vehicles with larger trunks to accommodate goods delivery, e-Cargo cycles, etc.

Operators of shared mobility will carry both products and people-

Companies like e-commerce or hyperlocal grocery stores create a huge opportunity for shared mobility operators. Several shared mobility providers repurposed their fleets during the epidemic to tap into the thriving delivery sector. The future will be defined by a slew of new developments, such as autonomous vehicles for passenger and cargo transportation, vehicles with larger trunks to accommodate goods delivery, e-Cargo cycles, etc.

 Tech innovation will be a critical growth driver-

Blockchain, AI, virtual assistants, Big Data, smart tracking, sophisticated analytical insights, bespoke interfaces, virtual reality, and cryptocurrency will accelerate the market revolution. AI-powered dynamic route optimization will reduce delivery times, save costs, and increase customer happiness. Last-mile delivery will become more efficient and cost-effective due to blockchain and 5G.

Technology innovation is also becoming a crucial difference in the marketplace.

Autonomous technology will enable contactless delivery and increase the deployment of drones, bots, and autonomous vehicles-

Concerns about health and cleanliness, combined with rising labor expenses, have increased the appeal of contactless delivery. As a result, autonomous delivery systems are getting a lot of attention.

 Bot deliveries are projected to cost 60% less than manual delivery. These cost savings and increased legal certainty will boost autonomous deployments in the last-mile delivery arena. Starship is one of the world’s fastest-growing firms, with 1,000 autonomous bots. Among the company’s distinguishing attributes are contactless delivery, green technology, 99% automated deliveries, and company partnerships.

As the industry evolves, businesses must consider various strategies to capitalize on the sector’s tremendous development potential. Long-term growth will be fueled by the exploration of complementary alliances, new business and delivery models, and breakthrough technologies that enable sustainable operations, resource management, and cost efficiency.

Synarion IT Solutinos is a leading Grocery App development company which provides various services to different enterprises for the development of mobile apps.

Top meal delivery trends to look out for in 2025

• Increased reliance on third-party delivery-Third-party delivery is becoming more popular in the restaurant and grocery businesses.

Restaurant businesses are increasingly collaborating with various third-party fleets to increase their delivery presence across all locations and daily hours. While this strategy broadens the chains’ geographic reach and pool of potential customers, it also implies that many of their delivery operations are still under their control. Some food firms address this by using their online ordering sites but outsourcing the delivery to delivery as a service (DaaS) providers.

• Restaurant delivery fleets in-house-Some businesses are taking an entirely different method than the one outlined above, constructing in-house delivery fleets. Panera debuted its in-house delivery service in 2016, defying industry trends. It is now one of the few restaurants that only give a portion of its delivery earnings to third-party vendors.

When delivery occurs at scale, with tens of thousands of orders per day (or more), the logistics become increasingly complex. This is why chains that manage delivery across several restaurants benefit the most from adopting delivery management software systems.

• Prioritizing tracking of delivery data-With third parties handling such a major portion of the delivery flow, it’s no surprise that food providers are turning to data collection and analysis to understand their delivery operations better.

Having insight into your delivery operations is vital. The benefits extend from relationships with external fleets and aggregators to making flawless deliveries to enabling other arms of your organization, such as customer support, marketing, and branding.

• Tech titans are invading food delivery-Tech Giants started allowing meal ordering and delivery directly from Search and Maps. Orders from partner restaurants will be integrated into the search and map functions, allowing users to order immediately from the search results page. Deliveries will be handled by the same fleets that the restaurants now employ.

Now that a significant portion of food businesses’ revenue is invested in online sales and off-premise fulfillment such as delivery, curbside pickup, and drive-thru, we expect this trend to continue as tech behemoths step in with investments, marketplaces, and new services.

• The rapid expansion of internet food stores-The global pandemic boosted online grocery sales and, as a result, grocery delivery.

Larger chains can also open dark supermarkets in urban areas to better serve customers and create convenient fulfillment alternatives such as Buy Online and Pickup In-Store. Online grocery delivery is unavoidable: customers want more convenience and control over how and when they get groceries, and retailers will desire the financial growth that on-demand grocery delivery can give.

• Subscriptions to meal delivery services are increasing– The delivery subscription trend has found a perfect match in both specialized online food delivery and the millennial generation. People born between the early 1980s and the mid-2000s are the largest age demographic in the United States, driving massive changes in the food delivery industry.

With online orders increasing faster than ever, food operators now have an unprecedented opportunity to increase profit margins and customer reach. The challenge will be to balance customer demand for fast, convenient, and transparent delivery with the logistical complexity and costs required to meet these demands.

Trends in food delivery

The evolution of the food distribution sector during the epidemic is a tribute to technological innovation. It is one of the major causes of the rapidly changing trends in the food delivery industry. Here are some new trends to keep an eye on.

Hyperlocal food delivery:

These are deliveries that can be made inside the boundaries of a neighborhood, such as a single block near a local restaurant. However, these hyperlocal deliveries might require more work due to the rapidity with which they must be completed. The scale is another important component in determining their performance.

There are sophisticated hyperlocal meal delivery tools on the market and online these days. These solutions enable the organization to reduce delivery turnaround time and build speedier routes to multiple pickups and drops. This boosts delivery profitability and client loyalty.

Food delivery by drones:

While this food delivery is becoming more popular, some things could be improved. Some companies, like Zomato, Domino’s, and Uber Eats, have successfully tested drone delivery. The key difficulty is that the drone has specific capacity limitations.

It also cannot travel very far, and its battery life is limited. However, technologically savvy food delivery companies such as Domino have succeeded in delivering pizza using drones. Drone technology will gain appeal as it matures into a sustainable process, particularly in a hyperlocal scenario.

Autonomous food delivery:

One of the top food delivery trends in 2020 was autonomous food delivery. Although this type of meal delivery appears to be something out of a science fiction film, certain citizens in cities such as London are becoming accustomed to food delivery by robots. Some robots go out and get groceries and restaurant meals.

Phantom kitchens-

A ghost kitchen, also known as a dark kitchen or cloud kitchen, is essentially a culinary room outfitted with all the tools and equipment required to prepare meals for customers. The only thing that distinguishes a ghost kitchen from a regular restaurant is that it does not provide an eating experience. Ghost kitchens only cook meals for takeout or delivery.

Customers flock to ghost kitchens. Ghost kitchens are one of the most popular food trends and will continue to be popular shortly. It is a highly profitable company concept.

Zero waste

The zero Waste movement encourages the redesign of dairy products that are traditionally single-use items to reduce waste. The ultimate goal is to reduce the amount of garbage dumped in landfills, incinerators, or the ocean. Reusable straws and grocery bags are two familiar products that have recently been reinvented.

The Rise of Food Delivery Companies

Following developments in the food delivery industry, more than half of all client orders are delivered directly from restaurants’ apps or websites. Restaurants and other food service establishments are managing digital ordering and meal delivery in various ways. While some people do it themselves through independent channels, third-party platforms such as Uber Eats and Delivery Hero have grown significantly. Hybrid delivery services are also gaining market dominance by revolutionizing how ordered food is delivered.

The rise of digital technology has revolutionized and reshaped the food delivery process. Customers are now placing orders through restaurant apps and websites rather than visiting the restaurant. Restaurants, for their part, ensure transparency and ease in their offerings. Once the order is placed online, the restaurant ensures that the food is delivered to the customer’s home.

The Digital Age Culture is Fueling Growth

The rise of internet ordering and restaurant delivery can be ascribed largely to digital era culture. Millennials and Generation Z are used to ordering most of their things online and waiting for them to arrive. The market size continues to grow as more people in these, and older generations join the online ordering and meal delivery bandwagon. Businesses are recognizing the evolution and adapting to the market. As a result, more players are entering this food market segment, bringing new trends.

Conclusion

The grocery industry, like any other, is subject to change. And with the monumental rise in the use—and convenience of—digital technologies and the growth of app-based smartphone shopping, it’s no surprise that we’re seeing all sorts of innovation happening in this sector. We’ve taken a close look at the grocery pickup app sector and seen some big changes coming down the line.

The services have grown in popularity in recent years, and the category will continue to grow for several reasons. Firstly, it’s all about convenience: customers can get their groceries without ever having to leave home. Secondly, it’s about money—how often have you left a grocery store only to think of something else you need? It happens all the time. Grocery pickup and delivery apps are easy to put your shopping on autopilot and ensure you don’t forget anything.