“All in, we forecast delivery to grow from $43 billion in 2017 to $76 billion in 2022, 12% annually over the next five years,” says Cowen chief analyst Andrew Charles. “Our survey data shows plenty of room for online to take share.”
While millennials make up a large portion of that growing market, it’s the 35-44 age group that is also greatly contributing to the rise in deliveries.
Online delivery makes up close to half of all food deliveries, and that is expected to climb as GrubHub (the most popular online food delivery service) and others gain in popularity. The current online delivery market is worth $20 billion annually, and Cowen predicts that number to get as high as $55 billion by 2022.
Many retail bakeries and bakery cafes use Grubhub in order to get their products to more customers. Convenience is key in foodservice, and deliveries will become more important to the business model for those in the baking industry.