The food delivery companies are no longer the Pizza company. Now they even add healthy snacks into their service category. Therefore, the next time when you want to order a hot meal, weekly grocery or fresh fruit through a delivery company, make sure that you order for some home delivery snacks as well.
It is also very likely that you will be recommended for such snack by them as well. This is because there is a large number of such delivery companies out there. With so much competition, most of the delivery companies are adding healthy and tasty snacks in their service list. This has provided with a sweet spot for growth of their business as well as its revenue.
Promise results in rapid growth
The online food delivery market has some of the key players all over the world but there are also a large number of local food delivery service companies as well. These companies are doing good business and providing tough competition to the majors.
- This specific category in 2017 was valued at $81.56 billion
- The growth rate of this specific delivery industry is expected to be at a CAGR of 9.8% within the forecast period from 2018 to 2026.
This specific type of business primarily requires and driven by a considerable amount of funding and investments.
However, there are several major businesses who are investing directly or indirectly in this business. The promise in this field is very high to a staggering 300% year-over-year revenue growth rate. This was in 2018!
With such promises on the cards, it is natural that these companies have now included providing healthy snacks at home and especially in offices.
The different point of view
A lot of food delivery companies initially start off as a pure food delivery companies but the newcomers started to venture into other areas of food such as snacks and started delivering it as well for profit and growth.
- These companies also deliver fresh produce even to the underserved communities, though not all may do that.
- As for the consumers, they were usually meal focused in the beginning but slowly morphed into snacking as well and started placing an order for fresh fruit and veggies as well to snack on.
It is for this reason primarily that the food delivery companies started to focus on and delivering snackable items such as grapes and berries to burgers and pizzas as well as everything else in between that are easy to grab and eat.
As a result, these companies noticed the growing snack delivery portion as well in their meal delivery business. This means that:
- Though delivering restaurant food is still their primary focus and source of sustenance, more and more people are ordering healthy snacks and the demand for this is growing for sure.
- It is also seen that there is a growing demand in Asian-inspired items especially.
It is for this reason the food delivery companies are now adding more varieties in their food delivery item list so that they can meet the demands of their current as well as future customers.
New companies in the list
The good thing about today’s food delivery system is that there is an extensive use of technology, software and apps that has enabled the companies to take advantage of the it and take care of the complex logistics.
- The food delivery system and the market seem to be more organized now than it was before.
- Foods are delivered in the pristine and hit condition within the shortest possible time.
- The consumers can order their choice of food from any restaurant any time and from anywhere.
Most significantly, consumers can now order for healthy snack items to be delivered at home or in office in bulk or small quantities from any store in the region. The food delivery companies can serve it all just as expected taking advantage of cold chain logistics.
Growth in revenue
The food delivery companies have seen a significant growth in their revenue by adding delivery of healthy snacks in their service list. According to research it is found and suggested that:
- Some companies have reported to have a growth in their business revenue by as much as 600% and
- This is ideally a growth rate that is tempting newer businesses to try their hand in this particular sector of the food industry.
The good thing about this business is that the returns come in pretty fast, sometimes even in over a six-month period.
The market value and consumer behavior
However, more recently, it is realized that there is a surge of new companies taking on the market providing a tough competition to the major existing companies.
- It is all due to the high value of the consumer goods that have made them to decide to ‘take a bite of the market.’
- Another reason for the newer businesses wanting to explore this specific segment is that it is found that the CPG brands fit in very nicely with the wellness hour events in the office, where the demand for healthy snack item delivery happens to be the maximum.
As per the ability of the companies, both financially and other resources, they can even partner with smaller CPG brands as well. Though these brands and companies are lesser known but there is a lot more innovations going on in this particular segment.
In addition to the delivery aspect of healthy foods to the people, it has also provided the companies with a different and useful channel to showcase their products.
The most significant benefit of the growth of healthy snacks delivery and the partnership with the CPG brands is that the businesses comes to know about:
- The consumer behaviors
- Their ordering patterns
- Their preferred portion sizes as well as
- The snack formats.
It is expected that with the use of such knowledge, eventually, the food delivery business will promote the healthy category overall.
Therefore, including the delivery of healthy snacks in the list of services of the food delivery companies are welcome.