Food and Grocery Delivery Trends: What’s New and What’s Here to Stay

The food delivery industry has experienced remarkable growth over the past few years, significantly changing how consumers access meals and groceries. The COVID-19 pandemic acted as a catalyst, prompting an unprecedented surge in demand for delivery services as people sought safe and convenient dining options. This evolution has not only reshaped traditional restaurants and grocery shopping but also paved the way for new business models and innovative approaches to food service.

As we explore the landscape of food delivery trends, we can categorize these developments into four distinct areas: 

• Food delivery trends: This category encompasses the growth of ghost kitchens and virtual brands, the integration of AI for personalized ordering, and the rise of contactless delivery. These trends reflect how restaurants are adapting to consumer preferences for convenience and speed.

• Alcohol delivery trends: With the increase in at-home consumption, this area focuses on the rise of craft cocktail delivery, alcohol subscriptions, and same-day alcohol delivery services. These innovations cater to consumers' desires for premium experiences and quick access to beverages.

• Grocery delivery trends: The grocery sector is seeing significant changes, particularly through rapid grocery delivery services, subscription models, and direct-to-consumer options. These trends are driven by the demand for convenience and the desire for unique products sourced directly from producers.

• Meal kit delivery trends: Finally, the meal kit segment has evolved with a focus on plant-based options, pre-cooked components, and sustainability. These offerings meet the needs of consumers who prioritize healthy eating, time savings, and environmental responsibility.

Let's explore how each sector is evolving and what it means for businesses and consumers in 2024.

Restaurant delivery trends

1. Ghost kitchens and virtual brands

The emergence of ghost kitchens represents a fundamental shift in the restaurant industry's approach to delivery services. These delivery-only kitchens operate without a storefront, maximizing efficiency while minimizing overhead costs.

Key aspects of this trend include:

• Operating delivery-only kitchens

• Creating virtual restaurant brands

• Optimizing kitchen space utilization

• Reducing operational costs

Recent data shows that the ghost kitchen market is expected to reach $71.4 billion by 2027, indicating significant growth potential despite some market consolidation. Companies like Reef Technology continue to expand their operations, though with more measured approaches than during the initial boom.

While ghost kitchens and virtual brands initially surged in popularity due to the rise of digital ordering and their lower overhead costs, there are indications that their demand may be flattening. An article from CNBC highlights how these businesses, once hailed as the future of dining, are now facing significant challenges, suggesting that their appeal may not be sustainable in the long run. 

2. AI and machine learning for personalized ordering

Artificial intelligence has become integral to the food delivery experience, transforming how customers discover and order meals. This technology enables unprecedented levels of personalization and operational efficiency.

Key aspects of this trend include:

• Implementing predictive ordering systems

• Developing personalized recommendations

• Optimizing delivery routes

• Enhancing customer engagement

AI and machine learning are integral to improving customer experience and will only become more advanced, driving further personalization in food delivery.

3. Contactless delivery

Contactless delivery has evolved from a pandemic necessity to a preferred convenience option for many consumers. This shift represents a lasting change in delivery preferences and operational protocols.

Key aspects of this trend include:

• Implementing digital payment systems

• Developing automated notification systems

• Creating secure delivery protocols

• Enhancing tracking capabilities

Contactless delivery will likely remain a popular option due to the convenience and added sense of security it provides. Even Domino’s rolled out a contactless delivery system where drivers drop off pizzas at customers' doors and notify them electronically. 

Alcohol delivery trends

4. Craft cocktail delivery

The craft cocktail delivery segment has transformed how consumers experience premium beverages at home. This trend combines convenience with the artisanal quality typically associated with high-end bars.

Key aspects of this trend include:

• Offering premium cocktail kits

• Providing professional mixing instructions

• Ensuring quality ingredient preservation

• Creating unique packaging solutions

Death & Co., a renowned cocktail bar, introduced cocktail kits that customers can assemble at home, including all ingredients pre-measured for premium cocktails. As long as consumers value premium at-home experiences, the craft cocktail delivery model will continue to thrive.

5. Alcohol subscriptions

The alcohol subscription market has evolved into a sophisticated segment of the delivery economy, offering curated experiences that combine convenience with discovery. Market analysis indicates that 67% of Millennials say they spend more online than in-store on Alcohol. 

Key aspects of this trend include:

• Easy online ordering

• Creating exclusive product access

• Establishing membership benefits

Winc, a wine subscription service, offers personalized wine selections based on a customer’s preferences. Subscribers can rate wines, which improves future recommendations.

And, alcohol subscription services fit the ongoing demand for convenience, discovery, and personalized experiences, positioning them for long-term growth.

6. Same-day alcohol delivery

The immediate gratification economy has extended into the alcohol delivery sector, with same-day delivery becoming an expected service standard. Regulatory changes and technological advancement have facilitated this trend.

Key aspects of this trend include:

• Optimizing local delivery networks

• Implementing age verification protocols

• Developing partnerships with local retailers

• Creating efficient inventory management systems

Some research indicates that same-day alcohol delivery services have seen a 100% year-over-year growth. Same-day alcohol delivery has proven to be a useful convenience, and as regulatory landscapes continue to adapt, this service will likely remain in demand.

Grocery delivery trends

7. Rapid grocery delivery (15–30 minutes)

The emergence of ultra-fast grocery delivery represents a significant shift in consumer expectations, though the business model continues to evolve for sustainability.

Key aspects of this trend include:

• Establishing micro-fulfillment centers

• Implementing predictive inventory systems

• Optimizing delivery radius efficiency

• Developing sustainable operational models

While rapid delivery is appealing, high operational costs and logistical challenges make it hard for companies to maintain profitability at scale. Venture capital often subsidizes the operations of these types of businesses, but there are now questions about the viability of these long-term business models.

GoPuff specializes in delivering groceries and household essentials within 30 minutes in major cities by operating its own network of micro-warehouses.

8. Grocery subscriptions

Subscription-based grocery delivery has emerged as a stable business model, offering predictable revenue streams and enhanced customer loyalty. 

Key aspects of this trend include:

• Creating flexible subscription options

• Implementing smart replenishment systems

• Developing loyalty rewards programs

• Offering customizable delivery schedules

Subscriptions are increasingly popular across industries, and grocery subscriptions tap into the convenience trend, making this a long-term model. Misfits Market offers subscription-based delivery of imperfect, organic produce that might not otherwise reach grocery store shelves, delivering weekly or bi-weekly.

9. Direct-to-Consumer (DTC) grocery delivery

The DTC grocery segment has matured into a distinct market category, offering specialized products and unique value propositions. This model has seen particular success in specialty and premium product categories.

Key aspects of this trend include:

• Building direct producer relationships

• Creating transparent supply chains

• Developing brand storytelling

• Implementing quality control systems

Thrive Market offers an online marketplace for organic and non-GMO products, delivering groceries directly to consumers without traditional store markup. And, ButcherBox delivers ethically sourced, high-quality meat directly to customers, ensuring transparency and freshness without the need to visit a grocery store. 

As consumers continue to demand more transparency and control over the products they purchase, DTC grocery delivery will likely continue to grow.

Meal kit delivery trends

10. Plant-based meal kits

The plant-based meal kit segment has expanded beyond niche status to become a mainstream offering, driven by health and environmental concerns. 

Key aspects of this trend include:

• Developing diverse plant-based recipes

• Creating protein-rich alternatives

• Implementing sustainable sourcing

Purple Carrot is a plant-based meal kit service offering vegan recipes with fresh ingredients and clear instructions, and Green Chef offers a plant-powered meal plan, using organic ingredients to craft recipes tailored for vegans and vegetarians, capitalizing on the plant-based trend.

With the growing popularity of plant-based eating, these meal kits will likely continue to thrive as more consumers seek plant-based options.

11. Semi-prepared meal kits

The evolution of meal kits toward semi-prepared components represents a strategic response to consumer time constraints while maintaining the appeal of home cooking.

Key aspects of this trend include:

• Balancing convenience with customization

• Implementing quality preservation techniques

• Creating efficient packaging solutions

• Developing fool-proof preparation instructions

Sunbasket has meal kits that come with pre-cooked proteins, like chicken and beef, allowing customers to quickly assemble fresh meals.

12. Sustainability-focused meal kits

Sustainability has become a central focus in meal kit delivery, with environmental impact influencing both operational decisions and consumer choice.

Key aspects of this trend include:

• Implementing recyclable packaging

• Reducing food waste

• Creating carbon-neutral delivery options

• Developing local sourcing networks

HelloFresh has committed to reducing food waste and using recyclable packaging in its meal kits, focusing on sustainability in the supply chain. And, Blue Apron has adopted eco-friendly packaging and offers customers sustainably sourced ingredients, appealing to environmentally conscious consumers.

As environmental concerns grow, more customers will seek meal kits with a focus on sustainability, ensuring the longevity of this trend.

Industry outlook and future developments

The food and grocery delivery landscape continues to evolve, shaped by technological advancement, changing consumer preferences, and operational innovations. Organizations that can effectively balance innovation with operational efficiency, will be best positioned for long-term success in the food and grocery delivery ecosystem.

As the industry matures, expect to see continued innovation in service models, technology integration, and sustainability initiatives.