Grocery Delivery - Philippines | Statista Market Forecast

In 2024, the Grocery Delivery market in the Philippines is projected to reach a revenue of US$2.48bn.
It is expected to show an annual growth rate (CAGR 2024-2029) of 13.79%, resulting in a projected market volume of US$4.74bn by 2029.
The Retail Delivery market in the Philippines is projected to have a market volume of US$2.09bn in 2024.
In global comparison, China is expected to generate the most revenue in the Grocery Delivery market, with US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market in the Philippines is projected to amount to US$130.90 in 2024.
By 2029, the number of users in the Grocery Delivery market in the Philippines is expected to reach 26.1m users.
The user penetration in the Grocery Delivery market in the Philippines will be at 15.9% in 2024.
The demand for online grocery delivery services in the Philippines has surged due to the COVID-19 pandemic.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

The demand for grocery delivery services in the Philippines has been on the rise in recent years.

Customer preferences: Customers in the Philippines are increasingly turning to grocery delivery services due to the convenience it offers. With the growing number of urban dwellers and the increase in traffic congestion, customers are finding it more convenient to order their groceries online and have them delivered to their doorsteps. Additionally, the COVID-19 pandemic has further accelerated the adoption of online grocery delivery services as customers seek to limit their exposure to crowded places.

Trends in the market: The grocery delivery market in the Philippines has been witnessing a surge in competition. Both local and international players have been entering the market, offering a range of services from same-day delivery to subscription-based grocery delivery services. This has led to increased innovation and improved services as players seek to differentiate themselves from the competition.Another trend in the market is the increasing popularity of mobile apps for grocery delivery services. Customers are finding it more convenient to order groceries using their smartphones, and players in the market have been investing heavily in developing their mobile apps to meet this demand.

Local special circumstances: The Philippines is an archipelago with over 7,000 islands, which presents a unique challenge for grocery delivery services. Players in the market have had to develop innovative solutions to overcome this challenge, such as partnering with local stores and using motorbikes for delivery in areas where larger vehicles cannot access.

Underlying macroeconomic factors: The Philippines has a growing middle class, which has been a key driver of the demand for grocery delivery services. Additionally, the country has a relatively young population, with a high percentage of tech-savvy millennials who are comfortable with using online services.In conclusion, the grocery delivery market in the Philippines is a growing industry driven by customer convenience and innovation. With the increasing competition and the adoption of mobile apps, players in the market will need to continue to innovate and differentiate themselves to stay ahead in this rapidly evolving market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.