Restaurant Delivery - Philippines

Philippines

Highlights

The Restaurant Delivery market in the Philippines is projected to reach a revenue of ₱US$885.30m by 2024.
This represents a significant growth opportunity for the industry.
Furthermore, it is expected that the market will continue to expand with an annual growth rate (CAGR 2024-2029) of 4.65%, resulting in a projected market volume of ₱US$1.11bn by 2029.
In terms of user base, it is anticipated that the number of users in the Restaurant Delivery market will reach 14.7m users by 2029.
This indicates a growing demand for food delivery services in the country.
User penetration, which measures the percentage of the population using these services, is expected to increase from 10.6% in 2024 to 11.5% by 2029.
The average revenue per user (ARPU) is projected to amount to ₱US$69.86.
This figure reflects the amount of money spent by each user on restaurant delivery services.
When comparing the global market, it is worth noting that United States is expected to generate the most revenue in the Restaurant Delivery market, with an estimated amount of ₱US$36.95bn in 2024.
This highlights the dominance of the American market in this industry.
Additionally, it is interesting to observe that South Korea is projected to have the highest user penetration rate in the Restaurant Delivery market, with a projected rate of 44.8%.
This suggests a strong adoption of food delivery services South Korea.
Overall, the Restaurant Delivery market in the Philippines presents significant growth potential, with increasing revenue, user base, and user penetration.
These trends are in line with the global market and highlight the growing importance of food delivery services in the country.
The restaurant delivery market in the Philippines is experiencing a surge in demand due to the country's growing urban population and increasing preference for convenience.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The food delivery industry in the Philippines has been growing rapidly in recent years, with the emergence of new players and the expansion of existing ones. This growth can be attributed to several factors such as changing customer preferences, technological advancements, and local special circumstances.

Customer preferences: With the fast-paced lifestyle of Filipinos, more and more people are opting for food delivery services instead of dining out. Convenience and time-saving are the primary factors that drive customers to order food online. Moreover, the COVID-19 pandemic has further accelerated the growth of food delivery services as people have become more cautious about dining out.

Trends in the market: The food delivery market in the Philippines is becoming more competitive as new players enter the market. The trend of cloud kitchens is gaining popularity, with more restaurants opting to operate through delivery-only kitchens. This allows them to reduce overhead costs and focus on delivering quality food to customers. Another trend is the integration of technology in the food delivery process, such as the use of mobile apps, chatbots, and AI-powered systems.

Local special circumstances: The Philippines is an archipelago of more than 7,000 islands, and the delivery infrastructure in some areas is not as developed as in the major cities. This presents a challenge for food delivery companies to reach customers in remote areas. Additionally, the country has a large population of overseas Filipino workers who rely on food delivery services to send food to their families back home.

Underlying macroeconomic factors: The Philippines has a young and tech-savvy population, with a high penetration of smartphones and internet usage. This has made it easier for food delivery companies to reach customers and offer their services. Moreover, the country has a growing middle class with higher disposable incomes, which has led to an increase in demand for food delivery services. The COVID-19 pandemic has also played a role in the growth of the food delivery market, as people have been forced to stay at home and rely on delivery services for their daily needs.In conclusion, the food delivery market in the Philippines is expected to continue its growth trajectory in the coming years. With changing customer preferences, technological advancements, and local special circumstances, food delivery companies will need to adapt and innovate to stay ahead of the competition.

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.