Online Food Delivery

The Online Food Delivery market in the Philippines is projected to reach a revenue of US$4.55bn by 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 10.38%, resulting in a projected market volume of US$7.46bn by 2029.
In the Grocery Delivery market, a revenue growth of 19.2% is anticipated in 2025.0.
The Grocery Delivery market is projected to have a market volume of US$2.48bn in 2024.
When compared globally, China is expected to generate the most revenue, with US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to amount to US$130.90 in 2024.
In the Grocery Delivery market, the number of users is expected to reach 26.1m users by 2029.
The user penetration in the Grocery Delivery market is expected to be at 17.8% in 2024.
The online food delivery market in the Philippines is experiencing rapid growth due to the increasing demand for convenience and variety in dining options.

Definition:

Online Food Delivery refers to the intersection of ordering groceries and prepared meals online. Orders are typically placed through an app or website and delivery times vary.

Structure:

The Online Food Delivery market contains the user and revenue development of two different delivery service solutions: (1) Meal Delivery and (2) Grocery Delivery. Included are services that deliver prepared meals and food ordered online for direct consumption (Meal Delivery) and non-prepared food and beverage products, household, and personal care products (Grocery Delivery). Meal delivery includes the delivery of meals carried out directly by restaurants (Restaurant Delivery) and online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves (Platform Delivery). Grocery Delivery consists of fresh, nonprepared products delivered from supermarkets or retailers where delivery is scheduled (Retail Delivery), Delivery that is under 3 hours and operates dark stores or own warehouses (Quick Commerce), and prepared fresh ingredients to be prepared at home, typically offered through a subscription service (Meal Kit Delivery).

Additional Information:

Revenue figures are the gross merchandise value (GMV), defined as the total sales dollar value for merchandise/food sold through the Online Food Delivery marketplace. User and revenue figures represent B2C services.

Meals and groceries ordered online that are directly delivered by the restaurant, retailer, or platform no matter if ordered via a platform (e.g. Delivery Hero, Instacart) or a restaurant/retailer website (e.g. Domino's, Walmart.com)
Online meal and grocery order and delivery both carried out by a platform (e.g. Deliveroo, Grab, Flink)

Phone orders
Click & collect Grocery orders
Ready-to-eat meals

The food delivery market in the Philippines has been rapidly growing in recent years, with the rise of online platforms and the increasing demand for convenience among consumers.

Customer preferences: One of the main reasons for the growth of the online food delivery market in the Philippines is the changing preferences of customers. Consumers are increasingly seeking convenience and speed in their daily lives, and online food delivery platforms provide a solution to this demand. Additionally, the COVID-19 pandemic has further accelerated the growth of the market, as more people are staying at home and relying on food delivery services.

Trends in the market: The online food delivery market in the Philippines is becoming increasingly competitive, with both local and international players entering the market. This has led to a wider variety of food options and services being offered to consumers, as well as competitive pricing and promotions. Additionally, there has been a trend towards healthier food options, with more consumers seeking out nutritious meals and plant-based options.

Local special circumstances: One unique factor in the Philippine market is the prevalence of small, independent food vendors and street food stalls. While many of these vendors do not have the resources to offer delivery services themselves, online food delivery platforms have provided a way for them to reach a wider audience and increase their sales. This has also led to a rise in "virtual kitchens," where restaurants and vendors can operate solely for delivery purposes.

Underlying macroeconomic factors: The growth of the online food delivery market in the Philippines is also influenced by macroeconomic factors such as the country's young and tech-savvy population, as well as its growing middle class. Additionally, the rise of e-commerce and digital payments has made it easier for consumers to order food online and pay for it electronically. However, the market is not without its challenges, including the high cost of delivery and the need for reliable logistics infrastructure in order to ensure timely and efficient deliveries.

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.