Food delivery services in Vietnam have experienced rapid growth in recent years, providing customers with convenient access to a wide variety of cuisines. In this article, we will explore the opportunities and challenges present in Vietnam’s thriving food delivery sector and unveil the potential for investment in this dynamic market.
The Growing Food Delivery Market in Vietnam
Explore the rapid growth and increasing popularity of the food delivery market in Vietnam.
Vietnam has witnessed a significant growth in its food delivery market in recent years. With a market size of US$3 billion in 2022, this sector shows no signs of slowing down. The demand for online meal orders saw a surge in the second quarter of 2023, with revenue projected to reach new heights. By 2027, the market is anticipated to be valued at approximately US$3.41 billion.
Key players such as GrabFood and ShopeeFood dominate the market while keeping competition intense. However, other players like Baemin and GoFood are gaining traction with their unique offerings. This booming market presents a promising opportunity for both local and foreign businesses looking to invest in Vietnam.
Leading Food Delivery Platforms in Vietnam
Get to know the top players and their respective market shares in Vietnam's food delivery sector.
The two major contenders in Vietnam’s food delivery market are GrabFood and ShopeeFood. GrabFood currently holds the majority market share with its existing ecosystem and large fleet of drivers. ShopeeFood, backed by SEA Group, is in close competition, rapidly gaining ground with its improved services and nationwide availability in 16 provinces and cities.
Other Noteworthy Players
Baemin and GoFood, although holding smaller market shares, are making significant strides. Baemin's laser focus on food delivery and recent partnership with Selex Motors demonstrate its determination to expand its presence in Vietnam. GoFood, backed by technology unicorn Gojek, benefits from a vast network of drivers, allowing for faster delivery times to ensure customer satisfaction.
Emerging Market Trends in Vietnam's Food Delivery
Discover the current trends shaping the Vietnamese food delivery market towards healthier eating habits and increasing order value.
Vietnamese Embracing Healthier Eating Choices
Vietnamese consumers are leaning towards healthier alternatives in their choice of meal options. GrabFood reports an increasing demand for healthy meals and plant-based food options. The consumption of healthy meals every two to three days has become a norm among surveyed consumers.
Increase in Order Value and User Base
The online food delivery market has experienced significant growth in terms of order value and user base. In Hanoi alone, the number of users ordering food on platforms such as GoFood and Gojek saw a substantial increase. Furthermore, users spend more on food and grocery delivery, with kitchen orders experiencing a 30 percent increase between 2021 and 2022.
Trending Food Orders in Vietnam
Uncover the popular food choices and notable breakfast trends among Vietnamese consumers.
Popular food choices vary across platforms, but some traditional Vietnamese dishes like chicken rice, spring rolls, rice noodles, and noodles remain top favorites. In Q1/2022, GoFood observed a significant increase in breakfast orders, indicating a growing trend of ordering breakfast through delivery apps.
The local preferences for beverages include the ever-popular milk tea, grilled pork rice, fried chicken, banh mi, and Vietnamese coffee.
Challenges in Vietnam's Food Delivery Market
Discover the challenges that industry players face in Vietnam's highly competitive food delivery market.
Rise in Competition
GrabFood and ShopeeFood are fiercely battling for supremacy in Vietnam's food delivery market. However, Baemin and GoFood have proven that new players can disrupt the competition. They have seen remarkable growth and managed to capture the attention of users through strategic marketing and attractive promotional programs.
Sustainability Concerns
Food delivery apps often rely heavily on promotional offers and discounts to attract new users, leading to unstable revenue sources. To overcome this challenge, companies are shifting their focus towards new revenue streams such as advertising and subscription services.
Opportunities for Foreign Businesses
Explore the potential opportunities for foreign firms aiming to expand their presence in Vietnam's food delivery market.
Despite the rapidly expanding food delivery market in Vietnam, foreign businesses have the potential to tap into this fast-growing sector. With Vietnam's gross merchandise value falling well below the regional average, there is ample room for growth and investment. Furthermore, with a positive outlook for Vietnam's F&B industry and the country's rapidly developing digital economy, entering the food delivery market presents a golden opportunity for foreign firms.
Future Trends in the Food Delivery Sector
Discover the key innovations and emerging trends that shape the future of the food delivery services sector.
Dining-in Through Delivery Apps
Super apps in Southeast Asia, like Grab, are adapting to consumer preferences by offering in-restaurant dining features. This allows users to browse restaurant menus and purchase dining vouchers with exclusive discounts within the app. The convenience of exploring dining options, reading reviews, and even booking transportation to the chosen restaurant all in one platform enhances the overall dining experience for customers.
Eco-friendly Deliveries with Electric Vehicles
Envisioning a greener future, food delivery platforms like Be Group and Baemin Vietnam are exploring the usage of electric vehicles for their delivery operations. Collaborations with companies specializing in electric cars and motorcycles provide these platforms an opportunity to reduce carbon emissions, leading to a more sustainable and eco-conscious approach to food delivery.
Conclusion
The food delivery services sector in Vietnam offers tremendous investment opportunities and growth potential. The market has witnessed rapid development, with key players like GrabFood and ShopeeFood dominating the industry. Moreover, emerging trends such as healthier eating habits and increasing order values provide avenues for businesses to thrive in this competitive landscape.
Foreign firms can take advantage of Vietnam's expanding digital economy and the positive outlook for its F&B industry. With the market still below the regional average in terms of gross merchandise value, there is ample room for growth and revenue generation.
Looking to the future, innovative features like in-restaurant dining through delivery apps and eco-friendly deliveries using electric vehicles are poised to shape the food delivery sector. Adapting to these trends and addressing challenges around competition and sustainability will pave the way for success in Vietnam's food delivery market.
FQA :
What is the market size of Vietnam's online food delivery market?
Vietnam's online food delivery market reached a significant milestone of US$3 billion in 2022, with further growth projected in upcoming years.
Who are the key players in Vietnam's online food delivery sector?
The dominated players in Vietnam's food delivery market are GrabFood and ShopeeFood. Baemin and GoFood are also gaining traction with their unique offerings.
What are the emerging trends in Vietnam's food delivery services sector?
Emerging trends include a shift towards healthier eating habits and an increase in order values. Vietnamese consumers are embracing plant-based options and opting for healthy meals frequently.
What are the challenges faced by businesses in Vietnam's food delivery market?
Competition is one of the major challenges, with GrabFood and ShopeeFood battling for market dominance. Ensuring sustainability and a steady revenue stream is also crucial in this market.
What are the opportunities for foreign firms in Vietnam's food delivery market?
Foreign firms have opportunities to tap into Vietnam's fast-growing food delivery market. With a positive outlook for the F&B industry and the country's developing digital economy, there is immense potential for growth and investment.
