Online food delivery refers to the process of ordering food from a food cooperative or restaurant through a mobile app or webpage. These apps and web pages provide filters and different paying methods, such as cash on delivery, debit/credit card, net banking, etc., catering to the need of the consumers. Besides this, various companies allow their consumers to create an account for frequent and convenient ordering. Advantages offered by online food delivery such as easy and fast ordering, less hassle, fewer misunderstanding and miscommunication, minimum human interaction and cashback offers have made it popular in Vietnam, particularly among the younger population. According to the latest report by IMARC Group, titled “Vietnam Online Food Delivery Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the Vietnam online food delivery market is expected to grow at a CAGR nearly 23%, exihibit a double-digit growth during the forecast period 2019-2024.
Vietnam Online Food Delivery Market Drivers/Constraints:
- A major factor catalysing the growth of the online food delivery market in Vietnam is its convenience and easy accessibility. With a growth in digital technology, the food delivery market in the country is being reshaped. Food ordered through online websites and apps provide customers convenience and a greater level of transparency. Through various online food delivery modes, consumers can compare the menus and prices of various restaurants. This enables them to order food according to their taste and preference at a better price than the conventional method of food ordering.
- Various food delivery applications and websites in Vietnam are offering numerous food options to their consumers. This include Vietnamese Cuisines, Western Cuisines, and South Asian Cuisines among others. Availability of such a wide range of food options caters to the food preferences of different consumers, thereby driving the overall demand of online food delivery services in the country.
- Enhanced efficiency of restaurants is another major driver of the online food delivery market in Vietnam. The online orders make the day to day operations more efficient for a restaurant. The time employees use to receive orders through the telephone is reduced and this increases the time employees have to focus on dine-in customers. Moreover, the chances of human errors due to miscommunication are also reduced when an order is made.
- Through online ordering and delivery system, a complete database of the customers can be created which helps in identifying recurring customers, their preferences and repeated orders. The previous ways of ordering food included many problems such as time constraints, different accents of people, disturbance over a phone call, etc. due to which restaurants are compelled to cancel or abandon the order. However, with the online food delivery options available, these challenges can be overcome.
- As a restaurant or a franchise of a food product are hesitant to launch their mobile application as it may incur additional cost for development, installation, maintenance, and marketing of the applications, they prefer to collaborate with various food delivery companies.
- Retailers have also been drawn to the country’s relatively young consumer population. The 15 to 64 age group accounts for the majority of the overall population of Vietnam and are a key demographic to spur the growth in the online food delivery market.
On the basis of order method, the market has been segmented into mobile app and website. Amongst these, mobile app represents the largest segment as it is faster than websites and provides numerous advantages such as easy user interface and saved customer profiles.
Based on the cuisine, the Vietnamese cuisine is the most popular segment. It is followed by Western cuisine, Italian cuisine and pizza, and South Asian cuisine.
On a geographical front, Southern Vietnam represents the biggest market. Other major regions include Northern Vietnam and Central Vietnam.
The Vietnam online food delivery industry is concentrated in nature with the presence of a handful of players. Some of the leading players operating in the market are:
- Grab Food
This report provides a deep insight into the Vietnam online food delivery market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the online food delivery market in any manner.
Key Questions Answered in This Report:
- How has the Vietnam online food delivery market performed so far and how will it perform in the coming years?
- What are the key regions in the Vietnam online food delivery market?
- Which are the popular cuisines in the Vietnam online food delivery market?
- What are the major order methods in the Vietnam online food delivery market?
- What are the various stages in the value chain of the Vietnam online food delivery market?
- What are the key driving factors and challenges in the Vietnam online food delivery market?
- What is the structure of the Vietnam online food delivery market and who are the key players?
- What is the degree of competition in the Vietnam online food delivery market?