Vietnam Online Food Delivery Market Growing at a Lightning speed: Projected to Grow at the CAGR of 23.4% by 2027

Published | 04 December 2021

Due to the increasing penetration of smartphones and the advantages offered by the country’s online food delivery companies, the Vietnam online food delivery market is expected to grow at a high CAGR. The growth of the market is also facilitated by rapid economic development, expanding younger demographics, and an increasing working population….

A recent study, conducted by the strategic consulting and market research firm, BlueWeave Consulting revealed that Vietnam online food delivery market was worth USD 523.1 million in 2020. According to the study, the market is estimated to grow at a CAGR of 23.4%, earning revenue of around USD 2,587.1 million by the end of 2027. Due to the increasing penetration of smartphones and the expanding younger demographic using food ordering apps, the online food delivery market in Vietnam is growing rapidly. Additionally, the growing working population in the country directly influences the dependence of this demographic on online food delivery services to meet their dietary requirements. Additionally, due to the growing working population in the country, people in this demographic depend more heavily on online food delivery services for their diets. However, the highly volatile price system and the stigma associated with online food delivery may discourage adoption among restaurants and other food outlets, sabotaging the market's growth.

Increasing Launches of Online Food Delivery Apps is Boosting the Vietnam Online Food Delivery Market

With significant growth potential for online food delivery in Vietnam, the global players are increasingly launching their services in this country to tap on the unexplored opportunities. For instance, FoodPanda launched its services back in 2012 and emerged as the major food ordering service platform. Now the market is captured by leading players such as ShopeeFood, Baemin, Grab Food, Bach Hoa Xanh, etc. Global food giants such as McDonald’s, KFC, Lotteria, etc., have also launched their own food delivery apps in Vietnam. The availability of a wide range of applications gives a wide variety of options to customers to choose from and prevents monopoly in the market.

Growing Number of Home-Kitchen and Ghost Kitchen is Anticipated to Drive the Growth of Vietnam Online Food Delivery Market

The growth of online food delivery platforms has enabled home-kitchens and ghost kitchens to flourish as they provide a platform for customers and sellers to engage. Ghost kitchens and home kitchens have always been popular in Vietnam and are now gaining popularity as well as an opportunity to expand their customer base. In addition to offering minimal overhead costs, delivery-only services offered by home kitchens and ghost kitchens provide a variety of benefits to the owners. These services are getting increasingly popular among homemakers who are able to establish their business with limited capital investment.

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Vietnam Online Food Delivery Market - By Channel Type

Based on channel types, the Vietnam online food delivery market is segmented into websites/desktop and mobile applications. The mobile applications segment account for the largest market share as it offers various benefits, including prompt delivery, online payments, cash on delivery, and live order tracking. Additionally, online food delivery service providers offer appealing deals to promote their mobile applications, including free delivery on the first or first five orders. On the other hand, the websites/desktop segment also hold a substantial share of the market, as a result of the growing number of online food delivery apps that encourage customers to order through their preferred websites rather than downloading apps.

Vietnam Online Food Delivery Market - Regional Insights

Geographically, the Vietnam online food delivery market is segmented into Northwest, Northeast, Red River Delta, North Central Coast, South Central Coast, Central Highlands, Southeast, and Mekong River Delta. Among these, the south-central coast region dominates the Vietnam online food delivery market. However, the Northwest and north-central coast are also estimated to emerge as potential growing regions for the online food delivery market with the increasing disposable income and changing consumption patterns in these regions. The improving logistics sector and distribution channels are anticipated to fuel the Vietnam online food delivery market in the forecast period.

Impact of COVID-19 on Vietnam Online Food Delivery Market

The Vietnam online food delivery market witnessed significant growth opportunities after the COVID-19 pandemic outbreak. Through aggressive contact tracing and rapid testing, the country managed to keep the infection rate to a minimum. Although the pandemic had little effect on the country, the government had to impose a lockdown to prevent further infection. Restricted operations led to huge losses for restaurants and other food outlets. In response, they opted to switch their services to online platforms that provide food delivery to meet social distancing norms while ensuring the safety of their workers and customers.

Vietnam Online Food Delivery Market - Competitive Landscape

The leading players in the Vietnam online food delivery market are Ha Noi, Ho Chi Minh City, Grab Food and Now, Go-Food, Baemin, Bach Hoa Xanh, Loship, BeChef, The Coffee House, Mio, Jollibee Vietnam, and other prominent players.

Vietnam’s flourishing online food delivery market is highly fragmented and has several industry participants. The number of new entrants is growing, and they are implementing unique marketing strategies to create brand awareness and increase sales. Moreover, to expand their offerings, market players partner with restaurants and other food joints. In addition, competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., are common in this market.

Don’t miss the business opportunity of the Vietnam online food delivery. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Vietnam online food delivery market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of Vietnam online food delivery market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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