Report Overview

Vietnam Online Food Delivery Market- Industry Trends & Forecast Report 2027

Vietnam online food delivery market was worth USD 523.1 million in 2020 and is further projected to reach USD 2,587.1 million by the year 2027, growing at a CAGR of 23.4% during the forecast period. The growth of the online food delivery market in Vietnam is primarily driven by convenience and accessibility. Additionally, a growing working population, driven by the expanding service sector and the increasing penetration of smartphones, are driving the demand for online food delivery services in Vietnam. Furthermore, the growth of online food delivery services, such as Uber Eats, etc., also contributes to the growth of Vietnam's online food delivery market.

Source: BlueWeave Consulting

Vietnam Online Food Delivery Market- Overview

Online food delivery services allow users to order food online through websites or apps. In addition to being convenient for customers, such services provide growth opportunities to local eateries and food joints. Orders can be placed with restaurants, food distributors, or from home kitchens. Ordering food from restaurants and making payments online is extremely popular in Vietnam, especially among the young generation. When food is ordered through online websites and apps, consumers enjoy greater transparency and convenience. Due to the ease and speed of online food delivery companies, combined with the reduced hassle and the cashback deals, these services have become very popular in Vietnam, especially among the younger population.

Vietnam Online Food Delivery Market Forecast and Trends

Growth Drivers

Economic Development and Increasing Working Population

Vietnam is among the fastest-growing economies in the world. In 2019, Vietnam's growth rate exceeded India's and China's. As the country moves towards economic growth, the number of working adult groups and working-class populations is also increasing, which in turn is anticipated to drive the Vietnam online food delivery market. Thus, the rising workload and hectic lifestyle of Millennials are contributing to the need for convenient food options, fueling the growth of the Vietnam online food services market.

Growing Smartphone Penetration

Vietnamese smartphone users top the list at 61 million, ranking Vietnam 10th worldwide. By 2025, the number of users is projected to increase to 82.15 million. With an increasing number of smartphone users, the potential consumer demographic will expand, providing restaurants and food outlet owners with an opportunity to grow their revenue by using online food ordering services. Additionally, the increase in smartphone ownership in the country is expected to spur the usage of online payment apps and wallets, further fueling growth in this market.

Restraints

Limited Acceptance of Online Food Delivery Among Local Food Joints

The popularity of online food delivery platforms is limited to smartphone users. Older people who own food joints are reluctant to move to online platforms due to biases such as fluctuating prices and heavy discounts offered by food delivery apps. Moreover, a lack of technical knowledge about online food services, the setup, online payments, and digital wallets among most restaurant and food outlet owners can significantly restrain the market's growth during the forecast period.

Impact of COVID-19 on Vietnam Online Food Delivery Market

Vietnam was among the few countries that could control the virus spread during the initial outbreak in the year 2020. Despite this, the government had to impose lockdowns and social distancing norms to curb the spread of the virus, which hindered the operations of restaurants and food outlets. This drove the restaurant owners to switch their services to online platforms, thus creating significant growth opportunities. Moreover, the growing number of work-at-home scenarios has fueled the demand for online food delivery services, especially among the working classes.

Vietnam Online Food Delivery Market - By Type

Based on types, the Vietnam online food delivery market is segmented into restaurant-to-consumer and platform-to-consumer. The platform-to-consumer segment holds the largest market share as these platforms offer an aggregate of restaurants under one roof to add to the convenience of customers. However, the restaurant-to-consumer segment also covers a significant share in the market and is projected to register substantial growth during the forecast period. This type of service is popular among global food giants, such as KFC and McDonald’s.

Vietnam Online Food Delivery Market - By Payment Type

Based on payment types, the Vietnam online food delivery market is grouped into cash on delivery and online segment. The online payment options accounted for the largest share in the Vietnam online food delivery market. The growing popularity and security of the online payment apps and digital wallets, such as VinID Pay, Airpay, Moca (Grab Platform), MoMo play a key role in propelling the country’s online food delivery services forward. These platforms launch their own in-app payment apps and partner with popular apps to offer deals and discounts to attract consumers, which drives the growth of the online payment segment.

Global Chocolate 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. Vietnam's south-central coast dominates the online food delivery market due to the presence of Ho Chi Minh City, which accounts for 22 percent of the national GDP. As a result of a high concentration of working population and smartphone users, the region’s online food delivery market is growing rapidly.

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.

The market is still flourishing and is highly fragmented and has several industry participants. Additionally, new entrants are emerging and are adopting unique marketing strategies to create brand awareness. The market players also partner with restaurants and other food joints to expand their offering to their customers. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In August 2021 - Loship, a leading Vietnamese on-demand e-commerce platform that offers one-hour deliveries for a large range of products and services, including food, ride-hailing, medicine, etc., announced to have raised USD 12 million in a pre-series C funding which was co-led by BAce Capital and Sun Hung Kai & Co. Ltd.

Scope of the Report:

By Type

• Restaurant-to-Consumer

• Platform-to-Consumer

By Channel Type

• Websites/Desktop

• Mobile Applications

By Payment Method

• Cash on Delivery

• Online

By Region

• Northwest

• Northeast

• Red River Delta

• North Central Coast

• South Central Coast

• Central Highlands

• Southeast

• Mekong River Delta

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Economic Development and Increasing Working Population
         2. Growing Smartphone Penetration
      2. Market Restraints
         1. Limited Acceptance of Online Food Delivery Among Local Food Joints
      3. Market Challenges
         1. Highly Volatile Price Structure
      4. Market Opportunity
         1. Increasing Launches of Online Food Delivery Apps
         2. Growing Number of Home-Kitchen and Ghost Kitchen
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Vietnam Online Food Delivery Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Type
         1. Restaurant-to-Consumer
         2. Platform-to-Consumer
      2. By Channel Type
         1. Websites/Desktop
         2. Mobile Applications
      3. By Payment Method
         1. Cash on Delivery
         2. Online
      4. By Region
         1. Northwest
         2. Northeast
         3. Red River Delta
         4. North Central Coast
         5. South Central Coast
         6. Central Highlands
         7. Southeast
         8. Mekong River Delta
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Vietnam Online Food Delivery Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Ha Noi
   2. Ho Chi Minh City
   3. Grab Food and Now
   4. Go-Food
   5. Baemin
   6. Bach Hoa Xanh
   7. Loship
   8. BeChef
   9. The Coffee House
   10. Mio
   11. Jollibee Vietnam
   12. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Vietnam Online Food Delivery Market Segmentation

Figure 2: Vietnam Online Food Delivery Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Vietnam Online Food Delivery Market Size, By Value (USD Million), 2017-2027

Figure 5: Vietnam Online Food Delivery Market Share (%), By Type, By Value, 2017-2027

Figure 6: Vietnam Online Food Delivery Market Share (%), By Channel Type, By Value, 2017-2027

Figure 7: Vietnam Online Food Delivery Market Share (%), By Payment Method, By Value, 2017-2027

Figure 8: Vietnam Online Food Delivery Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: Vietnam Online Food Delivery Market Size, By Type, By Value, 2017-2027

Table 2: Vietnam Online Food Delivery Market Size, By Channel Type, By Value (USD Million), 2017-2027

Table 3: Vietnam Online Food Delivery Market Size, By Payment Method, By Value (USD Million), 2017-2027

Table 4: Vietnam Online Food Delivery Market Size, By Region, By Value (USD Million), 2017-2027

Table 5: Ha Noi Financial Analysis

Table 6: Ha Noi Business Overview

Table 7: Ho Chi Minh City Financial Analysis

Table 8: Ho Chi Minh City Business Overview

Table 9: Grab Food and Now Financial Analysis

Table 10: Grab Food and Now Business Overview

Table 11: Go-Food Financial Analysis

Table 12: Go-Food Business Overview

Table 13: Baemin Financial Analysis

Table 14: Baemin Business Overview

Table 15: Bach Hoa Xanh Financial Analysis

Table 16: Bach Hoa Xanh Business Overview

Table 17: Loship Financial Analysis

Table 18: Loship Business Overview

Table 19: BeChef Financial Analysis

Table 20: BeChef Business Overview

Table 21: The Coffee House Financial Analysis

Table 22: The Coffee House Business Overview

Table 23: Mio Financial Analysis

Table 24: Mio Business Overview

Table 25: Jollibee Vietnam Financial Analysis

Table 26: Jollibee Vietnam Business Overview