The Asian food delivery market is rapidly growing. In particular, HungryPanda, an Asian food delivery firm, recently raised $130 million in funding to expand its operations. This funding has allowed HungryPanda to bring its delivery service to more countries, and become one of the leading players in the Asian food delivery sector.
In this article, we will explore the size and scope of the Asian food delivery market and the reasons for HungryPanda’s success.
Overview of Asian Food Delivery Market
The Asian food delivery market represents a lucrative opportunity for businesses today. This market has grown rapidly over the past several years and is estimated to be worth over $40 billion globally. Despite the recent economic downturn, it is expected to maintain its steady growth rate over the next five years.
The Asian food delivery market comprises various segments, including Chinese, Japanese, Indian, Pakistani, Thai and Vietnamese stores and restaurants. These restaurants offer various meals from each country’s traditional fare and other international cuisines. The growth of this sector has been fueled by increasing demand for convenience and availability of ready-to-eat meals due to busy lifestyles and changing eating habits among consumers.
This sector also encompasses online ordering platforms such as DeliveryHero, Just Eat and UberEats which offer online ordering solutions to customers – making it easier than ever to order food directly from restaurants or stores across Asia. Such platforms enable customers to access international menu options with just a few clicks on their laptops or smartphones. Additionally, delivery services like Deliveroo are revolutionising the way people purchase their meals; with services like these, customers can have their orders delivered in super-fast times directly to their doorstep or office spaces in no time!
These developments have opened up a new age of opportunities within Asian food delivery markets leading this sector’s industry players to invest in marketing initiatives for further outreach within Asia and beyond its boundaries. All these factors make this space ripe for businesses looking to capitalise on the growing demand for convenient and high quality food offerings from Asian cuisine specialists.
Size of the Asian Food Delivery Market
The Asian food delivery market has been growing exponentially in recent years. This growth is evident from the fact that HungryPanda recently closed a $130 million funding round to grow their Asian food delivery firm.
The Asian food delivery market is now a highly competitive space, and understanding just how big it is can provide insight into the potential for this space. So let’s dive into the details and examine the size of the Asian food delivery market.
Market Size in Terms of Revenue
The Asian food delivery market is estimated to be USD 92.99 billion in 2020. It is projected to reach USD 109.21 billion by the end of 2026, registering a CAGR of 3.2% over the forecast period 2021 – 2026. The global Asian food delivery market has been largely driven by rising demand for fast food and the increasing use of online platforms for ordering and delivery of these products, as well as an increase in the number of independent restaurants offering delivery services and an increase in disposable income among young people throughout Asia and the Pacific region.
In terms of revenue, China holds a significant share in the Asian food delivery market accounting for USD 50,638 million in 2020, due to rising demand for ready-to-eat meals and increasing availability of restaurant offerings in various categories including Chinese dishes and regional Chinese cuisine such as Hunan dishes, Sichuan dishes & Cantonese-style among others. Similarly, India holds a considerable share due to rapid economic growth leading to expanding customer base around major cities such as Delhi NCR, Mumbai, Bangalore & Hyderabad etc.. At the same time, Japan follows China as it is estimated to account for 17.1 % share in 2020 due to its growing urban population with high disposable incomes who opt for restaurant meals off premises that helps drive the overall revenue growth of ecosystem players such as restaurant chains & other traditional eateries using online platforms for their deliveries.
Market Size in Terms of Volume
The Asian food delivery market has seen tremendous growth in recent years. According to a recent research report by Euromonitor International, the market size of Asian food delivery services was valued at USD 75.3 billion in 2018. The same report projected that the market will reach USD 94.5 billion by 2023 with a compounded annual growth rate of 4.4%.
In terms of volume, across all categories, global delivery orders reached 823 million in 2018 and are estimated to increase 1.2 times reaching 960 million by 2023. Among these categories, online take-aways account for most of the revenues and global deliveries (74% revenues and 53% restaurants). Still, there has been considerable growth in the number of dining-in and catering services and grocery deliveries in recent years due to technological advancements such as improved authentication methods and mobile applications that offer customers more choice and convenience when ordering food online or offline.
Overall, the growing demand for convenience is driving increased demand for online as well deliveries thereby driving up competition between traditional offline eateries, catering businesses and food service providers with their digital counterparts such as Deliveroo, UberEats, Just Eat etc., hence boosting investments in digital technology offerings from restaurant owners across Asia Pacific and providing new opportunities for various stakeholders within this industry from Restaurants, Delivery Companies to Online Platforms like Amazon Fresh etc.. Therefore, this industry will likely continue to experience rapid growth over the next five years as customers increasingly embrace digital solutions when ordering meals or groceries from local restaurants or stores compared with traditional means of dining-in or take outs.
Major Players in the Asian Food Delivery Market
The Asian food delivery market has been growing rapidly. It is estimated to reach almost $17 billion by 2025.1 This growth has attracted many large and small players looking to capitalise on the industry’s potential.
Companies such as HungryPanda are leading the way with their recent $130 million raise intended to accelerate the growth of their online delivery platform.
This article will discuss the major players in the Asian food delivery market and their impact on the industry.
HungryPanda is a leading food delivery platform based in the Asia-Pacific region that connects restaurants to customers. It allows users to order delivery and takeout from thousands of local restaurants across 14 countries and territories, including Singapore, Malaysia, Hong Kong, Vietnam, Taiwan and Thailand.
Launched in 2018, HungryPanda has partnered with many of the top restaurant brands in the region, such as Famous Amos and KFC. It enables customers to enjoy various cuisine options catering to different dietary needs and tastes. Through its mobile app and website, customers can view restaurant menus across different categories – including Chinese cuisine, Japanese cuisine or Middle Eastern food – filter their search by price range or proximity to their current location.
As the only player with a presence at scale throughout the entire Asian continent representing both delivery-only operations and big chains alike, HungryPanda has established itself as one of the major players in the Asian food delivery market. With its seamless online ordering system coupled with fast order processing capabilities within 10 minutes for express orders and 45 minutes for regular orders for most regions it services within Asia Pacific region – Hungry Panda is transforming how people eat by revolutionising delivery options for an increasingly globalised population both through its convenience at lower costs but also through its well-controlled quality standards built on data insights.
Other Major Players
The Asian food delivery market is incredibly lucrative and growing globally. While well-known players such as DoorDash, Uber Eats, Grubhub, and others have established themselves as iconic brands, several other major players have gained significant market share. The following are some of the other key players in the market:
1. Just Eat: Just Eat is a London-based food delivery app with operations in 13 countries and territories worldwide, including Canada, Ireland, Sweden and more. Founded in 2001 under its former name Hungryhouse UK Ltd., Just Eat has over 17 million active users across multiple countries.
2. Deliveroo: Much like Just Eat, Deliveroo is a London-based food delivery app founded in 2013 from many European countries. It has operations in over 500 cities including Amsterdam, Barcelona and Lisbon.
3. Swiggy: Swiggy was founded three years ago but already boasts over 1 million daily orders and 3 million registered users across India’s rooftops!. In 2019 they raised 1 billion dollars from investors such as Tencent Holdings Ltd., South Korea’s Naver Corporation and Hillhouse Capital Group.
4. Postmates: Postmates operates out of many US cities offering not only restaurant delivery but also groceries and other items such as office supplies or select merchandise from partnered stores (Walmart & Target). They have boasted growth year by year with total revenues amounting to around $400 million for 2018 & 450 for 2019. Valued at USD 2 billion back in 2016 they are now seeking an IPO sweet point with their valuations hopefully hitting anywhere close to $9-$15 billion within this 2022 fiscal year according to backers Morgan Stanley & Goldman Sachs Group Inc..
5 Baidu Waimai: Baidu Waimai has been operating since 2014 due to its affiliation with the biggest internet company in China; Baidu Incorporated (also commonly known as BAT – Baidu-Alibaba-Tencent). Their service focuses solely within the boundaries of China but has made remarkable progression leading them to achieve around 6 million daily orders combined coming from areas such as Shanghai & Shenzhen making them one of China’s largest on demand Delivery Provider whilst remaining strongly reliant on customers who use mobile devices or platforms through their services since those who use normally desktops (alongside being loyal registered members) have been shrinking considerably throughout 2019 & 2020 fiscal quarters along with now being even increase since 2021 began where they can provide services ranging up until late hours which usually varies based on cities or provinces capital locations/municipalities along side areas restrictively regulated by China’s laws/official rules concerning curfew times fueled by pandemic virus COVID 19 measures taken from authorities during this current temporal context sadly afflicting humanity regardless anyone’s opinion values or common beliefs ritually shared amongst certain societies/cultural contexts globally impacted all over our modern planet worldwide for foreseeable future aspects yet still remain unknown until situation keeps becoming equalized enough to finally show recovery emblematic signs or new adaptative behavioral patterns suitable towards swift resolution procedure purposes therefore ending any livelihood affected matters regarding coronavirus rapid spread all across worldwide regions surrounding us accordingly regardless safety preventative means taken against it proactively.
HungryPanda Raises $130 Million to Grow Asian Food Delivery Firm
As more people go online for their food needs, Asian food delivery has seen a surge in demand over the past few years. This is evident from the recent news of the $130 million funding for HungryPanda, an Asian food delivery firm.
To gain insight into the drivers of the growth, we will examine various aspects such as consumer trends, technology developments, and market dynamics.
Increasing Demand for Convenience
In recent years, the demand for convenience and the increasing prevalence of e-commerce platforms in Asia have driven growth in the online food delivery market. Online ordering has enabled customers to shop conveniently from various options and order meals with minimal effort. This has further encouraged people to switch to food delivery services, increasing demand from business and residential consumers.
The growing influence of social media platforms such as Facebook, Twitter and Instagram has allowed restaurants to promote their services and gain visibility among a wider consumer base, creating new opportunities for businesses that leverage digital marketing tools. In addition, smartphone apps represent another avenue through which customers can enjoy convenient access to various cuisines and payment options.
Furthermore, with increased disposable income across many emerging Asian nations, consumers have more disposable income to spend on convenience-oriented services such as food delivery platforms. In addition, factors including rising living standards, changing dietary trends due to increasing health consciousness, growth in tourism and extended working hours have all provided additional longevity for this popular industry sector. Consequently, Asia Pacific will witness ongoing expansion over the next few years as new players enter this lucrative market.
Growing Demand for Healthy and Authentic Asian Cuisine
Demand for delivery of Asian food is growing steadily as consumers have become increasingly health-conscious and seek healthier food options. In addition to having lower levels of calories and fat, many Asian dishes also incorporate unique and more wholesome flavours than trans-fat laden fast food.
At the same time, diners are constantly exposed to various cuisines through travel, media, and the internet. As a result, customers not only want variety but also expect good quality with reasonably priced meals when they order delivery Asian cuisine. This trend has driven the demand for freshness, authenticity, and convenience in ordering these meals.
To capitalise on this growing demand, many Asian restaurants have begun to offer delivery services through 3rd party partners or their direct-to-consumer channels. By doing this, these restaurants can reach a wider customer base without sacrificing the quality of their offerings by focusing on cooking methods that do not compromise flavour or texture. This includes marinating meats longer in seasonings and making sauces from scratch with fresh ingredients. Additionally, improved supply chain technology has enabled them to track orders precisely while ensuring fast delivery times.
Challenges Facing the Asian Food Delivery Market
The Asian food delivery market is growing faster than ever, with the recent news of HungryPanda raising $130 million to expand their reach across Asia. However, it is not without its challenges.
This article will cover the obstacles faced by the Asian food delivery market and its potential opportunities.
High Delivery Costs
The Asian food delivery market is experiencing significant growing pains as the demand for delivery increases. Most notably, these challenges include high delivery costs, difficulty finding drivers and the increased competition in the market.
High Delivery Costs: As the popularity of food delivery services grows, delivery fees are continuously on the rise. Delivery fees are often determined by restaurant location and distance between restaurant and customer. In addition, many restaurants charge extra for credit card payments, or even a minimum order required to cover delivery costs. All this equates to an overall high cost of delivering food orders compared to dining out.
Difficult Driver Recruitment: Driver recruitment is a major challenge facing the industry as many have realised that demand exceeds supply for drivers signing up to work with individual companies. This shortage of available drivers has led some companies to offer higher wages, extra bonuses or other incentives such as discounts and gift cards for signing up with a given company.
Increasing Competition: With more players entering this industry and technology disrupting the form of services such as apps and websites predicting where orders should go next or being able to accept orders from numerous different restaurants simultaneously, there is increased competition within this space which leads to decreased profits from individual competitors. This type of competitive environment makes it difficult for companies who previously had success sustaining themselves in this space due to their first-mover advantage when entering new markets.
Low Customer Retention
Despite rapid growth, customer retention remains a major challenge for companies in the Asian food delivery industry. Low customer retention is primarily attributed to the large variability in experience quality from restaurant to restaurant. Food orders from one restaurant may meet high standards, while those from another may be of a low quality – thus making it difficult to gain customer loyalty and retain customers in the long term.
Moreover, companies rely mainly on aggressive discounting campaigns and referral incentives to gain customers, leading to lower margins and low loyalty levels over time. Operational challenges such as inadequate delivery personnel and messiness during food delivery can also lead to customer dissatisfaction and attrition of loyal patrons from the platform. In addition, customers also tend to be more forgiving with local players due their closer connections with traditional food vendors, making it difficult for new entrants such as startups to identify gaps where they can provide better customer experiences than local players.
By addressing these issues through new technologies and improved operational measures, companies in the Asian food delivery market can create stronger customer bonds that will benefit them in the long run.