Food delivery apps have revolutionized the way people order food and have become an essential part of the modern food industry, allowing consumers to view comprehensive menus and order virtually whatever they desire from local restaurants, cafes, or other food outlets and have it delivered to their doorstep.
The pandemic contributed to the growth of food delivery apps through increased demand for delivery, closure of dine-in restaurants, convenience, and safety concerns, and food delivery apps have only continued to become more popular since then, with the highly competitive Malaysian food delivery market projected to grow by 14.28% in the coming years. Some of the major players include GrabFood, foodpanda, DeliverEat, and Bungkusit. These apps have been expanding their services in Malaysia, partnering with more local restaurants, and offering a range of promotions and discounts to attract more customers – but what are the statistics behind all this bustling activity in the industry?
Food Delivery App Usage In The Past 3 Months
Looking back from the 2nd half of 2021 to the 1st half of 2022, online food delivery apps were an up-and-coming trend in Malaysia, with Malaysians continuing with their habits of ordering online after the apps got their initial boost in usage during the pandemic. As the country steadily reopens and recovers from the effects of the pandemic, we see that the trend of using delivery apps is slowly dropping, going to an all time low of 29% in Q1 2023.
Upon a closer inspection, the uptake of delivery apps may be seasonal too – where Q2 and Q4 (in 2022) recorded spike in usage; Q2 and Q4 are generally inline with festive seasons such as Ramadan, year-end holiday seasons where Malaysians are in the mood of ‘feasting’, hence the upwards trend we are seeing.
Types of Food Delivery Apps Used
In terms of the types of delivery apps used, Malaysians are much more inclined to use 3rd party delivery apps such as Grab and foodpanda, compared to the merchant’s own delivery apps, such as those provided by McDonald’s and Domino’s Pizza. Considering how these platforms tend to offer more promotions and rewards to attract consumers to use them in addition to having a wider range of meals to choose from, this seems the more obvious choice. Overall, 3rd party delivery apps usage has risen as high as 91% in the 1st half of 2022.
Meanwhile, merchant’s delivery apps are generally less commonly used, but have managed to maintain usage at around 60% through 2022 despite 3rd party delivery apps seeing a downward trend which could be due to enhanced loyalty programs.
Demographic of Food Delivery App Users
Delivery app users have maintained a similar demographic throughout the different time periods since the 2nd half of 2021. Historically, residents of the Klang Valley make up a majority of users at a total of 37%. As these areas face the most traffic, just going out to the restaurant for a meal could take a fair bit of time, so food delivery services provide an efficient and practical alternative.
When it comes to the age group of delivery app users, the Millennials take the cake for being the most frequent users, comprising 39% of the total users. Notably, married consumers (58%) will opt for food deliveries considering cooking for a family is more time-consuming than cooking for a single person.
Food Delivery Apps Used
Grab and foodpanda dominate within the 3rd party delivery app space, maintaining 64% and 63% in Q1’23. Despite the downward trend faced by many players in the market, DeliverEat cements itself at 3rd place with 20% usage in Q1’23.
When it comes to merchant’s delivery apps, it is no surprise to see KFC, McDonald’s, and Pizza Hut occupying the top 3 spots given they are the largest Quick Service Restaurants (QSRs) in Malaysia. At the same time, Nando’s is continuing to gain quite a bit of traction since Q3’21, going up to 29% in Q1’23. Not to be left behind, beverage brands such as tealive and ZUS coffee also have a fair share of the market.
The Average Spend Per Order
The average spending per order on food delivery apps has increased slightly over time, starting off at RM45.57 in 3Q’2021 and reaching a high of RM58.16 by 4Q’2022.
The average spend has seen a recent drop in 1Q’2023 down to RM47.78, although this remains consistent with the average spend of about RM48 throughout the past 2 years.
Top 10 Types of Food Ordered
In 1Q’23, fast food is significantly more popular than all other food options ordered via delivery app (65%), followed by Chinese food at 33% and Malay food at 27%. The popularity of fast food could be driven by a combination of convenience, taste, marketing, and consistency.
Overview of Fast Food Delivery
Looking at the demographic of consumers who prefer ordering fast food from delivery apps, users tend to be from Generation Z, Millennials, and Upper M40. Fast-food delivery often occurs towards lunchtime, generally the busiest time of the day when most office workers are allowed out for lunch resulting in traffic jams and packed food outlets.
Overview of Chinese Food Delivery
Those who ordered Chinese food tend to be in their mid 20s – late 30s, females, PMEB, and Chinese. The peak period for ordering Chinese food is usually during key meal periods of lunch and dinner time.
Overview of Malay Food
Malay food delivery tends to be ordered by those who are in their 40s – mid 50s, B40, and Malays. The typical peak period to get Malay food is skew towards dinner time. Of the 3 top foods ordered online, spend on Malay food is by far the highest at RM50 plus (vs RM40 plus for other food types).
Food delivery apps have become increasingly important in today’s fast-paced world. Overall, the food delivery app market in Malaysia is highly competitive, with various local and international players vying for market share. The market is projected to continue to grow in the coming years, driven by the increasing demand for food delivery services due to benefits such as convenience, time-saving, a wide range of options, and contactless delivery. Most notably is how delivery apps are able to support local businesses by connecting them to a larger pool of consumers.
For more information regarding food delivery app trends in Malaysia or any other enquiries, feel free to contact us at: theteam@oppotus.com.
