The home delivery service industry in the Asia Pacific constitutes half of the market around the world. This is because of the continent’s size and the large presence of fast food companies that offer home meal delivery services as part of their service. In 2015, the total sales value of the continent was doubled compared to the second rank market which is North America. Industry leaders all agreed that the Asia Pacific region is the fastest-growing and has the most potential for food delivery services. You can check Sun Basket Review & 50% off Coupon Code to know more about the growth of these companies.
China Tops the Asia Pacific Market
The People’s Republic of China leads all Asia Pacific nations in terms of home delivery services. In 2015, the total market value reached as high as $20 billion which represents a 55% increase compared to the previous year. The nation’s food and delivery services are dominated by home-grown companies such as Ele.me and Meituan Waimai. There are also other mobile app-based delivery services that are sharing the market such as Baidu’s food delivery service, Baidu Waimai, Dianping.com, and Taodiandian.
It is interesting to note that international fast food chains such as McDonalds and KFC once dominated the delivery service market in the country. But with the support of big companies such as Alibaba and Tencent, the so-called home-grown companies slowly take over the market because of cheaper service and distinct foods. In 2015, Alibaba made another additional investment of $1 billion dollars to a local company called Koubei.
Competition in Southeast Asia is Building Up
Unlike the Chinese market that is dominated by local companies, it is the other way around in Southeast Asia. The global food delivery service companies have inched their way on this part of the continent. The German-based Foodpanda has been pursuing expansion in the region and has already bought local competitor Delivery.com. In Hongkong, Foodpanda’s total home delivery value reached $400 million in 2015, a 5% growth compared to the previous year.
Due to the relatively small market in the region, these companies have been doing innovations and incentives to customers to boost their sales. Foodpanda, for example, tested drone delivery in Singapore in order to cut down the time of delivery. In countries such as the Philippines, Vietnam, and Indonesia, a home delivery market is expected to grow fast in the coming years. However, local market conditions will be a key factor for these global companies to dominate the market.
The Untapped Market of India
With its massive population, it is surprising that not a single global food delivery service made the mark in the promising country of India. This country has the biggest potential in food delivery service and has already reached $2.9 billion in total market value. This figure is expected to grow by 12% per year until 2020. This makes the country the second largest market behind China.
As of today, the lack of dining out culture in the country poses a minor threat in the industry. However, the increasing number of workers and the industry becoming popular will make the demand for home delivery service to increase expectedly. As technology and innovation improve in the country, the demand for home delivery service can now keep up with India’s massive population.
Home delivery services in the Asia Pacific are the best in terms of market share all over the world. This is because of the massive population of countries such as China and India and the promising market of Southeast Asia.