Report Overview

Growing demand for convenience in busy lifestyles, surging adoption of smartphones and mobile internet, expanding culinary choices and restaurant diversity, and rising popularity of promotions and discounts on food and beverages are expected to drive the Singapore Online Food Delivery Market during the forecast period between 2024 and 2030.

Singapore Online Food Delivery Market – Industry Trends & Forecast Report, 2030

Singapore Online Food Delivery Market size was estimated at USD 621.78 million in 2023. During the forecast period between 2024 and 2030, the Singapore Online Food Delivery Market size is projected to grow at a CAGR of 8.33% reaching a value of USD 965.56 million by 2030. A prominent driver of the market is the increasing reliance on smartphones and the desire for convenient food options. This trend is further fueled by enhanced network connectivity and ongoing innovations in the software utilized for online food delivery applications. Other market drivers include the continuous progress in technology and the rise of cloud kitchens have become prominent trends. Cloud kitchens offer a cost-effective solution, reducing setup costs and operational expenses like employment taxes, staff, furnishings, utilities, and insurance. As a result, several restaurants are embracing cloud kitchens to align with the dynamic shifts in market trends.

Online Food Delivery Market – Overview

Online meal delivery is a convenient service allowing customers to place food and beverage orders through the Internet via a mobile application or website. With increased internet accessibility, customers can explore diverse cuisine options and precise pricing for their favorite foods. Providers of online meal delivery offer convenient location delivery and timely service options to accommodate the busy schedules of the general population. The market encompasses transactions for online meal delivery services and related offerings, mainly catering to families. Meals may be ready-to-eat or require specific preparation before immediate consumption. Online Food Delivery services fall into two categories: restaurant-to-consumer and platform-to-shopper. The former fulfills valid orders directly from the respective restaurant, while the latter does the same for affiliated eateries.

Singapore Online Food Delivery Market

Growth Drivers

Variety of Cuisines and Restaurants

Singapore’s evolving F&B landscape, driven by increased disposable income and fast-paced lifestyles, has witnessed a notable surge in online food ordering. Cloud kitchens, bolstered by enhanced packaging technology and an increasing demand for convenience, have become a lucrative investment. The changing consumer habits, such as a preference for diverse cuisines and a surge in organic food options, highlight the vibrant variety in Singapore’s culinary landscape. The adoption of food delivery apps, representing a significant shift in supply chain management, adds to the diversity and accessibility of dining options, making it an opportune time for investors in the thriving Singaporean food industry.

Deepening Penetration of Smartphone and Mobile Internet

The surge in online food delivery in Singapore can be attributed to the widespread adoption of smartphones and increased internet usage. The COVID-19 pandemic prompted a significant shift in consumer behavior, with safety concerns leading to a rise in delivery orders. Beyond the pandemic, the convenience offered by online platforms, coupled with the diverse range of cuisines accessible through the internet, has fueled the continuous growth of the food delivery market. As the country continues to witness a boom in smartphone usage, the food delivery sector is leveraging the trend to thrive, with projections indicating substantial market expansion over the forecast period.

Challenges

High Delivery Costs and Price Sensitivity

Despite the remarkable expansion of the online food delivery market in Singapore, substantial delivery costs present a notable impediment. The market encounters difficulties due to consumer price sensitivity, with a preference for more budget-friendly options. The high expenses associated with delivery services influence consumer decisions, posing a barrier to ongoing market growth. It is imperative for service providers to find a harmonious balance between delivery charges and consumer affordability in order to overcome this constraint and promote sustained growth within the competitive landscape.

Impact of Geopolitical Tensions on Singapore Online Food Delivery Market

The Singapore Online Food Delivery Market is impacted by geopolitical tensions in several ways. Economic stability, contingent on geopolitical stability, fosters investor confidence and positively affects consumer spending. South East Asian tourism, a major driver for the food service industry in Singapore, is vulnerable to geopolitical events, impacting tourist numbers and subsequently altering the demand for Online Food Delivery services. Regulatory changes resulting from geopolitical shifts can significantly impact operations, while currency fluctuations may affect the costs of sourcing internationally. Supply chain disruptions influenced by geopolitical tensions pose challenges in maintaining quality and variety. Consumer confidence, linked to geopolitical stability, affects spending habits and Online Food Delivery demand. Singapore's diplomatic relationships influence international business partnerships, impacting the entry or expansion of global platforms. Navigating this requires vigilance, adaptability, and diversifying supply chains.

Singapore Online Food Delivery Market

Segmental Coverage

Singapore Online Food Delivery Market – By Business Model

By business model, the Singapore Online Food Delivery Market is divided into Order-focused, Logistics-based, and Restaurant-specific segments.

Singapore Online Food Delivery Market – By Type

Based on type, the Singapore Online Food Delivery Market is split into Restaurant-to-Consumer and Platform-to-Consumer segments. The platform-to-consumer segment holds a higher share in the Singapore Online Food Delivery Market by type. It primarily involves web-based delivery services, facilitating customers to order meals from affiliated restaurants. Consequently, the responsibility for food delivery often does not fall on the restaurants themselves. Instead, the platform assumes control of the entire delivery process in such cases, distinguishing it from the restaurant-to-consumer model.

Singapore Online Food Delivery Market – By Channel Type

On the basis of channel type, the Singapore Online Food Delivery Market is split into Websites/Desktop and Mobile Applications segments. The mobile applications segment holds a higher share in the Singapore Online Food Delivery Market by channel type. Accessible through mobile applications, online food delivery platforms are user-friendly, offering easy downloading on smartphones and a diverse array of options. With the increasing sales of smartphones, this segment is poised to experience significant growth during the forecast period.

Singapore Online Food Delivery Market – By Payment Method

By payment method, the Singapore Online Food Delivery Market is bifurcated into Cash on Delivery and Online segments. The online segment holds a higher market share and is expected to maintain its dominance by payment method over the forecast period. Hospitals maintain various forms of online food delivery to cater to diverse needs, with the selection of devices and procedures contingent upon the patient's condition and underlying health conditions.

Competitive Landscape

Major players operating in Singapore Online Food Delivery Market include Deliveroo, Eat App, Foodpanda, Chope, GrabFood, Honestbee, Oddle, WhyQ, and Zomato. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2024 - Deliver.sg, a long-distance delivery platform   based in Singapore, acquired Indian Mobility Lifestyle Platform BusyBee for SGD 500,000, aiming to fortify its presence in Asian and Middle Eastern markets. The strategic move is expected to enhance operational efficiency for BusyBee and aligns with Deliver.sg's commitment to its Delivery as a Service (DAAS) model. The company also invests SGD 250,000 each in HighRices and HomeRadius, emphasizing innovation and community building in the Asian market.

Scope of the Report

By Business Model

• Order-focused

• Logistics-based

• Restaurant-specific

By Type

• Restaurant-to-Consumer

• Platform-to-Consumer

By Channel

• Websites/Desktop

• Mobile Applications

By Payment Method

• Cash on Delivery

• Online