Malaysian Food Delivery Industry Essay Sample

Food Delivery Industry in Malaysia Essay Sample

This essay sample is about the Malaysian food delivery industry. The food delivery industry is a booming business in Malaysia. It’s not hard to see why – people are too busy nowadays to cook their meals, and they want the food delivered right to their doorstep. But what does it take for your Food Delivery Services in Malaysia to be successful?

In this essay, Malaysian students will learn an overview of the food delivery industry, How fast is the food delivery industry growing in Malaysia?, the Major players of the food delivery industry of Malaysia, the Malaysian food delivery industry key facts, industrial analysis, and Food delivery industry statistics Malaysia, etc.

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Food delivery industry in Malaysia overview

The food delivery industry in Malaysia is quite lucrative, and this has made it a key target for many businesses. UberEATS is associated with Grab, which provides an app-based platform to order food from restaurants to make deliveries. Other players in the market include Foodpanda, DeliverEat, and HungryHouse, amongst others.

The number of Malaysian consumers who purchase foods online increased from 8% in 2014 to 38% by 2017. And these numbers are projected to be much higher when Malaysians start embracing e-commerce technology more widely via smartphones and laptops/PCs – poised for a growth of 391%. In addition, 68% of them pay for their orders online with credit cards or third-party payment systems such as Paypal.

The rapid rise of the e-commerce industry in Malaysia has made things easier for food delivery services to reach out and promote themselves – especially through social media channels like Facebook, Instagram & Twitter. Many independent websites provide reviews on restaurants; it’s up to you whether or not you want your restaurant featured there.

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Is the food delivery industry growing in Malaysia?

Yes, The food delivery industry in Malaysia is growing at an astonishing rate with independent operators increasing by more than 300% within the last 10 years.

The food delivery industry has grown exponentially with 44% of Malaysians between 16-24 years old consuming takeaways every week. With an increasing number of young people entering the workforce, norms are changing and it is now considered normal for workers to order their lunch online or be provided with trolleys of microwaveable ready meals.

Coupled with this trend there has also been a huge increase in demand for frozen foods as time-saving convenience now trumps traditional home cooking methods. As well, entrepreneurs are taking advantage of this global shift in lifestyle changes by launching initiatives all over the country to bring vegan, organic, and gluten-free foods to the masses.

How fast is the food delivery industry growing in Malaysia?

Recent research found that the food delivery industry is growing at an incredible rate. The growth was fueled by convenience, speed, and access to a variety of cuisine.

Fast-casual restaurants are also not unaffected by the trend as they find themselves facing increased competition from companies like Deliveroo or UberEATS which enable consumers to order food with ease on their website or mobile application where it will be delivered in less than 30 minutes. It doesn’t come without its downsides.

For this service, customers need to pay more and the restaurant must comply with a higher level of professionalism when handling orders. All major players in this industry end up paying higher prices for ingredients (especially meat) due to purchasing power with such large numbers of deliveries.

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What are the major players in the food delivery industry of Malaysia?

The major players in the food delivery industry of Malaysia are:

1. FoodPanda – Operates in Malaysia and has expanded to Thailand, Saudi Arabia, and Pakistan.

2. UberEATS – Operated in Malaysia and Singapore

3. Hapag-Lloyd Express Germany (HLX) International LCC – Operated in Indonesia and Vietnam

4. Nestle’s Oishi Foods Sdn Bhd – Has 12 outlets in the Malaysian capital Kuala Lumpur where it provides deliveries ranging from $6 for a single meal or $10 for 2 meals or 3 meals with free delivery for orders above RM100 at any one time

5. AG Sakai Foodstuff Ltd’s MisterJapan Inc.- Owned by AG Sakai Corporation Limited, their business covers international deliveries for catering, edibles, and beverages.

As you can see there are many players in the food delivery industry, especially with Malaysia’s population of over 30 million people; this means more customers for these services to serve.

Malaysian food delivery industry key facts

The Malaysian food delivery industry is currently in development and key facts for the sector include:

  • Delivery apps such as FoodPanda and Deliveroo have proven to be popular among Malaysians.
  • There’s an increased demand for home deliveries, which will continue the growth of the industry in years to come.
  • The UK and USA are Malaysia’s biggest food destinations so far. However, it is expected that China will overtake these places by 2020. This is because importers from there have been buying more raw materials from Malaysian exporters, which has made it a lucrative destination for them. In 2016 alone, Malaysia exported over 15 billion worth of goods to China alone.

Food delivery industry analysis

The food delivery industry is in the growth stage. It is predicted that by 2022 it will be worth $200 billion, which is a 41% increase from 2016.

Food delivery companies, specifically startups like UberEats are taking advantage of America’s notorious work-from-home culture and getting people to order their next meal straight from their couch. Why not save money with Taco Bell or get fancy with Yelp/Eat24? You don’t have to leave the house! And you can make someone else do your grocery shopping for you which Google searches for “grocery store” corroborate Americans’ low self-care standards when buying groceries (have kids who hate vegetables?).

Food delivery industry statistics Malaysia

The following information is an excerpt from a 2015 article written by The Malaysian Reserve.

“Online food delivery services in Malaysia have seen a phenomenal growth of 350% in the last four years, with Malaysians now spending around RM439 million on food from these companies every year, according to figures from industry players.”

In addition to this, revenue has also been much higher than before- at 2 billion Malaysian ringgit in 2014 compared to just 1 billion ringgit in 2012. In numbers that’s a jaw-dropping 435% increase! We can only imagine how much it’ll be when we get up-to-date statistics. There was even an 850% increase in revenue between 2013 and 2014!

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