In the shadow of the dynamic digital era, Thailand’s thriving food delivery market teeters on the precipice of a new phase, as forecasts predict a fractional contraction of 0.6% this year. Kasikorn Research Center (K-Research) estimates this would pull the overall market value down to 86 billion baht, breaking stride in the industry’s otherwise rampant growth trajectory. A complementary downturn of 11.3% in food order volumes signifies a broader shift in consumer attitudes.
Several interconnected factors are at the helm of this downward trend, as uncovered by K-research. The post-pandemic world has reshaped the consumer landscape with a heightened awareness of spending habits and an amplified emphasis on value for money, as the cost of living spirals upward. Additionally, the ubiquitous hassles encountered by customers during the food ordering process remain unresolved, further stunting the sector’s growth.
K-Research data indicates a noteworthy expansion of 8.6% in the average food order cost in 2023, putting it squarely in the spotlight compared to 2022. A targeted survey carried out by the research institute presented an interesting trend: Although digital food delivery remained popular among 44% of the respondents, the order frequency had notably dipped. Echoing the urge for cost-efficient options, a significant number of users have now pivoted to home-cooked meals or eat-outs, steering clear of the ancillary costs that come with online food delivery.
Meanwhile, 42% of the respondents doubled down on their digital food delivery usage level, while the remaining 14% manifested a clear aversion towards any future engagement with it. A deep-seated angst towards inflated food costs and skyrocketing delivery fees seems to be the common antagonist dissuading users from these platforms. Unsurprisingly, perceived inconsistencies in the food quantity delivered versus charged, and discrepancies between the advertised food imagery and actual delivered items have only added fuel to the fire.
To tamp down these recurring grievances, K-Research prompts food delivery platforms to get all parties involved in the supply chain on the same page, facilitating an improved end-customer experience. The team found a staggering 80% of survey participants used more than one food delivery application, constantly swapping between them for effective price checks.
Zooming in on the user demographics, Gen Y users comprised the lion’s share of the user base at 58%, with Gen X tailing at 28%. Voices from this user collective resonated a call to action towards service diversity within a single application, solidifying their daily needs into a one-stop digital hub.
The burgeoning competition between platforms and the mercurial user behaviour patterns are thrusting food delivery service providers towards bespoke strategies. Proactive initiatives like synergizing internally owned databases with restaurant partners could unlock potent solutions, tailoring offerings to individual lifestyle demands. A strategic integration of advanced technology can potentially revolutionize the user experience, driving demand and pushing the digital food delivery ecosystem in Thailand into a resonant resurgence, as noted by Bangkok Post.
On a cheerful note, Line Man Wongnai, an illustrious food delivery platform, reported consistent upturns in food delivery orders from January 2022 to April 2023. In the outskirts of Bangkok and adjoining regions, food order volume shot up by 25%, and the new user base swelled by 27%. On the flip side, provincial areas charted a growth of 17% in food delivery orders alongside a modest surge of 10% in new user registration.
Line Man Wongnai is leveraging this upward momentum to consolidate its recurring revenue streams, primarily targeting the enhancement of Point-Of-Sale (POS) solutions for food restaurants. Through the acquisition of FoodStory, a stand-out start-up specializing in restaurant POS systems, Line Man Wongnai sets its sights on augmenting its merchant offerings, scaling food delivery possibilities in luxury restaurants to ambitious new heights.
Be First to Comment