Philippines Online Food Delivery Market

Philippines Online Food Delivery Market Size and Share:

The Philippines online food delivery market size was valued at USD 4.34 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 10.33 Billion by 2033, exhibiting a CAGR of 10.11% from 2025-2033. The Philippines online food delivery market share is expanding, driven by the increasing adoption of digital payment portals like credit cards that facilitate smooth transactions and minimize the necessity for cash, along with the growing local production of food products, which allows cloud kitchens and restaurants to provide a wider range of meals at competitive rates.

The rising adoption of sustainable packaging is impelling the market growth in the Philippines. As more people are becoming aware about plastic waste and environmental issues, food businesses are turning to biodegradable, compostable, and reusable packaging. Restaurants and cloud kitchens employ paper containers, wooden cutlery, and plant-based packaging to reduce plastic pollution. Delivery platforms support this trend by encouraging partner restaurants to utilize sustainable materials. Besides this, people prefer brands that prioritize eco-friendly practices, making green packaging a marketing advantage. Some businesses offer incentives like discounts for customers who return reusable containers. With stricter government regulations on plastic utilization and increasing awareness among the masses, sustainable packaging is becoming an important factor in food delivery, helping businesses to attract more eco-conscious individuals while minimizing waste.

The expansion of subscription-based services is offering a favorable Philippines online food delivery market outlook. Platforms offer subscription plans that provide perks like free food delivery, exclusive discounts, and priority service. These plans attract frequent users who want to save money while enjoying their favorite meals. Additionally, restaurants are launching their own meal subscription services, offering set menus for daily or weekly delivery. This is especially popular among busy professionals, students, and health-conscious individuals looking for hassle-free eating options. Subscription models also help food businesses to maintain a steady user base while ensuring regular orders. People benefit from better deals while restaurants and delivery platforms see higher customer retention. As more individuals look for budget-friendly and convenient dining solutions, subscription-based services continue to grow.

Philippines Online Food Delivery Market Trends:

Rise of digital transformation

The increasing digital transformation is fueling the market growth in the country. As per the information given on the official website of the World Bank Group, the Board of Executive Directors at the World Bank invested EUR 268.22 Million (USD 287.24 Million) in financing for the Philippines Digital Infrastructure Project. This initiative seeks to enhance climate-resilient, secure, and inclusive broadband connectivity nationwide, benefiting over 20 Million Filipinos. Consequently, more restaurants and food businesses are going digital, using mobile apps, websites, and cloud kitchens to reach more individuals. Food delivery platforms employ artificial intelligence (AI) and data analytics to personalize recommendations, speed up orders, and improve people’s experiences. Additionally, digital payments and credit cards make transactions seamless, reducing the need for cash. Faster internet and smartphone adoption also make it easier for individuals to order food items anytime. Moreover, restaurants depend on digital marketing, social media, and automated order systems to attract more users.

Growing demand for healthier and specialty food product options

Diseases like obesity, diabetes, and heart problems are increasing in the Philippines due to unhealthy food choices. According to the data provided on the official website of the Philippines Statistics Authority, from January to August 2024, ischemic heart diseases were the most prominent cause of death, with 60,253 instances representing 19.8 percent of the overall fatalities across the country. Cerebrovascular diseases were third in ranking with 30,552 documented cases, making up 10.0 percent of overall fatalities. As a result, more people are looking for healthier and specialty food item options. Individuals prefer organic, gluten-free, vegan, and keto-friendly meals, leading restaurants and food businesses to adapt their menus. Platforms feature sections for healthy food products, making it easier to find nutritious meals. Besides this, smoothie bowls, plant-based dishes, and low-carb alternatives have become popular, especially among health-conscious people. Meal prep services offering balanced diets are also expanding online.

Increasing food production

The rising food production is impelling the Philippines online food delivery market growth. As per the information given on the official website of the US Department of Agriculture (USDA), more frugal consumer spending was expected to result in a 3% increase in food manufacturing sales in the Philippines in 2024. Large scale cultivation aids in enhancing the availability of fresh ingredients and different meal options. As local farms and food manufacturers develop more goods, restaurants and cloud kitchens can offer a wider variety of dishes at competitive prices. This allows food delivery platforms to expand their menus, giving customers more choices. More local food businesses are also joining delivery apps, bringing unique and affordable meals to online users. With better food supply, restaurants can maintain quality while keeping up with the high demand.

Philippines Online Food Delivery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Philippines online food delivery market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on platform type, business model, and payment method.

Analysis by Platform Type:

• Mobile Applications
• Website

Mobile applications offer convenience and user-friendly experiences. Most people prefer using apps for quick access to a wide variety of restaurants. These apps provide features like real-time tracking, easy payment options, and personalized recommendations based on past orders. With smartphones being the primary device for many Filipinos, mobile apps are the go-to platform for food delivery. They are designed for fast and on-the-go ordering, making them popular among busy urban dwellers and younger individuals.

Websites are an important platform for food delivery in the Philippines, especially for those who like ordering from a desktop or laptop. Many delivery services offer full-functioning websites where customers can browse menus, place orders, and track deliveries. Websites cater to a significant portion of the market, particularly for users who are working from home or prefer not to use mobile apps. Moreover, they incorporate features, such as payment integration and restaurant search filters.

Analysis by Business Model:

• Order Focused Food Delivery System
• Logistics Based Food Delivery System
• Full-Service Food Delivery System

The order focused food delivery system is popular in the region where platforms emphasize taking orders and connecting users with restaurants. These platforms allow customers to browse menus, place orders, and make payments easily. In this section, the delivery and logistics are handled by third-party riders. This model is cost-effective for businesses since it focuses only on the ordering process and leaves the actual delivery and restaurant operations to external partners.

The logistics based food delivery system focuses more on the delivery process where platforms manage the distribution and use third-party restaurants to supply the food items. These services handle the full delivery process, ranging from picking up the food products to delivering it to the customers. This system is flexible, allowing businesses to team up with a variety of local restaurants without needing a full infrastructure. Individuals benefit from quicker delivery times and broader food choices with this model.

The full-service food delivery system integrates ordering and delivery, providing end-to-end services. Platforms not only take orders but also have partnerships with restaurants, handle food item preparation, and manage the delivery process. These systems offer more control over the food product quality and delivery speed, ensuring a seamless customer experience. It further appeals to people seeking a highly reliable and convenient service. Full-service platforms also provide exclusive menus and customizations.

Analysis by Payment Method:

• Online Payment
• Cash on Delivery

Online payment is a growing trend in the country. People prefer paying digitally through alternatives, such as credit and debit cards, electronic wallets, and bank transfers for ease and security. These methods are especially popular among tech-savvy users who value fast and cashless transactions. Online payments also streamline the ordering process, reducing the need for cash handling. Many platforms offer discounts or loyalty rewards for customers who employ online payment methods, encouraging more people to adopt this convenient option for their food orders.

Cash on delivery remains a preferred payment method for many customers in the Philippines, especially for those who are not comfortable with online payments or do not have access to digital banking. This method is common in more rural areas and among older demographics. It provides a sense of security, as customers pay only when they receive their food. As per the Philippines online food delivery market analysis, cash on delivery still plays a significant role in ensuring accessibility and convenience for a wider range of users in the market.

Regional Analysis:

• Luzon
• Visayas
• Mindanao

Luzon is the largest and one of the most populated regions in the Philippines, driving a high demand for online food delivery services. Metro Manila, in particular, has numerous food delivery platforms operating in the area. People in urban centers prefer the convenience of ordering from a wide variety of restaurants, from local favorites to international chains. Luzon’s strong internet penetration and higher disposable income contribute to the market growth.

The Visayas region comprises popular cities like Cebu and Iloilo. Here, food delivery platforms are expanding their reach. Younger and tech-savvy users and busy professionals in urban centers employ these channels. Additionally, delivery services cater to local tastes, with a focus on regional delicacies and fast food product chains.

Mindanao is a developing market for online food delivery, with cities like Davao and Cagayan de Oro leading the way. Platforms are entering the region, as demand rises. Individuals in urban areas enjoy ordering food from local eateries, fast food chains, and international brands. Moreover, the adoption of online food delivery sites is increasing with improved internet access and a younger population familiar with mobile apps.

Competitive Landscape:

Key players in the market work on providing convenient platforms to meet the high Philippines online food delivery market demand. These companies offer a wide range of restaurant options, ranging from fast food to local delicacies, making them popular among urban dwellers. Big platforms also bring added value through promotions, discounts, and loyalty programs, encouraging frequent use. They employ advanced technology for efficient delivery tracking and payment processing, which improves the user experience. Additionally, these platforms have expanded their services by teaming up with local restaurants and cloud kitchens, increasing variety. With modern marketing strategies, strong customer support, and a focus on quick and reliable delivery, these key players are making online food delivery systems more accessible and convenient for Filipinos across different regions. For instance, in August 2024, Foodpanda, the prominent online food and grocery delivery service, launched a curated menu option called ‘Meal for One’ in the Philippines. This latest service features individual meal choices from multiple partner restaurants, all conveniently compiled in one location, with delivery charges starting at just PHP 15. This initiative across the region aims to offer enhanced convenience and lower costs to Foodpanda app users.

The report provides a comprehensive analysis of the competitive landscape in the Philippines online food delivery market with detailed profiles of all major companies.

Latest News and Developments:

• December 2024: GRAB Philippines, a mobility platform, teamed up with Red Planet Hotels to introduce Grab Food Lockers, a contactless and self-serve delivery system for their hotel guests. To easily collect their orders, guests will get a quick response (QR) code through the Grab app, which will open the specified lockers. They intend to address worries about lost deliveries or their orders being wrongly taken by other guests.
• October 2024: Foodpanda Philippines partnered with Mobile Legends: Bang Bang (MLBB), MobaPay, and Antom, to grant GCash users access to special MLBB and Foodpanda vouchers and offers via A+ Rewards. Throughout the promotional phase, GCash users can take advantage of discounts reaching 56% on n-game skins and diamonds of MLBB, as well as savings of up to PHP 100 on the delivery purchases of Foodpanda.
• August 2023: Prisoners at the New Bilibid Prison (NBP) in Muntinlupa City can receive food via online delivery apps. According to NBP Supt. Angelina Bautista, this is achievable via laptops utilized for e-dalaw, enabling inmates to request their relatives to arrange food for them and manage the delivery with prison guards.
• June 2023: Dingdong Dantes, the famous actor and director, established a new start-up named Dingdong. It has recently established a strategic alliance with another Filipino start-up named RiderKo. The collaboration seeks to create a fully Filipino-powered all-in-one platform that delivers straightforward and convenient transaction solutions for customers and business merchants, aiming to advance the local delivery service sector. The platform will additionally include Dingdong Eats, allowing customers to easily order food for delivery or pick up at the store.
• May 2023: Foodpanda launched its ‘pandaPatrol- Hub on Wheels’ to enhance support and interaction with its delivery riders across the country. This initiative aims to enhance rider satisfaction, boost engagement for both riders and the company, and showcase the Bamboo Rewards, the brand’s program for rewarding riders.
• April 2023: Grab Philippines aims to broaden its food delivery service to additional major cities in the Philippines in response to the rising demand. Tagbilaran City in Bohol is one of the locations that Grab is considering for its food delivery service launch.

Philippines Online Food Delivery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Philippines online food delivery market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Philippines online food delivery market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Philippines online food delivery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.