Study: 62% expect to spend more on food delivery apps in 2024

Food delivery platforms such as Grab, foodpanda and Deliveroo have put an array of cuisines at the fingertips of consumers with 68% of Singaporeans using it as part of their daily life and 80% expecting to use food delivery services more this year.

In fact, food delivery platforms have evolved to become a way of life, according to a Censuswide survey done of 1,000 Singaporeans by Deliveroo. The survey also highlighted that 87% say that they are able to make more of their spare time when they use delivery platforms.

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When it comes to why consumers use these platforms, the main reasons cited in the report include not having time to prepare meals and not wanting to cook with both reasons being cited by 58% of respondents.

In terms of expenditure, Singaporeans are spending more on food delivery platforms with average spending seeing an increase to SG$118 per month from SG$108 per month in 2022. The average spend is likely to increase even more this year with 62% of consumers saying they expect to spend more on food delivery in the next 12 months compared to last year.

Interestingly, 38% of customers are willing to pay more for healthier food while 35% will spend more on customisable food orders, showcasing a customer’s need for personalisation and healthy ingredients.

Beyond the plate

Other than providing meals to doorsteps, demand on delivery apps for other offerings such as ordering groceries, gifting and in-app donations have been on the rise, with 53% preferring to get non-food supplies on the apps.

While 51% of respondents will consider a grocery delivery through food delivery apps over going to the supermarket, 49% prefer getting their groceries delivered in general. More specifically 47% have attributed being able to save time as a motivating factor to use food delivery apps for groceries.

Average monthly spend on groceries through these apps currently sits at SG$111 with 50% of respondents expecting to spend more in the next 12 months.

Food delivery apps have also expanded their on-demand offerings to include gift shopping such as being able to send flowers, hampers and balloons within a time crunch. In fact, 55% of respondents prefer this to purchasing gifts in-store especially when they do need something urgently or do not have time to buy these gifts themselves.

As food delivery apps also provide customers with the ability to donate to charity, 88% of respondents said that they are supportive of this in-app feature.

“Going beyond ready-to-eat meals, we see how customers are increasingly turning to food delivery platforms for other goods and services that add value to various aspects of their lives,” said Jason Parke, general manager, Deliveroo Singapore.

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