Food and Grocery Deliveries Expected to Grow

A report done by the Fitch Solutions Country Risk and Industry Research has mentioned that delivery services for necessities significantly grew during the COVID-19 pandemic after the government issued lockdowns to contain the spread of COVID-19. This forced retailers to offer delivery options for their customers so they can remain competitive.

Food and grocery deliveries are predicted to increase more despite the economy opening up with the easing of restrictions as urbanization and disposable income are expected to support their expansion.

“We believe that these dynamics have been key to the development of the sector in Asia, without which, would have taken far longer to develop,” says the report.

The report also mentioned that grocery and food delivery service providers are still trying to build up their service and transport network which was a big aspect that deterred their strong expansion of e-commerce before the pandemic.

“Post-Covid, industry players have continued to refine their offerings, while the number of first-time users will continue to use the service, as they acknowledge its convenience and delivery service will become more efficient and user-friendly,”  according to the report.

Even with inflation continuing to increase and averaging at an expected 5.6% this year, the growth of disposable income will overtake this says the report.

“This means consumers in the Philippines will see their disposable incomes increasing in real terms. We believe that real growth in income levels of Filipino consumers compliments the retail formalization trend in the Philippines, as consumers gain more access to modern MGR (mass grocery retail) as their propensity to spend rises,”

Source: Philippine News Agency