After extremely strong growth was recorded in food and drink e-commerce in 2020, 2021 saw the category continue to boom. The main reason for the strong growth registered in the category during the year was the imposition of social distancing restrictions on the population of Malaysia in response to the Delta wave of the COVID-19 pandemic.
The presence of the two most prominent food delivery apps in Malaysia, Foodpanda and Grabfood, increased in Malaysia during 2021 as a wider variety of foodservice players jumped on the mobile e-commerce bandwagon in an effort to reach more customers. This becomes an incredibly important consideration during the quarantine lockdown that was postponed population during the second and third quarters of the year, when restaurants and other consumer foodservice establishments were not allowed to offer dine-in service.
One of the major reasons that food and drink e-commerce has been performing so well in Malaysia in recent years is the increased visibility that has flowed from more intensive advertising and marketing activity. Advertising for food and drink e-commerce platforms has been seen more frequently in both the online and offline realms, with Happy Fresh’s aggressive marketing online campaigns a classic example.
Slow growth is expected to be seen in food and drink e-commerce over the forecast period and this is set to be the result of the higher base from which the category is set to be rising after several years of very strong sales growth and, moreover, the receding influence of the COVID-19 pandemic. The strict social distancing measures that supported growth in food and drink e-commerce towards the end of the review period are set to be relaxed substantially during 2022 and it is inevitable that value will be abandoned altogether at some point during the forecast period.
As mentioned above, the main reason for the huge surge seen in the popularity of food and drink e-commerce towards the end of the review period, the influence of the COVID-19 pandemic is not expected to apply during the forecast period. Nonetheless, demand for food and drink e-commerce is expected to continue rising, mainly due to the convenience that shopping online for groceries represents for busy urban professionals.
The forecast period is expected to see a complete retraction of the social distancing measures that were enacted to curb the spread of the COVID-19 virus among the population. Thus, the quarantine lockdowns that required pubs, bars and nightclubs to remain completely closed for extended periods and the regulations that forced them to operate at less than full capacity when they were allowed to open are expected to be completely removed.
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Understand the latest market trends and future growth opportunities for the Food and Drink Internet Retailing industry in Malaysia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Internet retailing sales of food and drink (all packaged and fresh food and drink (hot drinks, soft drinks and alcoholic drinks).
See All of Our DefinitionsThis report originates from Passport, our Food and Drink Internet Retailing research and analysis database.
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