Exciting news from our team at Playfood! We have just completed a thorough market research study in the LATAM region. The insights and data we have gathered will be incredibly valuable for anyone looking to make important decisions in the coming year 2023.
The Latin American region has seen considerable growth in the food delivery industry. Recently, there has been a spike in the number of companies offering these services, and this trend is expected to persist as more individuals become aware of the conveniences and cost-effectiveness of food delivery services.
CAGR for the forecast period (2022-2027): 9.80%
The online food delivery market in Latin America has become one of the most competitive in the world, due to an increase in the number of Internet users and the entry of new companies, and is expected to grow at a solid CAGR between 2022 and 2027. In 2021, the Latin American online grocery market was estimated to be worth an average of $5.4 billion.
Distribution of the online food delivery market in Latin America in 2022, by country
Source: statista.com
Addressing the needs of busy city dwellers
Mobile usage has grown exponentially in the past five years, giving people from all over the region access to the internet. It has grown so rapidly in the past decade that the number of LATAM mobile subscribers is gaining in the world’s most developed countries, and is expected to reach 422 million mobile subscribers, or 64% of the population, by 2025 (80% in countries like the U.S.).
The immense growth of mobile usage combined with overcrowded cities allowed food delivery startups to rise to prominence. In places where big-city dwellers commute for more than an hour each way and don’t have time to cook a proper meal or buy their weekly groceries.
Organic soy protein market value in Latin America from 2020 to 2025
By 2025, the estimated value of the organic soy protein market in Latin America is expected to rise to about 120 million U.S. dollars, an increase of 140 percent from 50 million U.S. dollars in 2020. That same year, the number of self-identified vegetarians, vegans, and supporters in Brazil was highest in the city of São Paulo.
Source: statista.com
In 2023, food delivery trends in the Latin American region are expected to be driven by the increasing demand for convenience and affordability. As more people become aware of the benefits of food delivery services, they will be more likely to use them. This will lead to an increase in the number of food delivery services in the region, as well as an increase in the variety of services offered.
Main factors that push for delivery growth:
• Smartphone Penetration: Five of the top 10 countries with the highest smartphone penetration per household in the world were from Asia Pacific and Latin America in 2020.
• High Penetration of Independent Outlets: Asia Pacific and Latin America are the regions with the highest penetration of independent outlets in the world, comprising over 80% of the world’s independent food service outlets in 2020.
• Delivery Couriers: One of the factors that makes delivery fees more accessible in these regions is the large mass of couriers available to deliver at a low price. High migration from countries with economies in crisis has made this type of gig economy grow.
• Highly Populated Cities: 50% of the world’s most populated cities belong to Asia Pacific and Latin America.
Overall, the Latin American region is expected to see a surge in the number of food delivery services in 2023. This trend is expected to be driven by the increasing demand for convenience and affordability, as well as the emergence of new technologies such as delivery robots and digital payment methods. As more people become aware of the benefits of food delivery services, they will be more likely to use them, leading to an increase in the number of food delivery services in the region.
Playfood provides businesses with a solution for their bravest delivery ideas. Cross-promo with taxi services? Millions of orders? Whatever it is, Playfood will complete the challenge.
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