SUNDAY, April 21, 2024
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Food delivery businesses face slump in demand next year: KResearch

Food delivery businesses face slump in demand next year: KResearch

The research arm of Kasikornbank (KBank) expects the food delivery business sector in Thailand to slow down next year in line with the situation in other countries as the Covid threat slowly ebbs.

A KResearch Centre study, released on Monday, said that the food delivery business in Thailand next year would be valued at around 81 billion to 86 billion baht next year, a contraction of 0.8% to 6.5% compared to the value this year.

The centre said the value would still be much higher than before the Covid pandemic.

KResearch said its study from early this year until now had found that about 37 per cent of its survey group had reduced the frequency of food delivery service since the improvement in the Covid-19 situation and as people have started returning to work.

KResearch said single-dish and basic foods remain the biggest group of foods ordered via food delivery services.

It said the categories of foods and drinks that faced a slowdown were drinks and bakery because employed people prefer to buy them on their own since their return to work.

KResearch advised operators of food delivery services to diversify their operations and allow customers to hire their riders to buy goods from supermarkets and convenience stores, or try to expand their services to the provinces to be able to sustain their business.

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