Food delivery market in Southeast Asia expands further 30%

Total gross merchandise value for food delivery in Southeast Asia hit a total value of $15.5 billion last year, a 30-per cent increase from the $11.9 billion it grew to in 2020, reaching another all-time high, according to a report by Singapore-based tech venture advisory Momentum Works.

The company’s latest annual “Food Delivery Platforms in Southeast Asia” report (download requires registration) revealed that growth in 2021 was slower after 2020’s annual surge of 183 per cent as a result of lockdowns amid the Covid-19 pandemic, but represents a shift in habits by consumers.

While Indonesia, Thailand and Singapore remained the region’s largest food delivery markets, Thailand and Malaysia posted the highest year-on-year growth – a reflection of the consumption power in these countries despite challenges posed by the pandemic. Vietnam, on the other hand, experienced minimal growth, likely due to strict Covid-19 lockdowns which impacted food delivery operations.

Grab, Foodpanda and Gojek are leading the market

Despite an increasingly competitive market, Grab, Foodpanda and Gojek retained their positions in 2021. Grab is estimated to have contributed 49 per cent of the region’s food delivery value, closing the year at $7.6 billion. Foodpanda contributed 22 per cent, recording $3.4 billion in sales. Gojek is estimated to have ended the year with $2 billion in food delivery sales, making up 14 per cent of the region’s gross merchandise value. Key players and their market share  breakdown by country include:

“2021 confirmed that the pandemic-induced spike in food delivery demand is here to stay. Food delivery is an attractive market especially with e-commerce stagnating,” said Jianggan Li, chief executive officer and founder of Momentum Works.

“As players expand into more new cities and services, and the restaurant industry becomes more digitally-enabled, we anticipate continued growth of food delivery well into 2022,”he added.

Expansion towards grocery delivery

With regards to industry trends, prolonged Covid-19 gave technology companies new stimulus to expand into food delivery, with ShopeeFood scaling from Vietnam to three new markets, and new players such as AirAsia Food and Traveloka Eats entering the sector.

Major platforms also expanded into on-demand groceries, including Grab, Gojek, Foodpanda and Lineman Wongnai, leveraging their respective delivery infrastructure and customer base to tackle a much bigger total addressable market, the report found.



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Total gross merchandise value for food delivery in Southeast Asia hit a total value of $15.5 billion last year, a 30-per cent increase from the $11.9 billion it grew to in 2020, reaching another all-time high, according to a report by Singapore-based tech venture advisory Momentum Works. The company’s latest annual “Food Delivery Platforms in Southeast Asia” report (download requires registration) revealed that growth in 2021 was slower after 2020's annual surge of 183 per cent as a result of lockdowns amid the Covid-19 pandemic, but represents a shift in habits by consumers. While Indonesia, Thailand and Singapore remained the...

Total gross merchandise value for food delivery in Southeast Asia hit a total value of $15.5 billion last year, a 30-per cent increase from the $11.9 billion it grew to in 2020, reaching another all-time high, according to a report by Singapore-based tech venture advisory Momentum Works.

The company’s latest annual “Food Delivery Platforms in Southeast Asia” report (download requires registration) revealed that growth in 2021 was slower after 2020’s annual surge of 183 per cent as a result of lockdowns amid the Covid-19 pandemic, but represents a shift in habits by consumers.

While Indonesia, Thailand and Singapore remained the region’s largest food delivery markets, Thailand and Malaysia posted the highest year-on-year growth – a reflection of the consumption power in these countries despite challenges posed by the pandemic. Vietnam, on the other hand, experienced minimal growth, likely due to strict Covid-19 lockdowns which impacted food delivery operations.

Grab, Foodpanda and Gojek are leading the market

Despite an increasingly competitive market, Grab, Foodpanda and Gojek retained their positions in 2021. Grab is estimated to have contributed 49 per cent of the region’s food delivery value, closing the year at $7.6 billion. Foodpanda contributed 22 per cent, recording $3.4 billion in sales. Gojek is estimated to have ended the year with $2 billion in food delivery sales, making up 14 per cent of the region’s gross merchandise value. Key players and their market share  breakdown by country include:

“2021 confirmed that the pandemic-induced spike in food delivery demand is here to stay. Food delivery is an attractive market especially with e-commerce stagnating,” said Jianggan Li, chief executive officer and founder of Momentum Works.

“As players expand into more new cities and services, and the restaurant industry becomes more digitally-enabled, we anticipate continued growth of food delivery well into 2022,”he added.

Expansion towards grocery delivery

With regards to industry trends, prolonged Covid-19 gave technology companies new stimulus to expand into food delivery, with ShopeeFood scaling from Vietnam to three new markets, and new players such as AirAsia Food and Traveloka Eats entering the sector.

Major platforms also expanded into on-demand groceries, including Grab, Gojek, Foodpanda and Lineman Wongnai, leveraging their respective delivery infrastructure and customer base to tackle a much bigger total addressable market, the report found.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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