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.
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.
