According to a report from Singapore, the total value of goods delivered in food delivery in Southeast Asia reached US$15.5 billion last year, a 30% increase from US$11.9 billion in 2020 and another record high. Momentum Works based on technology risk consulting. The company’s latest annual “Food Delivery Platforms in Southeast Asia” report (registration required to download) shows slowing growth in 2021 after an annual surge of 183% in 2020 due to lockdowns during the Covid-19 pandemic, but represents a slowdown in growth in 2021. The changing consumer habits of the market. While Indonesia, Thailand and Singapore are still…
According to a report from Singapore, the total value of goods delivered in food delivery in Southeast Asia reached US$15.5 billion last year, a 30% increase from US$11.9 billion in 2020 and another record high. Momentum Works based on technology risk consulting.
The latest annual report of the company “Southeast Asia Food Delivery Platform” report (registration required to download) shows that growth in 2021 has slowed after an annual increase of 183% in 2020 due to lockdowns during the Covid-19 pandemic, but it represents a shift in consumer habits.
While Indonesia, Thailand and Singapore remain the largest food delivery markets in the region, Thailand and Malaysia recorded the highest year-on-year growth rates – reflecting the spending power of these countries despite the challenges posed by the pandemic. Vietnam, on the other hand, experienced the smallest growth, likely due to the strict Covid-19 lockdown affecting the food delivery business.
Grab, Foodpanda and Gojek lead the market
Grab, Foodpanda and Gojek have retained their positions in 2021 despite increasing competition in the market. Grab is estimated to contribute 49% of the value of food delivery in the region, reaching $7.6 billion at the end of the year. Foodpanda contributed 22%, with sales of $3.4 billion. Gojek’s food delivery sales were estimated at $2 billion at the end of the year, accounting for 14 percent of the region’s gross merchandise value. Key players and their market share by country include:
“2021 confirms that the pandemic-induced surge in food delivery demand will persist. Food delivery is an attractive market, especially with e-commerce stagnating,” said Jianggan Li, CEO and founder of Momentum Works Say.
“We expect food delivery to continue to grow through 2022 as players expand into more new cities and services, and the restaurant industry becomes more digital,” he added.
Expanding to grocery delivery
In terms of industry trends, prolonged Covid-19 has given tech companies new incentives to expand into food delivery, with ShopeeFood expanding from Vietnam to three new markets, with new players such as AirAsia Foods and Traveloka Eats entering the space .
Major platforms have also expanded into on-demand groceries, including Grab, Gojek, Foodpanda and Lineman Wongnai, leveraging their respective delivery infrastructure and customer base to address a larger addressable market, the report found.
