The rise of shared mobility solutions in Southeast Asia has accelerated the expansion of on-demand food delivery services.
Frost & Sullivan’s recent analysis, Southeast Asian On-demand Food Delivery Market, finds that the industry presents promising growth opportunities for market participants. Increasing internet penetration and mobile applications and surging internet subscribers accelerate market expansion. The gross merchandise value (GMV) of the market in the region is likely to reach $49.72 billion by 2030, up from $15.15 billion in 2021, registering a compound annual growth rate (CAGR) at 14.1%.
Southeast Asia’s on-demand food delivery market is highly concentrated. GrabFood (by Grab), Foodpanda (by Delivery Hero), and GoFood (by Gojek) contributed 84.8% of the total market share in 2021, followed by smaller operators such as Deliveroo in Singapore, Line Man in Thailand and ShopeeFood in Indonesia, Malaysia and Thailand. By market share in 2021, GrabFood is the leading on-demand food delivery service in Southeast Asia with 47.8% of the market, followed by Foodpanda at 23.2%, GoFood at 13.8% and others at 15.2%.
“The rise of shared mobility solutions in Southeast Asia has accelerated the expansion of on-demand food delivery services. Backed by large customer bases and user dependence, operators’ super apps are enabling value chain integration,” said Ming Lih Chan, Industry Analyst, Mobility at Frost & Sullivan. “Additionally, major on-demand service operators are expected to broaden their product portfolios in the next one to three years, including on-demand deliveries of food and beverage, fresh foods and kitchen supplies, groceries, pharmaceutical products, and so on.”
