SEA’s food delivery market to hit $50b by 2030: report

The gross merchandise value (GMV) of Southeast Asia’s on-demand food delivery market is expected to reach US$49.7 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.1%. In 2021, the GMV was estimated to be at US$15.2 billion, according to a report by research firm Frost & Sullivan.

GrabFood, Foodpanda, and Gojek’s GoFood contributed 84.8% of the region’s total food delivery market share in 2021. They were followed by smaller operators such as Deliveroo in Singapore, Line Man in Thailand, and ShopeeFood in Indonesia, Malaysia, and Thailand, the report added.

Among the top three delivery firms, it was estimated that GrabFood led the market with a 47.8% share. Foodpanda and GoFood had a 23.2% and 13.8% market share, respectively.

Photo credit: Grab

An earlier report by Momentum Works also showed that Grab was still leading the food delivery market in Southeast Asia with an estimated US$7.6 billion GMV in 2021.

According to the Frost & Sullivan report, the growth in the food delivery market can be credited to increased internet penetration and mobile application development.

“Backed by large customer bases and user dependence, operators’ super apps are enabling value chain integration,” said Ming Lih Chan, industry analyst for mobility at Frost & Sullivan. She adds that this pushes merchants to optimize their supply chain and time management.

Food delivery players should explore industry integration, portfolio improvement, and merchant partnerships to ride the rising tide of on-demand food delivery growth, the report added.

See also: The rush among food delivery apps to deliver more than just food

“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,” added Chan.