Southeast Asian food delivery market to hit $28b by 2025, report says

Southeast Asia is expected to reach US$28 billion in food delivery-related transactions by 2025, according to a joint report by super app Grab and market research firm Euromonitor International. The figure would represent a jump of more than 3x from the US$9 billion in gross merchandise value that the industry logged in the region in 2020.

The expected growth in the next four and a half years is likely to be led by emerging markets such as Myanmar, Vietnam, and the Philippines, which are projected to see their food delivery GMV grow 36.2%, 35.8%, and 32.2%, respectively.

Photo credit: 123RF.com

The report also said that one in four food delivery customers in the region had tried ordering meals online for the first time ever during the pandemic.

Social distancing measures were the biggest motivating factor for new users to migrate online for food delivery, the study showed. The ability to order for family and friends and exclusive promotions from foodtech apps were the next major reasons for adopting online food delivery.

Among the surveyed countries, the Philippines recorded the most number of new online food delivery users, with almost two out of five customers in the country trying the service out for the first time during the pandemic.

Photo credit: Euromonitor

The study further noted that 87% of current users are likely to stick to the service – mainly because of its convenience – even if Covid-related restrictions are relaxed.

Top reasons for wanting to use online food delivery as frequently as or more frequently than during the pandemic. Photo credit: Euromonitor

“The majority of online food delivery transactions today are from the largest Southeast Asian cities. With infrastructure and connectivity improvements, we believe that the next wave of growth will come from smaller cities,” said Russell Cohen, group managing director for operations at Grab.

With a growing middle-class segment seen to drive consumption boom in the region, Indonesia and the Philippines are also expected to breach the US$10,000 mark in terms of median household disposable income by 2025, the study found.

Read the full report here: