Online Food Delivery

The Online Food Delivery market in Indonesia is expected to achieve a revenue of US$20.59bn by 2024.
This market is projected to experience a compound annual growth rate (CAGR) of 14.47% from 2024 to 2029, resulting in a market volume of US$40.48bn by 2029.
Moving on to the Grocery Delivery market, it is anticipated to witness a revenue growth of 27.8% in 2025.0.
In 2024, the projected market volume for Grocery Delivery in Indonesia is US$13.40bn.
In terms of global comparison, China is expected to generate the highest revenue, reaching US$450.50bn in 2024.
Moreover, the average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$220.70 in 2024.
Looking at the Grocery Delivery market, the number of users is estimated to reach 87.3m users by 2029.
Additionally, the user penetration in the Grocery Delivery market is expected to be at 22.9% in 2024.
The online food delivery market in Indonesia is experiencing rapid growth due to the country's large population and increasing urbanization.

Definition:

Online Food Delivery refers to the intersection of ordering groceries and prepared meals online. Orders are typically placed through an app or website and delivery times vary.

Structure:

The Online Food Delivery market contains the user and revenue development of two different delivery service solutions: (1) Meal Delivery and (2) Grocery Delivery. Included are services that deliver prepared meals and food ordered online for direct consumption (Meal Delivery) and non-prepared food and beverage products, household, and personal care products (Grocery Delivery). Meal delivery includes the delivery of meals carried out directly by restaurants (Restaurant Delivery) and online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves (Platform Delivery). Grocery Delivery consists of fresh, nonprepared products delivered from supermarkets or retailers where delivery is scheduled (Retail Delivery), Delivery that is under 3 hours and operates dark stores or own warehouses (Quick Commerce), and prepared fresh ingredients to be prepared at home, typically offered through a subscription service (Meal Kit Delivery).

Additional Information:

Revenue figures are the gross merchandise value (GMV), defined as the total sales dollar value for merchandise/food sold through the Online Food Delivery marketplace. User and revenue figures represent B2C services.

Meals and groceries ordered online that are directly delivered by the restaurant, retailer, or platform no matter if ordered via a platform (e.g. Delivery Hero, Instacart) or a restaurant/retailer website (e.g. Domino's, Walmart.com)
Online meal and grocery order and delivery both carried out by a platform (e.g. Deliveroo, Grab, Flink)

Phone orders
Click & collect Grocery orders
Ready-to-eat meals

Indonesia, the largest archipelago in the world, is known for its diverse culture, beautiful islands, and delicious cuisine. In recent years, the country has also become a hot spot for the online food delivery market.

Customer preferences: Indonesians have a strong food culture and enjoy eating out with friends and family. However, with the rise of online food delivery platforms, more and more people are opting to enjoy their favorite meals in the comfort of their own homes. This shift in consumer behavior can be attributed to the convenience and ease of ordering food online, as well as the wider variety of options available.

Trends in the market: The online food delivery market in Indonesia has been growing rapidly in recent years, with both local and international players entering the market. One of the key trends in the market is the increasing popularity of mobile apps for food delivery. Many Indonesians prefer to use their smartphones to order food, making mobile apps a crucial part of the online food delivery ecosystem.Another trend in the market is the emergence of cloud kitchens. These are commercial kitchens that are optimized for delivery-only food businesses. Cloud kitchens allow food delivery platforms to expand their reach without the need for expensive restaurant real estate.

Local special circumstances: Indonesia is a unique market with its own set of challenges and opportunities. One of the biggest challenges for online food delivery platforms in Indonesia is the country's geography. Indonesia is made up of thousands of islands, which can make it difficult and expensive to deliver food to certain areas.Another challenge is the high level of competition in the market. With both local and international players vying for market share, online food delivery platforms need to differentiate themselves by offering unique services and experiences to their customers.

Underlying macroeconomic factors: The growth of the online food delivery market in Indonesia can be attributed to several macroeconomic factors. One of the most important is the country's rapidly growing middle class. As more Indonesians enter the middle class, they have more disposable income to spend on dining out and ordering food online.Another factor is the increasing penetration of smartphones and internet connectivity in Indonesia. With more and more Indonesians gaining access to these technologies, the online food delivery market is poised for continued growth in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.