Online Food Delivery

The Online Food Delivery market in Southeast Asia is projected to reach a revenue of US$36.98bn in 2024.
This is expected to show an annual growth rate (CAGR 2024-2029) of 12.61%, resulting in a projected market volume of US$66.95bn by 2029.
In the Grocery Delivery market, a revenue growth of 23.6% is expected in 2025.0.
The projected market volume for this market in 2024 is US$23.70bn.
In global comparison, China is set to generate the highest revenue with US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$189.80 in 2024.
In the Grocery Delivery market, the number of users is expected to reach 176.0m users by 2029.
The user penetration rate in this market will be at 20.3% in 2024.
In Indonesia, the online food delivery market is experiencing rapid growth due to the country's large population and increasing internet penetration.

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

Online food delivery has become an increasingly popular trend in Southeast Asia, with more and more customers opting for the convenience of having meals delivered straight to their doorsteps.

Customer preferences: Customers in Southeast Asia are attracted to the convenience of online food delivery, especially in urban areas where traffic congestion can make it difficult to get around. Additionally, the rise of digital platforms and mobile applications has made it easier for customers to order food online, with many options available at their fingertips.

Trends in the market: In Indonesia, the online food delivery market has seen significant growth in recent years, with the rise of local startups such as GoFood and GrabFood. These companies have expanded rapidly, catering to a growing middle class with increasing disposable income. In Thailand, food delivery services have become particularly popular among office workers, who often order lunch through online platforms. Meanwhile, in Vietnam, the online food delivery market has been driven by the country's young and tech-savvy population, with companies such as Now and GrabFood gaining popularity.

Local special circumstances: In Singapore, the online food delivery market has been shaped by the city-state's high population density and busy lifestyle. Many customers opt for food delivery due to the long working hours and lack of time to prepare meals at home. In Malaysia, the online food delivery market has been influenced by the country's diverse culinary scene, with customers able to order a wide variety of cuisines through platforms such as Foodpanda and GrabFood.

Underlying macroeconomic factors: The rise of the online food delivery market in Southeast Asia can be attributed to a number of underlying macroeconomic factors. These include the region's growing middle class, increasing smartphone penetration, and the rise of digital platforms. Additionally, the COVID-19 pandemic has accelerated the shift towards online food delivery, as customers have been forced to stay at home and avoid crowded public spaces. As a result, the online food delivery market is expected to continue to grow in Southeast Asia 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.