Southeast Asia’s food delivery market experienced accelerated growth to reach US$19.3 billion in 2024, a 13% YoY growth from 2023. This happened after two consecutive years (2022/2023) of tepid, 5% growth.
Today, we are happy to release the 5th edition of our annual Food Delivery Platforms in Southeast Asia report. This report offers insights into the latest numbers, market trends, and strategies shaping the region’s food delivery landscape.
These are some of the interesting topline dynamics from the report:
- Food delivery grew much faster than overall F&B (4.6% YoY) in 2024, owing to a combination of factors including intensifying competition in F&B space, as well as platforms’ effort to expand the customer base, in particular low cost segments and tourists;
- Vietnam and Indonesia are the fastest-growing markets in 2024, with market size increases of 26% and 18% respectively;
- Grab continues to dominate the region, owning 53.9% market share; while ShopeeFood has overtaken Gojek to become the third-largest player in Southeast Asia;
- TikTok enters Local Services, starting with selling vouchers for F&B merchants in Indonesia and Thailand. While still in the early stages, this entry could challenge food delivery platforms’ push into advertising and dine out;
- While platforms have started to see customer segmentation drive up customer base, volume and profitability, there is a lot of potential in rider segmentation/operations they could tap into;
Find out the above insights and more by purchasing the Food delivery platforms in Southeast Asia (SEA) 5.0 report, available at US$42.95.
You can download the full report here.
Here is the outline of the 42-page report:
1. Introduction and overview
- At a higher level, 2024 was a year of profitability and consolidation
- SEA food delivery platforms’ total GMV growth accelerated to 13% in 2024
- Indonesia and Vietnam were the fastest-growing food delivery markets in SEA
- Grab retains its leading market share in Southeast Asia; ShopeeFood overtook Gojek
2. Key trends in 2024
- Key trend #1: Overall F&B back on normal growth, but competition intensifies
- Key trend #2.1: Smaller platforms bowed out, while others might be entering
- Key trend #2.2: Indonesia becomes the most competitive market again
- Key trend #3.1: Key players target low-cost segments to expand market size
- Key trend #3.2: Tourists might also be another target audience for expanding market size
- Key trend #4.1: Grab pushes to grow dine-out and vouchers
- Key trend #4.2: TikTok starts to grab merchants’ ad dollars
3. Key players and strategies
- Key players’ top line growth and strategic focus of 2024
- What leaders of key platforms said in 2024…
- How to improve unit economics?
- Key players have been focusing heavily on user segmentation recently
- They have also worked on rider operations
- Riders can also be segmented to improve operations: Meituan’s experience
4. Key takeaways from global developments
- Overview of global developments in 2024
- 1.1 Meituan underwent a major organisational restructuring in 2024
- 1.2 Meituan puts its delivery drones into commercial use, in China and UAE
- 1.3 Meituan kickstarts its real international expansion, starting from Saudi Arabia
- 1.4 Meituan managed to put up a strong defence but the battle still goes on
- 2. Quick commerce again becomes a focus in key markets of Asia
- 3. Delivery Hero tries to focus, and consolidate
- 4. Prosus also needs to bring up the value of its food delivery portfolio
5. Conclusion and perspectives
Some highlights of the report:
Get your copy here!
Complimentary copies are available for Friends of Momentum Works group members, Momentum Works Immersions alumni, and advisory clients of Momentum Works Insights – do reach out to yorlin.ng@mworks.asia to request.
The post [New report] Food delivery growth in Southeast Asia accelerated to 13% in 2024 first appeared on The Low Down - Momentum Works.
