With a modest 6.8% increase in GMV, Grab's dominance in Southeast Asia's food delivery scene is more Michelin star than street food stall. Its rivals, Foodpanda and Gojek, are eating Grab's dust with declines of 12.9% and 10% respectively. Yet, with only 5% of SEA's 600M folks as customers, the food delivery pie looks as expansive as my waistline after Thanksgiving. The region's appetite for food delivery grew by 5% to a hearty €15.4B, with Vietnam leading the munch, showing a 28% increase in GMV. Meanwhile, premium brands are tightening their belts amid economic jitters, and the market sees a stir with Delivery Hero's exit from Vietnam and Chinese coffee brands stirring up the scene.
Southeast Asia's food delivery expenditure topped €15.4B in 2023, a 5% uptick from the previous year, led by Vietnam's voracious 28% growth. Despite the overall growth, Singapore's market flatlined, showing that not all appetites are created equal.
As companies like Delivery Hero reconsider their plates and Chinese brands like Luckin Coffee pour into SEA, the strategy menu is diversifying. This buffet of moves, including mergers and acquisitions, hints at a competitive feast yet to come.
Economic uncertainties have premium brands in a pickle, leading to cost-cutting and closures. Yet, with F&B spending finally surpassing pre-pandemic levels (€113.1B in 2023), the table is set for those who can adapt their recipes for success.
Despite the mixed bag of market growth and contractions, major players like Grab are slicing closer to profitability, balancing the books with a side of advertising revenue to sweeten the deal.
With a vast untapped customer base and opportunities for operational efficiency, the region's food delivery sector is simmering with potential. The key to future success? A blend of innovation, market understanding, and the agility to adapt to changing consumer tastes.
❓ How will new entrants spice up the competitive landscape in SEA's food delivery market?
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