The report outlines that Southeast Asia’s total food delivery platforms Gross Merchandise value (GMV) grew a modest 5% on-year to reach US$17.1 billion in 2023, mirroring the growth rate observed back in 2022.

Growth was driven primarily by the region’s smallest food delivery market, which is Vietnam, where total GMV grew at almost 30%, followed by Malaysia at 9%.

The report points out that the size of the nation’s online food delivery market expanded from US$1.4 billion in 2023 to reach US$1.8 billion last year.

Thailand and Indonesia registered low single digit growth, while Singapore’s topline remained flat.

Among the food delivery platforms, Grab continued to extend its leadership in 2023, accounting for 55.0% or US$9.4 billion of the region’s food delivery GMV, a 6.8% increase from the year before.

Foodpanda and Gojek are estimated to have contributed 15.8%, equal to US$2.7 billion, and 10.5%, equal to US$1.8 billion, of the region’s GMV, a 12.9% and 10.0% annual decline, respectively.

Elsewhere, Shopee and Lineman showed notable growth and are estimated to have contributed 8.8%, equal to US$1.5 billion, and 8.1%, equal to US$1.4 billion, respectively, to the region’s GMV.

According to industry insiders, the growth of the food delivery market is driven by factors such as users, restaurants, and platforms. Accordingly, Vietnamese people increasingly prefer to order ready-made food via apps due to convenience and numerous incentives on offers.

A recent survey conducted by GrabFood found that 19% of respondents chose to order food delivery for their year-end parties.

In addition, snacking preferences also contribute to the busyness of food delivery platforms, with the most popular dishes being milk tea, at 77%, and desserts, at 37%, according to tech-endorsed market research agency Q& Me.

Food delivery market heats up, weak competitors drop out

Having an estimated value of $33 million, the competition in the food delivery sector is as cutthroat as the ride-hailing market.