dotlah! dotlah!
  • Cities
  • Technology
  • Business
  • Politics
  • Society
  • Science
  • About
Social Links
  • zedreviews.com
  • citi.io
  • aster.cloud
  • liwaiwai.com
  • guzz.co.uk
  • atinatin.com
0 Likes
0 Followers
0 Subscribers
dotlah!
  • Cities
  • Technology
  • Business
  • Politics
  • Society
  • Science
  • About
  • Lah!

Online Food Delivery Spend To More Than Triple In Southeast Asia By 2025

  • September 8, 2021
Total
0
Shares
0
0
0

Southeast Asia’s online food delivery spend is expected to grow more than two times faster than the total foodservice spend in the region over the next five years at a compound annual growth rate (CAGR) of 24.4% versus 12.1%. Growth is expected to be fastest in emerging markets such as Myanmar, Vietnam and the Philippines, with the total regional online food delivery Gross Merchandise Value (GMV) to more than triple from US$9 billion in 2020 to US$28 billion in 2025.

Grab, the leading online food delivery player in Southeast Asia, released its 2021 Food Delivery Industry Overview report in partnership with Euromonitor International today. The report was based on research completed in Q2 2021 and seeks to provide an in-depth view into the food delivery industry over the next five years, including Southeast Asian consumers’ appetite for food delivery services post-COVID-19.

The report revealed that about one in four (26%) surveyed consumers in the region were new users of online food delivery services during the pandemic. The main motivations for trying the service were to avoid dining out and to minimise contact with others, to order food for family and friends, and to enjoy exclusive promotions only available for online delivery.

Chart 1: Percentage of new online food delivery users in Southeast Asia

Source: Euromonitor International Survey 2021, Base: All respondents, N=1800
Note 1: Southeast Asia refers to Indonesia, Malaysia, Singapore, Thailand, the Philippines, Vietnam only
Note 2: New user is defined as consumers who started using online food delivery services during COVID-19 period (in 2020 or 2021)

While the COVID-19 pandemic has accelerated food delivery adoption in Southeast Asia, a rising appreciation for food delivery services will contribute to its sustained growth. Between October 2020 and March 2021, 78% of consumers in the region used the service once a week or more. Close to 9 in 10 consumers (87%) expect their usage to remain the same or increase even as COVID-19 restrictions ease. The convenience of food delivery was the number one reason for continued and increased usage post-pandemic.

Chart 2: Top reasons for using online food delivery services as frequently or more frequently in Southeast Asia

Source: Euromonitor International Survey 2021. Base: Respondents who are likely to be using online food delivery services at least the same way as they do currently, N=1,567
Note: Southeast Asia refers to Indonesia, Malaysia, Singapore, Thailand, the Philippines, Vietnam only

Food delivery users value speed and variety above promotions 

Consumers in Southeast Asia value service quality and experience above promotions, suggesting a shift in consumer expectations on food delivery services. The survey found that the top factors impacting satisfaction level for food delivery services are speed of delivery (51%), food options variety (45%), and promotions availability (41%).

When measured against these factors, GrabFood outperformed in delivery speed and variety of food options. GrabFood was voted the top-of-mind brand across six Southeast Asian countries [3]. In 2020, GrabFood recorded a regional online food delivery category share of about 50%.

Chart 3: Top factors impacting satisfaction level for most used food delivery app / website in Southeast Asia

Source: Euromonitor International Survey, 2021. Base for ‘factors impacting food delivery satisfaction level’: All respondents who have used online food delivery services in the past 6 months, N=1,800; Base for ‘factors impacting satisfaction level for GrabFood’: Respondents selected GrabFood as most frequently used website/app, N=646
Note: Southeast Asia includes Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam only

Strong growth potential through 2025

By 2025, the region’s overall prepared meal sales is projected to reach US$170.5 billion, with online food delivery penetration increasing to 16.4%. This will be driven in part by a rising middle class and increasing smartphone adoption in Tier 2 cities.

Commenting on this trend, Russell Cohen, Group Managing Director for Operations at Grab said: “The majority of online food delivery transactions today are from the largest Southeast Asian cities. With infrastructure and connectivity improvements, we believe that the next wave of growth will come from smaller cities. Our leading position across mobility, food delivery and digital wallet payments gives Grab an edge to capture the immense opportunity ahead of us. We will continue to invest in tech to bring down the overall cost of delivery and cost to serve consumers, so as to make on-demand delivery more affordable and accessible to more people.”

In Grab’s recent earnings announcement, the company reported that GrabMart’s GMV for Q1 2021 increased by 21% quarter on quarter compared to Q4 2020, and was 36x higher compared to Q1 2020.

“The pandemic has accelerated the shift in consumer behaviour towards buying food and groceries online. However, online grocery delivery penetration is extremely low in the region, at just over 1% here compared to 8% in China and 9% in the US. Our strategy for GrabMart is to serve the mass market, and this has been a key differentiator for us. Through different delivery models, we are able to offer grocery delivery services at different price points to meet different price expectations in Southeast Asia,” added Cohen.

 

Footnotes

[1] Euromonitor International Survey 2021, Base: All respondents, N=1800

[2] Includes Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam only

[3] Euromonitor International Survey 2021, Base: All respondents, N=1800; Six Southeast Asian countries include Singapore, Malaysia, Indonesia, Thailand, the Philippines, Vietnam only

Total
0
Shares
Share
Tweet
Share
Share
Related Topics
  • Grab
  • Grab Singapore
  • GrabMart
  • Online Orders
  • Survey
dotlah.com

Previous Article
  • Lah!

The History Of Insects Living On The Open Ocean Tracked With The History Of The Currents They Ride

  • September 8, 2021
View Post
Next Article
  • Lah!
  • Science

New Tech To Prevent Li-ion Battery Fires

  • September 16, 2021
View Post
You May Also Like
View Post
  • Lah!

Tariffs, Trump, and Other Things That Start With T – They’re Not The Problem, It’s How We Use Them

  • John Francis
  • March 25, 2025
View Post
  • Lah!

Canonical announces 12 year Kubernetes LTS

  • John Francis
  • March 4, 2025
dotlah-smartnation-singapore-lawrence-wong
View Post
  • Artificial Intelligence
  • Featured
  • Features
  • Lah!
  • Machine Learning
  • Technology

Growth, community and trust the ‘building blocks’ as Singapore refreshes Smart Nation strategies: PM Wong

  • Dean Marc
  • October 9, 2024
dotlah-singapore-ndp-2024
View Post
  • Lah!

Here’s what to expect for NDP 2024!

  • dotlah.com
  • August 9, 2024
dotlah-singapore-airlines_may_21-1716298816
View Post
  • Lah!

Severe turbulence during Singapore Airlines flight leaves several people badly injured. One man died

  • majulah
  • May 22, 2024
dotlah-pm-lee-lawrence-wong-9656d4cd-1fa4-40ed-905d-e19e639b8476_728802dd
View Post
  • Lah!
  • People
  • Politics

End of Lee Era for Singapore as PM Steps Down

  • dotlah.com
  • May 16, 2024
DPM Lawrence Wong will be Singapore's fourth prime minister on May 15. ST PHOTO: LIM YAOHUI
View Post
  • Lah!
  • People
  • Politics

7 things to know about Singapore’s next prime minister Lawrence Wong

  • dotlah.com
  • May 15, 2024
When asked about his leadership style, DPM Lawrence Wong said he will be open and consultative, but he will not shirk from doing what is necessary for Singapore's future. ST PHOTO: LIM YAOHUI
View Post
  • Features
  • Lah!
  • People
  • Politics

‘We are prepared to relook everything’: Lawrence Wong on a changing society and his hopes for S’pore

  • dotlah.com
  • May 15, 2024


Trending
  • turkey-syria-earthquake 1
    • Features
    • People
    • World Events
    Where You Can Donate To Help Turkey & Syria Earthquake Victims
    • February 11, 2023
  • 2
    • Lah!
    • Technology
    A*STAR’S IME & STMicroelectronics Team Up On Silicon Carbide R&D For EV Market, Industrial Applications
    • November 27, 2021
  • Building, Institution and People 3
    • Features
    • People
    Hierarchy and Beyond – Organisational Structures for Any Institution
    • June 28, 2023
  • 4
    • Lah!
    Researchers Discover New Species Of Orchid That Is Native And Endemic To Singapore
    • June 21, 2020
  • 5
    • Lah!
    We’re In Danger Of Drowning In A Coronavirus ‘Infodemic’. Here’s How We Can Cut Through The Noise
    • February 13, 2020
  • 6
    • Science
    Snowflake formulas, dice odds and other satisfying maths of the everyday
    • September 4, 2018
  • paris-eiffel -tower-jad-limcaco-NT1mJPgni6A-unsplash 7
    • Featured
    Your Ultimate Insider’s Guide to Taylor Swift’s Paris Eras Tour
    • May 11, 2024
  • 8
    • Science
    • Technology
    These Are The Meta-Trends Shaping The Future (At Breakneck Speed)
    • August 27, 2019
  • 9
    • Technology
    Enhancing Digital Privacy By Hiding Images From AI
    • July 2, 2020
  • 10
    • Technology
    Singles’ Day Deals: Best Backpacks That You Should Get Now
    • November 8, 2019
  • 11
    • Artificial Intelligence
    • Science
    • Technology
    A Glimpse Of The Next Generation Of AlphaFold
    • November 6, 2023
  • 12
    • Technology
    Different Types Of Cyber Threats That You Should Watch Out
    • May 23, 2019
Trending
  • Smart Watch 1
    Best Smartwatches, Your Gateway to Health Monitoring and Everyday Use
    • October 5, 2025
  • Cooking pots and pans 2
    Best Pots and Pans 2025: All-Season, All-Purpose Picks for Every Kitchen
    • September 23, 2025
  • 3
    Politicians love comparing NZ’s economy to Singapore or Ireland – but it’s simplistic and misleading
    • September 21, 2025
  • Kitchen Knives - Best All-Around Picks in 2025 4
    Kitchen Knives : The Surgeons of Cooking – Best All-Around Picks in 2025
    • September 15, 2025
  • 5
    Apple unveils iPhone 17 Pro and iPhone 17 Pro Max, the most powerful and advanced Pro models ever
    • September 9, 2025
  • 6
    Apple debuts iPhone 17
    • September 9, 2025
  • Fruits and vegetables for cooking. For food processors. 7
    Food Processor: The Swiss Army Knife of the Kitchen – Best All-Around Picks in 2025
    • September 8, 2025
  • 8
    Meet Samsung Galaxy Tab S11 Series: Packing Everything You Expect From a Premium Tablet
    • September 4, 2025
  • 9
    Malaysia’s ‘ASEAN Shenzhen’ needs some significant legal reform to take off — here’s how
    • August 25, 2025
  • French Fries 10
    Air Fryer: The One Cooking Appliance to Rule Them All – Best All-Around Picks in 2025
    • August 22, 2025
Social Links
dotlah! dotlah!
  • Cities
  • Technology
  • Business
  • Politics
  • Society
  • Science
  • About
Connecting Dots Across Asia's Tech and Urban Landscape

Input your search keywords and press Enter.