ANALYST NAMES SOUTHEAST ASIA AS THE NEXT GROWTH FRONTIER FOR ON DEMAND FOOD DELIVERY MARKET
Frost & Sullivan, a world-renowned market analyst for more than six decades, recently revealed its research on the Southeast Asian On-demand Food Delivery Market.
Frost & Sullivan, a world-renowned market analyst for more than six decades, recently revealed its research on the Southeast Asian On-demand Food Delivery Market. The recent analysis finds that the industry presents promising growth opportunities for market participants. Increasing internet penetration and mobile applications and surging internet subscribers accelerate market expansion.
The gross merchandise value (GMV) of the market in the region is likely to reach $49.72 billion by 2030, up from $15.15 billion in 2021, registering a compound annual growth rate (CAGR) at 14.1%.
Known for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success, Frost & Sullivan names Southeast Asia as the next growth frontier for on-demand food delivery market.
Southeast Asian On-demand Food Delivery Market, 2021-2030 is the latest addition to Frost & Sullivan's Mobility research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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A highly concentrated market
Southeast Asia's on-demand food delivery market is highly concentrated. GrabFood (by Grab), Foodpanda (by Delivery Hero), and GoFood (by Gojek) contributed 84.8% of the total market share in 2021, followed by smaller operators such as Deliveroo in Singapore, Line Man in Thailand and ShopeeFood in Indonesia, Malaysia and Thailand.
By market share in 2021, GrabFood is the leading on-demand food delivery service in Southeast Asia with 47.8% of the market, followed by Foodpanda at 23.2%, GoFood at 13.8% and others at 15.2%.
"The rise of shared mobility solutions in Southeast Asia has accelerated the expansion of on-demand food delivery services. Backed by large customer bases and user dependence, operators' super apps are enabling value chain integration," said Ming Lih Chan, Industry Analyst, Mobility at Frost & Sullivan.
"Additionally, major on-demand service operators are expected to broaden their product portfolios in the next one to three years, including on-demand deliveries of food and beverage, fresh foods and kitchen supplies, groceries, pharmaceutical products, and so on."
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The tricks to penetrate the saturated market
The developments of on-demand food delivery services will lead to the optimization of merchants, including supply chain management and time management, which vary according to the food delivery types such as instant, scheduled, and deferred.
In addition, with the rapid advancement of technology and the popularization of mobile internet, the adoption of digital payment solutions as opposed to cash on delivery will also increase.
To tap into the growth prospects, on-demand food delivery operators should evaluate the potential integration of different industries, especially those related to mobility, including strategic partnerships, mergers, and acquisitions.
Improve the instant food delivery market and strengthen their competitiveness by broadening their product portfolios and application of new technologies.
It is also important to explore partnerships with merchants, especially food and beverage restaurants and catering services, to enrich product choices for users.
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