Market Report: Online Food Delivery in ASEAN

Executive Summary

The OFD industry in ASEAN continues to grow at a high level and is expected to be worth USD 28 billion by 2025. The recent COVID-19 pandemic has also led to a shift from eating out to eating in, providing an opportunity for more people to try new OFD options. The growth of the internet economy has a positive impact on the industry's development, and smartphone penetration is a crucial indicator.

The largest market in ASEAN in the future will be Indonesia, which has the largest population and accounts for half of the market size. The prevalence of motorcycle culture is a good match for this industry and helps secure drivers. Moreover, takeout food is quite cheaper in the region compared to the rest of the world (a Big Mac in the USA was USD 5.15 vs USD 4.24 in Singapore, USD 3.50 in Thailand, USD 2.95 in Vietnam, USD 2.75 in the Philippines, USD 2.45 in Malaysia and USD 2.34 in Indonesia as of July 2022). The demand industry is also characterized to be very explorative of new cuisines, forming a lot of options for consumers to choose from.

There are several types of OFD models. The most popular type are the ones with the logistical capability to process orders, pick up the food, and deliver it, such as the leading players in the industry, Grab and Foodpanda. The providers are attempting to merge to achieve profitability, such as Grab's acquisition of Uber's business. They are investing in the cloud kitchen business that will allow for more efficient operations.

Key Takeaways

Online Food Delivery (OFD) Kept Growing in ASEAN-6 As a Pivotal Dining Alternative During COVID-19 Lockdown; market size is estimated to grow to USD Billion by 2025.
Indonesia captures the biggest share of the regional OFD market. While the Philippines shows the fastest CAGR growth rate.
Cloud Kitchen market to grow at a CAGR of 20% in the Asia-Pacific Between 2019 And 2026
Fairtrade Issues Between OFD Operators and Restaurant Operators Are Already Visible and Being Regulated in Singapore and Thailand

Driving Factor

Online Food Delivery driving factors

Table ot Contents

Industry Overview
Market size and Growth
Driving Factors
Regulatory Overview
Competitive Landscape

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