Southeast Asia's Food Delivery Market Hits $22.7B as Grab Dominates with 55% Share

Momentum Works has released its latest analysis of Southeast Asia's online food delivery market, revealing significant growth and Grab's continued dominance in the region. According to the report, the gross merchandise value (GMV) of the online food delivery market across Southeast Asia's six largest economies reached $22.7 billion in 2025, representing an 18% year-over-year increase.

Market Growth and Regional Dynamics

The 18% YoY growth demonstrates the resilience and continued expansion of food delivery services in Southeast Asia, despite broader economic challenges in the region. The six economies analyzed likely include Indonesia, Thailand, Vietnam, Malaysia, Singapore, and the Philippines - markets that collectively represent the bulk of Southeast Asia's population and economic activity.

This growth trajectory suggests that food delivery has transitioned from a pandemic-driven phenomenon to an established consumer behavior pattern. The market's expansion reflects several factors:

• Increasing urbanization and busy lifestyles driving demand for convenience
• Growing middle class with disposable income for food delivery services
• Improved logistics infrastructure and delivery networks
• Expansion of restaurant partnerships and menu options
• Integration of food delivery with broader super-app ecosystems

Grab's Market Dominance

Grab's 55% market share represents a commanding position in the competitive landscape. This dominance is particularly noteworthy given the intense competition in the region from players like Foodpanda, Line Man, and local competitors in various markets.

Grab's market leadership can be attributed to several strategic advantages:

1. Super-app Integration: Grab has successfully integrated food delivery with ride-hailing, digital payments, and other services, creating a sticky ecosystem that keeps users engaged across multiple touchpoints.

2. First-Mover Advantage: As one of the earliest entrants in the Southeast Asian market, Grab has established strong brand recognition and user loyalty.

3. Regional Scale: Unlike some competitors that focus on specific countries, Grab operates across multiple Southeast Asian markets, allowing for economies of scale and cross-border synergies.

4. Logistics Infrastructure: Grab has invested heavily in building robust delivery networks and technology platforms that can handle high volumes efficiently.

Competitive Landscape

While Grab leads with 55% share, the remaining 45% is distributed among several competitors, suggesting a competitive but not fragmented market. Key competitors likely include:

• Foodpanda: Strong in several markets, particularly Thailand and Vietnam
• Line Man: Dominant in Thailand through integration with the popular Line messaging app
• Local players: Various country-specific competitors that maintain strong positions in their home markets

Economic Implications

The $22.7 billion GMV represents substantial economic activity and employment generation in the region. The food delivery sector has become a significant contributor to:

• Employment: Creating jobs for delivery riders, customer service representatives, and logistics personnel
• Restaurant Revenue: Providing additional sales channels for restaurants, particularly during challenging economic periods
• Technology Development: Driving innovation in logistics, payment systems, and customer experience
• Urban Planning: Influencing city infrastructure and traffic patterns as delivery volumes increase

Future Outlook

The continued growth of Southeast Asia's food delivery market suggests several trends for the future:

1. Consolidation: Grab's dominant position may lead to further consolidation as smaller players struggle to compete

2. Profitability Focus: With market maturity, companies may shift focus from growth to profitability, potentially leading to price adjustments and service optimization

3. Technology Integration: Expect deeper integration of AI, machine learning, and data analytics to optimize delivery routes, predict demand, and personalize user experiences

4. Expansion into Adjacent Services: Food delivery platforms may expand into grocery delivery, pharmacy services, and other convenience categories

5. Sustainability Initiatives: Growing environmental awareness may drive adoption of eco-friendly packaging and delivery methods

Challenges and Considerations

Despite the positive growth trajectory, the food delivery sector faces several challenges:

• Regulatory Scrutiny: Governments may increase oversight of delivery platforms, particularly regarding worker classification and labor practices
• Competition from Aggregators: Restaurant-owned delivery platforms and third-party aggregators could challenge established players
• Economic Sensitivity: Food delivery is discretionary spending that may be affected by economic downturns
• Operational Costs: Rising fuel prices and labor costs could pressure margins
• Customer Acquisition Costs: As the market matures, acquiring new customers becomes increasingly expensive

Regional Comparisons

Southeast Asia's food delivery market growth compares favorably to other regions. While markets like China and the US have seen more mature growth patterns, Southeast Asia's 18% YoY growth indicates significant room for expansion. This growth rate suggests that food delivery penetration in the region remains below saturation levels, offering opportunities for continued expansion.

The region's unique characteristics - including diverse cultures, varying levels of economic development, and different regulatory environments - create both challenges and opportunities for food delivery platforms. Companies that can navigate these complexities while maintaining operational efficiency are likely to succeed.

Conclusion

Momentum Works' report underscores the robust health of Southeast Asia's food delivery market and Grab's dominant position within it. The $22.7 billion GMV and 18% growth rate reflect a market that has moved beyond pandemic-driven adoption to become an integral part of the region's consumer economy.

Grab's 55% market share positions it as the clear leader, but the competitive landscape remains dynamic with significant opportunities for innovation and growth. As the market continues to mature, success will likely depend on companies' ability to balance growth with profitability, navigate regulatory challenges, and meet evolving consumer expectations.

The food delivery sector's continued expansion in Southeast Asia represents a significant economic opportunity and a testament to the region's digital transformation. With Grab leading the charge, the market appears poised for continued evolution and growth in the coming years.