Asia’s next bite

In China, food delivery has long been a significant trend. While there are several providers of food delivery in China, the market is led by Meituan, which holds 75% market share, serves over 750 million annual users, and supports more than 13 million active merchants. In India, Zomato has been the leading player, achieving 70% year-on-year sales growth with its integrated food-centric app, leveraging a rapidly expanding population with increasing disposable income. More recently, food delivery has also been gaining traction in Southeast Asia, where penetration is still lower than in China and the US. Penetration of food delivery in ASEAN markets is expected to grow from 14.7% in 2023 to over 16% in 2022. As the largest ASEAN market, Indonesia is projected to expand at a 12% compound annual growth rate (CAGR). Vietnam, though smaller, is the fastest-growing market, expanding at a 15% CAGR, driven by a booming economy that’s raising living standards and aspirations. In this dynamic space, local and regional champions are winning over Western players, with companies like Sea and Grab leveraging large ecommerce and ride-hailing user bases and logistics networks.

Source: Morgan Stanley, September 2024