Southeast Asia’s food delivery spending grew 13 percent year on year to $19.3 billion in 2024 with Vietnam and Indonesia leading growth, Momentum Works said Monday.

The Singapore-headquartered venture builder and insights research firm said in its fifth annual “Food Delivery Platforms in Southeast Asia” report that after two years of subdued 5 percent growth, Southeast Asia’s food delivery sector rebounded in 2024.

The resurgence was largely driven by Vietnam and Indonesia, while other markets registered double-digit or near-double-digit growth.

Despite a slowdown in overall food and beverage (F&B) market growth to 4.6 percent, food delivery penetration has deepened, thanks to new customer segments and evolving platform strategies.

“After years of prioritizing profitability, Southeast Asia’s top food delivery platforms have regained momentum to fuel their next phase of growth,” said Jianggan Li, Chief Executive Officer and Founder of Momentum Works.

“With sharper customer segmentation and enhanced operational efficiency, they are now positioned to explore bolder, more strategic moves that drive sustainable expansion,” he added.

According to the report, Vietnam’s food delivery market saw the highest growth at 26 percent, with ShopeeFood and Grab forming an effective duopoly.

Indonesia followed closely at 18%, driven by aggressive expansion efforts from Grab, Gojek, and ShopeeFood.

Meanwhile, Grab retained its top position, increasing its lead over Foodpanda, while ShopeeFood overtook Gojek to become the third-largest player in the region.

The report also showed leading platforms like Grab and ShopeeFood have shifted their focus to attract mass-market customers through budget-friendly initiatives such as lower delivery fees and value meals.

Additionally, platforms are targeting tourists, particularly from China, to drive growth.

TikTok, on the other hand, has started piloting local services in Indonesia and Thailand, allowing users to purchase vouchers for F&B and other services.

While still in its early stages, TikTok’s entry could disrupt the food delivery market, especially if it partners with delivery platforms for fulfilment.

The report also highlighted that platforms have focused on improving unit economics by optimizing rider operations, reducing delivery costs, and segmenting customers into mass, standard, and premium tiers.

The food delivery market in Southeast Asia is becoming increasingly concentrated, with two leading players dominating over 80 percent of the market in most countries.

A potential Grab-Gojek merger could further reshape the competitive landscape in 2025, said the report.

Southeast Asia e-commerce up 15 pct on year to $114.6B GMV in 2023