Singapore’s food delivery market among slowest-growing in Southeast Asia

Food delivery gross merchandise value in Singapore increased 13% in 2025 to US$2.9 billion, according to the Food Delivery Platforms in Southeast Asia report by consultancy Momentum Works.

A GrabFood delivery rider rides on a bicycle in May 2021. Photo by Sipa USA via Reuters

This was slower than the average growth rate of 18% recorded by six Southeast Asian markets.

Singapore’s expansion was only higher than that of the Philippines at 12% – which the researchers attributed to repeated disruptions caused by tropical cyclones.

Thailand emerged as the fastest-growing market, with gross merchandise value rising 22%. The report attributed this to affordability initiatives by platforms, intensified competition, and the government’s "half-half" subsidy scheme, which offsets part of consumers’ food spending.

Indonesia, Malaysia and Vietnam followed closely, each recording growth of about 18% to 19%. Indonesia, the region’s most populous market, delivered the largest absolute increase, adding roughly $1 billion.

Addressing Singapore’s slower growth, Momentum Works chief executive Li Jianggan said consumer behavior and market conditions vary widely across countries, citing differences in city layouts, spending power, and the supply dynamics of riders and restaurants.

"Food delivery costs can be expensive in Singapore, especially when there are many affordable offline options," he said, as cited by The Straits Times.

While Singapore’s double-digit growth indicates that demand remains resilient, Li said maintaining that pace would place growing pressure on platforms to improve efficiency, particularly as consumers consider alternatives such as dining out or self-pick-up.

He added that Singapore faces a structural challenge unique to the country (a limited pool of delivery riders) compared with its larger and more populous neighbors.

"Adoption of technology will help, but platforms’ relentless focus on building density and operational efficiency would be the key drivers of raising the ceiling."

At the platform level, Grab consolidated its lead as Southeast Asia’s dominant food delivery player, lifting its regional market share from 53.8% in 2024 to about 55% in 2025.

In absolute terms, Grab generated an estimated $12.5 billion in food delivery value across the region last year.

ShopeeFood surpassed Foodpanda to become the region’s second-largest platform, with an estimated $3.3 billion in transactions, while Foodpanda’s value declined to around $2.6 billion.

Gojek and Thailand-based Lineman posted similar figures of about $2 billion each, reflecting Lineman’s strong performance in its domestic market.

The study also highlighted Southeast Asia’s high order volume compared with other emerging markets.

Momentum Works estimated that platforms in the region collectively fulfilled between 8.5 million and 9.5 million food delivery orders per day on average in 2025 – nearly double India’s estimated 4-5 million daily orders, despite India having roughly twice Southeast Asia’s population.

The report noted that India’s relatively smaller food delivery market may be partly due to local eating habits and a limited supply of food establishments.

China, in contrast, fulfills an estimated 180 million to 200 million food delivery orders daily, even though its population is smaller than India’s.

"This highlights that food delivery penetration is shaped less by population size, and more by urban density, eating-out substitution, and platform-led affordability mechanics," the report said.