Vietnam spends $1.4 bln on food delivery in 2023, up 30%: Momentum Works

Food delivery services in Vietnam reached a gross merchandise value (GMV) of $1.4 billion in 2023, up 30% year-on-year, according to Singapore-based market researcher Momentum Works.

In the January 2024 edition of the “Food deliver platforms in Southeast Asia 4.0” report, Momentum Works said the 30% growth is the highest in the region, while the figures are single-digits in other regional markets. However, Vietnam's size is the smallest in Southeast Asia.

Indonesia's market size of $4.6 billion is the largest in the region, followed by Thailand with $3.7 billion, Singapore with $2.5 billion, the Philippines with $2.5 billion, and Malaysia with $2.4 billion.

In Vietnam, Grab and Shopee Food lead the market with respective shares of 47% and 45%, followed by Baemin with 5% and Gojek with 3%.

In Southeast Asia, Grab is the leader with a GMV of $9.4 billion. Foodpanda, a sister firm of Baemin and also under the ecosystem of Delivery Hero, ranks second with $2.7 billion.

Reviewing the regional market, Momentum Works highlighted that the spending in the food & beverage (F&B) market is estimated to recover to $125.2 billion in 2023, exceeding the pre-pandemic figure of $115.7 billion in 2019 for the first time.

Another notable trend is the entrance and expansion of Chinese F&B brands into Southeast Asia, such as Mixue milk tea brand entering Vietnam in 2018 and Cotti Coffee coming into Vietnam in 2023.

Momentum Works also emphasized a key development in Vietnam that Baemin, under Delivery Hero, exited in 2023.