Indonesia Online Grocery Market Outlook to 2026: Ken Research

The report titled “Indonesia Online Grocery Market Outlook to 2026 – Driven by Changing Shopping Habits of Consumers and Regional Expansion of Local & International Players in the Archipelago” provides a comprehensive analysis of the Online Grocery Market in Indonesia. The report covers various aspects including the current online grocery scenario in Indonesia, needs & opportunities describing the target addressable market, an addressable gap in the market, and possible solutions.

It also covers current supply and demand in the region, detailed working of the marketplace, Omni-channel and Marketplace operating model, trends, developments, challenges, current & upcoming technologies facilitating the online grocery industry, revenue streams, and marketing strategies driving the industry. It gives a detailed explanation of the competitive scenario including a cross-comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.

Market Overview:

Gaps in offline grocery shopping such as the inconvenience of commute, long payment queues, and cost of impulse buying led to the introduction of e-grocery in Indonesia. Indonesia's online grocery market is currently positioned at a growth stage, and increasing at a staggering double-digit growth rate between the period 2016 and 2021P. Covid-19 Pandemic acted as a catalyst for Indonesia’s E-grocery market’s growth. The number of companies offering e-grocery services in Indonesia has increased over the years. Moreover, the high penetration of the internet, growing working population, and rising number of single families have led to the growth of e-grocery services in the country.  On the other hand, companies have also expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.

By Product Category (Food & Beverages, Household Supplies, Beauty and Health, Baby & Kids, and Fresh Food)

Fresh Food Produce & Beverages mapped as the most demanded product category. This was followed by household supplies, beauty & health, and others. Companies like TaniHub and Sayurbox have a strong farmer’s network and are known for their fresh produce.

By Region (Java, Sumatra, Kalimantan & Others)

Java (Jakarta and Greater Jakarta) & Sumatra are mapped as major areas based on the demand and supply of online grocery services. Java accounted for more than half of the population concentration of the country. Working professionals, who are the major end-users of online grocery services, are concentrated in Java followed by Sumatra. Kalimantan region also is likely to witness great demand in the coming years.

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By Mode of Payment (Online Payment & Cash on Delivery)

The demand is still dominated by pre-delivery online payment. Payments made through debit and credit cards are popular however payments made through e-wallets and points are catching pace. Most of the companies either have their in-house wallet system or have partnered with payment solution companies, online payments are a win-win for both consumers and the company. Consumers prefer online payment as there are lots of discount offers and cashback offered via this mode of payment.

By Age Group (18-24, 25-37, 38-44, 45+):

In Indonesia, the majority of the GMV contribution in the overall online grocery market has been contributed by the people under the age bracket of 25 – 37 years which is approximately more than 1/3 of the market. This is further followed by other people of age group categories such as 38 – 44 years, 18 – 24, and others.

Competitive Landscape

The industry is fragmented with the presence of more than 25 big and small players operating across the marketplace and the omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, and Ease of Payment have been major factors influencing customer behavior. The major players include Shopee, Tokopedia, Sayurbox, Dropezy, TaniHub, GrabMart, etc. Companies with large product assortment, wide regional presence, and express delivery are identified as clear leaders in the industry.

Future Outlook and Projection

The demand is expected to grow at a double-digit CAGR based on GMV during the review period 2021P and 2026F. This is majorly due to the increasing adoption of the new technologies in the market by a majority of the players coupled with the upcoming tech-based delivery options namely Drone Delivery, Warehouse Automation, Voice Ordering, and others. However, companies are anticipated to focus on expanding tie-ups with suppliers & grocery stores to fulfill customer orders which will further lead to market consolidation shortly as players with strong financial support and superior brand value will acquire small players.