- The online grocery penetration in total grocery market is expected to grow and reach to more than 3.0% by the end of 2026.
- Post Covid-19 outbreak average basket size of online order has increased, as people spent more time at home Food category accounted for about 15% of overall expenditure allocation followed by healthcare.
- To enable quicker deliveries service providers might adopt technologies such as drone deliveries, warehouse automation, and voice ordering and ordering/searching by taking a picture in the app.
Impact of Covid-19: Companies witnessed a double-digit growth across all essential product categories namely water, fresh fruits, vegetables, health & nutrition, household supplies during the Covid-19 pandemic. Companies experienced a surge in average order size as customers were shopping in bulk. In order to fulfil the increased demand, companies expanded their delivery fleet by partnering with third party delivery companies to manage last-mile logistics. In addition to this, companies are also partnering with delivery fleets of bike ride hailing apps such as GoJek (GoRide) and food delivery companies to ensure door-to-door delivery.
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Expanding Partnerships: It is anticipated that e-grocery companies would be extending tie ups with suppliers, grocery stores (hypermarkets, supermarket), food delivery companies, e-wallet companies and other fintech firms to leverage their capabilities to fulfil consumer orders. Other future strategies which the companies might adopt are Introducing express delivery, regional expansion, product portfolio diversification, focus on achieving operational efficiency and establishment of dark store and micro-fulfilment centres.
Application of AI: Drone Technology, Voice Ordering, Artificial Intelligence & Machine Learning, Warehouse Automation is anticipated to drive the online grocery market in future. AI & Machine learning technologies can be used to provide a personalised shopping experience to the customer. As the industry is in growth stage a strong supply chain accompanied by enhanced demand prediction and consumer behaviour analysis is crucial to ensure sufficient availability of products timely delivery of the fresh produce at minimum wastage.
According to the report by Ken Research titled “Indonesia Online Grocery Market Outlook to 2026 – Driven by Changing Shopping Habits of Consumers and Regional Expansion of Local & International Players in the Archipalego” the online Grocery Delivery Market will increase at a CAGR of 31.1% during outlook period 2021P – 2026F. The market will witness growth owing to introduction of subscription models & innovative strategies adopted by service provides, coupled with increasing demand from the population under the age bracket (25 – 37 years). Moreover, growing working population and rising internet penetration will further comprehend the market growth.
Key Segments Covered: –
Lesser Sunda Islands
By Age Group
By Product Category
Food & Beverages
Beauty and Health
By Mode of Payment
Cash on Delivery
By Mode of Delivery
In a Specific Time Period (Same Day or Next Day)
Express Delivery (30 Minutes to 120 Minutes)
Other (2 – 3 Days or More)
By Type of Business
Key Target Audience
Online Grocery Delivery Companies
Supermarkets & Hypermarkets
Food Delivery Companies
Time Period Captured in the Report:
Historical Period: 2016 – 2021P
Forecast Period: 2021P – 2026F
Key Topics Covered in the Report: –
Difference between Online & Offline Grocery Shopping. Why Online Grocery is the Way Forward?
Target Addressable Audience
Supply Ecosystem and Competition Parameters
Demand Scenario, Target Customer and Factor Influencing Consumer Behavior
Technologies Facilitating Online Grocery Industry
Upcoming Technologies in Online Grocery Industry
Cross Comparison of Operating Models (Marketplace, Pureplay and Omnichannel)
Addressable Gap in the Market and Possible Solutions
Emerging Business Strategies
Best Practices in Business
Covid-19 Impact on Indonesia Online Grocery Market
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Ankur Gupta, Head Marketing & Communications
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