Indonesia’s online grocery market takes off

HappyFresh is among the largest online grocery providers in Indonesia

The Covid-19 pandemic has accelerated what was already a big trend in Indonesia, namely online grocery shopping. Experts expect the country’s grocery e-commerce market could be worth nearly $170 billion as early as next year, while Indonesia is also projected to be the fourth-biggest grocery market in Asia in 2022 after China, India and Japan.

This is nearly half of the potential of $350 billion a 2020 study by Facebook and advisory firm Bain & Company estimated for the Southeast Asian grocery market.

In Indonesia, the largest and most populous country in Southeast Asia with a over 273 million people, the enforcement of safety measures against the pandemic over the last one and a half years has led to a rise in the popularity of online shopping, particularly in the online grocery market, bringing with it a boom in the number of e-grocery platforms and customers.

E-commerce transactions expected to surge

Another consulting company, India-based RedSeer Management Consulting, found that online shoppers in Indonesia grew from 75 million pre-Covid-19 to 85 million people during the pandemic. Meanwhile, the 2020 e-Conomy SEA report by Google, Temasek and Bain & Company projects that e-commerce transactions in Indonesia alone are expected to increase by almost 160 per cent in the next five years.

That said, it is expected that traditional retailers will be increasingly losing ground to online grocery retail, with sales spanning over a product portfolio of essential and non-essential goods including fresh and processed food, cleaners, sanitation, health masks, vitamins, cooking utensils, video games and sports equipment being done increasingly digitally.

New players rush into the market, old ones adapt to digital economy

This has encouraged more and more investors to fund online grocery startups. Established online grocery market players in Indonesia including Sayurbox, HappyFresh and TaniHub have received fundings this year, while new players such as Pasarnow and Segari were also lucky to get cash injections.

Other online grocery stores in the country include premium grocery Luxofood, Indian food-focused Swastik Mart, as well as fresh and health produce retailers Brambang and Ranch Market.

Overall, the booming e-groceries sector is likely to continue to grow as new e-commerce players and so-called super apps enter the scene, while conventional grocery stores are rushing to digitalise their operations.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

[caption id="attachment_37609" align="alignleft" width="300"] HappyFresh is among the largest online grocery providers in Indonesia[/caption] The Covid-19 pandemic has accelerated what was already a big trend in Indonesia, namely online grocery shopping. Experts expect the country’s grocery e-commerce market could be worth nearly $170 billion as early as next year, while Indonesia is also projected to be the fourth-biggest grocery market in Asia in 2022 after China, India and Japan. This is nearly half of the potential of $350 billion a 2020 study by Facebook and advisory firm Bain & Company estimated for the Southeast Asian grocery market. In Indonesia, the...

HappyFresh is among the largest online grocery providers in Indonesia

The Covid-19 pandemic has accelerated what was already a big trend in Indonesia, namely online grocery shopping. Experts expect the country’s grocery e-commerce market could be worth nearly $170 billion as early as next year, while Indonesia is also projected to be the fourth-biggest grocery market in Asia in 2022 after China, India and Japan.

This is nearly half of the potential of $350 billion a 2020 study by Facebook and advisory firm Bain & Company estimated for the Southeast Asian grocery market.

In Indonesia, the largest and most populous country in Southeast Asia with a over 273 million people, the enforcement of safety measures against the pandemic over the last one and a half years has led to a rise in the popularity of online shopping, particularly in the online grocery market, bringing with it a boom in the number of e-grocery platforms and customers.

E-commerce transactions expected to surge

Another consulting company, India-based RedSeer Management Consulting, found that online shoppers in Indonesia grew from 75 million pre-Covid-19 to 85 million people during the pandemic. Meanwhile, the 2020 e-Conomy SEA report by Google, Temasek and Bain & Company projects that e-commerce transactions in Indonesia alone are expected to increase by almost 160 per cent in the next five years.

That said, it is expected that traditional retailers will be increasingly losing ground to online grocery retail, with sales spanning over a product portfolio of essential and non-essential goods including fresh and processed food, cleaners, sanitation, health masks, vitamins, cooking utensils, video games and sports equipment being done increasingly digitally.

New players rush into the market, old ones adapt to digital economy

This has encouraged more and more investors to fund online grocery startups. Established online grocery market players in Indonesia including Sayurbox, HappyFresh and TaniHub have received fundings this year, while new players such as Pasarnow and Segari were also lucky to get cash injections.

Other online grocery stores in the country include premium grocery Luxofood, Indian food-focused Swastik Mart, as well as fresh and health produce retailers Brambang and Ranch Market.

Overall, the booming e-groceries sector is likely to continue to grow as new e-commerce players and so-called super apps enter the scene, while conventional grocery stores are rushing to digitalise their operations.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply