Press Release

Surging Internet Penetration to Drive the Indonesia Online Grocery Market

The Indonesia Online Grocery Market is projected to grow at a CAGR of about 24.7% during the forecast period of 2024–30, cites MarkNtel Advisors in the recent research report. The surge in demand for online grocery shopping in Indonesia is a result of a confluence of factors. Primarily, the burgeoning middle class and increased internet penetration are fueling a shift in consumer preferences towards convenience and digitalization. The high internet penetration rate is revolutionizing shopping habits, with consumers preferring the convenience of online grocery shopping due to time-saving benefits and the elimination of physical store visits. Additionally, urbanization and hectic lifestyles in the country are playing a pivotal role in accelerating the adoption of online shopping, encompassing groceries. This is leading to the expansion of online grocery services in Indonesia to grab substantial market share by providing a diverse product range, competitive pricing, and efficient delivery services.

Additionally, the growing adoption of digital payment methods, such as credit/debit cards and mobile wallets, is widening online delivery opportunities, allowing online grocery retailers to tap into a larger customer base and meet the demand for convenient shopping experiences. Apart from this, technology-driven solutions, including warehouse automation, real-time tracking, and drone deliveries, are catalyzing the growth of the online grocery market by addressing logistical challenges and enhancing efficiency. Leading players are spearheading these innovations, contributing to improved operational efficiency, positive customer experiences, and overall market growth. As these technological advancements become more widespread, they are likely to further propel the adoption of online grocery shopping in Indonesia, further states the research report, “Indonesia Online Grocery Market Analysis, 2024.”

Segmentation Analysis

App-based Segment to Seize Significant Market Share

Based on the platform, the market is further bifurcated into, Web-based and App-based platforms. Among them, the widespread use of smartphones and mobile devices in the country makes apps more accessible to a larger portion of the population. Given that many Indonesians rely on smartphones for daily tasks, app-based platforms provide a seamless experience for browsing, ordering, and tracking deliveries.

Additionally, mobile app interfaces are often optimized for smaller screens, which enhances the shopping process, crucial in a diverse market with varying digital literacy levels. Besides, app-based platforms also employ push notifications and in-app promotions to engage customers and encourage businesses to continue to use their offerings. Consequently, numerous grocery delivery providers are expanding in Indonesia through the launch of their apps, including GoMart by Gojek, etc., to gain market competitiveness. This indicates the significant market share of app-based platforms in the Indonesia Online Grocery Market.

Instant Delivery Segment to Lead the Online Grocery Industry in the Country

Instant delivery has grown to be a major factor in Indonesia's online grocery business. Customers are drawn to services that offer quick or same-day grocery delivery due to the growing desire for efficiency and convenience. Certain factors, such as urbanization, busy lifestyles, and the increasing use of cell phones and internet connectivity, have contributed to the acceleration of this trend. In Indonesia, where e-commerce is expanding quickly, particularly in major cities like Jakarta, quick delivery services are essential to satisfying customer demands. Online grocery retailers frequently compete with one another by providing quick delivery, sometimes even hours after the customer places an order.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Amazon.com, Inc., Luxo Food, Shopee, Tanihub Food Solutions, Happy Fresh, Club Sehat, Hypermart Online, Klik Indomaret, Seroyamart, SedapRasa, Blibli, and Others (Pasarwarga, Indo Groceries, etc.) are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry in the country?
4. How has the industry been evolving in terms of geography & service adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-2030?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?