Increasing demand for Express Delivery coupled with Growing Internet User's in the Vietnam will drive the Online Grocery Market: Ken Research

Impact of Covid-19: The online grocery Industry in Vietnam witnessed a triple digit growth during the Covid-19 pandemic as people avoided going to crowded places and shifted to buying grocery online. Companies experienced a surge in average order size as customers were shopping in bulk. Average delivery time also increased to seven to ten days.  In order to fulfil the increased demand, companies expanded their delivery fleet by partnering with third party delivery companies to manage last-mile logistics.

India, 30/05/2022 (informazione.it - comunicati stampa - internet)

The online grocery Industry in Vietnam witnessed a triple digit growth during the Covid-19 pandemic as people avoided going to crowded places and shifted to buying grocery online. Companies experienced a surge in average order size as customers were shopping in bulk. Average delivery time also increased to seven to ten days.  In order to fulfil the increased demand, companies expanded their delivery fleet by partnering with third party delivery companies to manage last-mile logistics.

: It is anticipated that companies would be expanding tie ups with suppliers & grocery stores, food delivery companies, e-wallet companies to leverage their capabilities to fulfil customer orders. Introduction of express delivery, regional expansion, diversification of product portfolio, focus on achieving operational efficiency and establishment of dark store are the future strategies that can be adopted the companies.

Drone Technology, Voice Ordering, Artificial Intelligence, Warehouse Automation is anticipated to drive the online grocery delivery market in future. Incorporating AI in front end would enable the company to create personalized shopping experience for the customer. Demand prediction and consumer behaviour analysis is crucial to ensure sufficient availability of products and to maintain minimum wastage.

According to the report by Ken Research titled  the Online Grocery Delivery Market will grow at a CAGR of 20.4% during the period 2021P – 2026F. The market will witness growth owing to changing purchasing habits of consumers, rapid growing e-commerce awareness and introduction of subscription models & innovative strategies adopted by service provides.

Gaps in offline grocery shopping such as inconvenience of commute, long payment queues and cost of impulse buying led to the introduction of e-grocery in Indonesia . Indonesia online grocery market is currently positioned at a growth stage, and increasing at a staggering double-digit growth rate during the period 2016 and 2021P. Covid-19 Pandemic acted as a catalyst to the Indonesia's E-grocery market's growth. The number of companies offering e-grocery services in Indonesia has increased over the years. Moreover, high penetration of internet, growing working population and rising number of single families has 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.

KSA Online Grocery Delivery service gained traction among consumers as it allows customers to avoid the hassle of crowds, payment & parking queues and offers convenience as one doesn't need to be at home to pick up the order. Major grocery delivery companies entered the market between 2016 and 2018. Smartphone users aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 44% between 2017 and 2019.

Changing consumer preferences, high smartphone penetration, and regional expansion of local and international players led to the growth of online grocery services in the Kingdom.  Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.

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 delivery in the UAE. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 31% between 2016 and 2019. High internet penetration, rising working population, and an increasing number of single families have led to the growth of e-grocery services in the UAE.  The number of companies offering grocery delivery services in the UAE has increased over the years. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.

 Ken Research
Ankur Gupta , Head Marketing & Communications

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