Internet
Increase in E-Commerce Penetration coupled with Development of Infrastructure - Dark Stores and Micro Fulfilment Centres across The Archipelago Will drive the Indonesia Online Grocery Market: Ken Research
: 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.
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 titled 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.
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.
India's online grocery battle has been heating up fueled by the pandemic-related surge in the demand, offline retailers' growing Omni channel presence, and the arrival of big players in market. The market has grown at an increasing growth rate over the period FY'2017-FY'2022, supported by the increase in continuous growth of population in the country along with growing internet penetration and rising use of e-platforms. Indian consumers have been evolving dynamically in their quest for convenience, health, and value with the pandemic that forced everyone to stay home further accelerated these trends along with the changing needs and preferences of consumers. Factors such as boom of digital literacy, ease of usage, wide availability of branded products, economic value with price comparison across brands, offers & deals, express delivery driving the Online Grocery Market in India . The convenience and increasingly personalized experiences offered by online grocery platforms have long been appealing to consumers which is surging the demand for e-Groceries.
Gaps in offline grocery shopping such as inconvenience of commute, long payment queues and cost of impulse buying led to the introduction of the e-grocery delivery in Vietnam . 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 CAGR between 2016 and 2021P. High internet penetration, rising working population and increasing number of single families has led to the growth of e-grocery services in Vietnam . Companies have expanded their product portfolios from food & beverages to household supplies, fresh food, fish & meat and other product categories.
Ken Research
Ankur Gupta , Head Marketing & Communications
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