Indonesia Online Grocery Market Report and Forecast 2032

Indonesia Online Grocery Market Insights & Analysis

The Indonesia Online Grocery Market was USD 3.3 Billion in 2023 and is anticipated to register a CAGR of around 23.5% during the forecast period, i.e., 2024-32. This is attributed to the growing middle-class income & the booming penetration of internet across the national landscape. With the growing technological advancement, evolving consumer preferences, and market competition the industry is destined to flourish in the progressing years. The growing acceptance of online shopping across all sectors, such as grocery, has accelerated owing to the aspects, like urbanizations & hectic lifestyle of individuals, which have drove a shift in the customer behavior towards convenience & digitalization.

Furthermore, in line with this, well-known e-commerce sites & specialized online grocery stores in Indonesia have been increasing their efforts to make online grocery more convenient, providing the option to select from wide variety of goods, and getting them at affordable or discounted price, along with prompt delivery. Along with this, the e-commerce sector of the country is also working to make the online process more efficient, letting the consumer shop anything just sitting at one place and get it delivered at their doorsteps. Hence, this, in turn is aiding in creating a positive Indonesia E-commerce Market outlook.

Additionally, the increasing deployment of new technologies by competitors across the E-commerce Market of Indonesia, as well as the introduction of tech –based delivery choices, like voice ordering, drone delivery, and automated warehouses is also expected to enhance the Indonesia Online Grocery Market size during 2024-32. Besides, businesses are encouraged to focus on strengthening their relationships with suppliers and grocery stores in order to meet consumer demands. Thus, this would eventually lead to market contraction in the forecast years, when large companies would overtake or acquire small or minor companies.

Moreover, the development of digital methods & better last-mile logistics infrastructure has made it easier for the online grocery sector to expand, resolving logistical problems & improving the entire shopping experience for the customers. The Indonesia Online Grocery Industry presents opportunities for innovation, market expansion strategies, and alliances. It is also geared for continuous growth owing to positive demographic trends, ongoing digitalization of payments, and growing usage of smartphones. Consequently, with the considered aspects the market competitors could leverage the opportunistic arenas and work to transform the industry landscape & elevate the Indonesia Online Grocery Market share in the forthcoming years.

Indonesia Online Grocery Market Dynamics

• Influx in the Penetration of Internet with the Growing Adoption of Smartphones

Indonesia’s high rate of internet usage has completely revolutionized the purchasing habits of the consumers, especially across the e-commerce sector and is also contributing in fueling the expansion of the Online Grocery Market. According to the Datareportal, there were around 185.3 million of internet users across the country’s landscape, which is an increase of 1.5 million (0.8%) from 2023. Individuals who have an easy access to internet connection enjoys the ease of browsing & are able to order any essential via smartphones, from the comfort of their homes or any other place, saving the time & energy to visit the grocery store personally.

Also, with online shopping customer may be able to avoid holding huge quantities of items in their hands while travelling & rather can take advantage of quick online delivery service at their doorsteps, sparring them from traffic jams & long ques as well. Furthermore, mobile apps for grocery shopping have being working to improvise, providing user-interface & features like real-time order tracking experiences, satisfying consumer engagement. Consequently, high adoption of smartphones & better internet connectivity supports the advancement of e-commerce sector, further driving the Indonesia Online Grocery Market.

• Issues Regarding Digital Payment & Frauds to Limit the Online Grocery Market Growth in Indonesia

Although digital payments are becoming more & more common, security & fraud-related concerns remain major issue, as the consumers are worried about the security of their financial information & privacy, thus are still hesitant to use digital payment methods. For example, as per the research by FICO Research, the real-time payment frauds are on the surge across Indonesia, with nearly 64% users reported receiving suspicious messages & around 49% claiming that their friends or family members have been the victim of digital scams. Thus, the consumers, still are facing issues related to online transactions, making them hesitant to use digital payments, and eventually negatively effecting the growth of the Indonesia Online Grocery Market.

• Technology-based Solutions to Elevate Industry Expansion

With the resolutions of logistical issues & the improvement of efficiency, the deployment of technologically-based solutions is propelling the expansion of the Online Grocery Market in Indonesia. The delivery firms of the grocery are embracing several innovative upgrades, such as drone deliveries, real-time tracking, and warehouse automation to streamline supply chains & distribution network, owing to the unique landscape of the nation’s Online Grocery Industry. Furthermore, these technologically advanced initiatives are not just increasing operational efficiency, but also boosting consumer satisfaction, building confidence, and gaining demand, thus creating a trend across the market of Indonesia.

Indonesia Online Grocery Market Segment-wise Analysis

By Age Group:

• 18-24 years
• 25-37 years
• 38-44 years
• 45+ years

With the high usage of smartphones & busy lifestyle, the consumers falling under the age group of 25-37 years holds the potential share of the Indonesia Online Grocery Market, and is foreseen to witness an upward trend during 2024-32. Consumers under this category are often busy working professionals with families, who have less time to go for grocery shopping physically. Thus, looking at the comfort and easy access to grocery stores via smartphones, individuals under this age group prefer doing online shopping, further adding to enhance the Indonesia Online Grocery Market share. Also, due to the convenience, efficiency, and access to the wide range of products with discounts or offers, the market is seen to be infusing in the future years.

By Mode of Delivery:

• Express Delivery (30 Minutes to 120 Minutes)
• In a Specific Time Period (Same Day or Next Day)
• Other (2-3 Days or More)

Given the fast-paced lifestyle & changing consumer preference, Express Delivery (30 Minutes to 120 Minutes) is gaining traction across the Indonesia Online Grocery Market. The population of the country appreciates the ease & time-saving benefits of getting the grocery items on time, especially in metropolitan cities. Express delivery services meet the requirements of delivering the things instantly in a very little time, further promising prompt & effective order fulfillment, thus contributing to the Online Grocery Market share.

Additionally, the competitive environment has forced online grocery platforms to set themselves apart with quick deliveries, developing a strong value offer. Also, rapid delivery is a major factor in the rising popularity of the online grocery services in Indonesia, which is primarily due to the improved logistics & technology advancements.

What Does Our Indonesia Online Grocery Market Research Study Entail?

• Indonesia Online Grocery Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• Indonesia Online Grocery Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.