Singapore Online Grocery Market Report and Forecast 2032

Singapore Online Grocery Market Insights & Analysis

The Singapore Online Grocery Market is valued at USD 1.1 Billion in 2024 and is anticipated to register a CAGR of around 8% during the forecast period, i.e., 2024-32. The expansion of the industry is attributed to evolving consumer behavior & technological advancements. Nowadays, as consumers prefer the ease of ordering things from anywhere at any time, just sitting on their comfort couch, is aiding in influencing the growth of the Online Grocery Market in Singapore. The ability to order groceries online & have them delivered right to your doorsteps saves time & effort for those with busy & hectic schedules, and have very little time to visit stores physically.

Also, the high adoption of smartphones, growing penetration of the internet, rising deployment of advanced technologies, like AI-driven recommendation bots, and automated delivery systems are creating a wide market ground for online grocery services, by making them more efficient & user-friendly options. Also, with the growing e-commerce there is availability of a wide range of products, which are sometimes not even available at the physical stores, thus attracting customers seeking specialized items.

Along with this, several advancements & innovations like same-day delivery options, contactless payments, fast deliveries within a few minutes, automated delivery systems, etc., are contributing to enhancing the Singapore Online Grocery Market size. Moreover, online grocery shopping is also economically appealing to locals due to the large range of products offered on platforms with competitive prices & promotional offers. For example, a YouGov poll from 2023 indicated that when ordering takeaways, more than two-fifths of the Singapore population are conscious of the cost.

In addition, the growing e-commerce owing to the government’s investments in infrastructure development & support towards digitalization is creating a conducive environment for online grocery platforms. Further, due to the user-friendly interface & effective delivery services, these platforms have contributed to an overall better user experience, which has raised customer satisfaction across Singapore. Consequently, in line with the growing interest of individuals towards e-commerce platforms.

Singapore Online Grocery Market FY32

• Study Period: 2024- 2032


• Base Year: 2022


• CAGR(2024-2032): 8%


• Market Value 2024: USD 1.1 Billion


• Major Players: Lazada Group, FairPrice Online, Shopee, Cold Storage Online, Amazon Singapore, Komalas Vegemart Pte Ltd., Sheng Siong, Grocer, Food Panda, and Other

Singapore Online Grocery Market Dynamics

• Benefits of Greater Convenience & Time Saving Aspects to Drive the Market Growth

Online Grocery shopping has become more & more popular in Singapore, where people value time & live a fast-paced lifestyle. Online grocery service, offers a convenient option for these people by saving their time by visiting stores physically and shopping the groceries. This platform aids in meeting the demands of working professionals & families by offering the freedom to purchase any product wherever & whenever they feel to.

Furthermore, online grocery shopping maximizes the utilization of resources, freeing up consumers’ time for other worthwhile pursuits in a dynamic economy. These services are becoming more & more popular in Singapore due to the appeal of increased convenience & time-saving benefits, thus the Singapore Online Grocery Market is growing at a faster pace.

• Hindrance in Infrastructure to Create a Barrier to Market Expansion

Singapore’s densely populated area & small size place limitations on the infrastructure needed for distribution & storage creating a challenge for the Online Grocery Market. Owing to the scarcity of land for warehouses & fulfillment centers, online grocery providers frequently face difficulties in establishing their facilities in close proximity to residential areas. This distance results in longer delivery time & higher transportation-related operating expenses. Furthermore, this issue is made more financially challenging owing to Singapore’s high real estate cost, which makes it difficult to find suitable storage space close to the targeted audiences.

Consequently, in order to strike a balance between the requirement for efficient operations with the financial limits imposed by the competitive market environment, providers frequently rush to make crucial decisions about the allocation of resources. Hence, these infrastructure concerns are limiting the growth of the Singapore Online Grocery Market, further negatively affecting the revenue growth as well.

• Rise of Subscription-based Models to Create a Positive Market Outlook

The rising acceptance of recurrent delivery services & subscription-based business models is becoming a new trend across the Singapore Online Grocery Market. Consumers in the country have access to a multitude of online grocery platforms that offer subscription services, allowing them to schedule weekly or monthly deliveries of necessities, including groceries, household essentials, and fresh fruits & vegetables. Several benefits that these models offer are free shipping, lowered costs, and tailored suggestions based on the previous purchase.

Furthermore, this pattern reflects how grocery shopping is becoming more predictable & convenient as people seek for easy ways to make sure their homes are constantly stocked with every essential. Additionally, online grocery stores in Singapore capitalize from subscription-based models as they not only offer user convenience but also increase consumer loyalty & recurring revenue streams.