Indonesia's online grocery market to surge to $169.4 billion by 2022

According to foreign media reports, Indonesia's grocery market may be worth US$169.4 billion in 2022, becoming the fourth largest grocery market in Asia after China, India and Japan.

Indonesia is the largest country in Southeast Asia, with a population of over 273 million. Due to the impact of the epidemic, the Indonesian government has implemented a large-scale social restriction (PSBB) policy in the past year and a half, which has prompted the development of online shopping (especially the online grocery market). According to data, in early 2020, the number of online grocery platforms and users in Indonesia showed a clear upward trend.

Redseer published a survey report saying that during the pandemic, the number of online shoppers in Indonesia increased from 75 million to 85 million. It expects the country's e-commerce gross merchandise value (GMV) to reach US$40 billion by 2021, ranking third in the world after China and India.

As of now, the demand for online groceries in Indonesia has surged to a terrifying degree. In terms of e-commerce penetration, a 2020 Facebook and Bain & Company study estimated that the region's grocery market e-commerce penetration rate was only 0.3%, while retail industry consulting firm Institute of Grocery Distribution (IGD) expects India's e-commerce penetration rate to reach 0.5% by 2022.

In addition to this, another 2020 Southeast Asia e-commerce report by Google, Temasek and Bain & Company predicts that Indonesia’s e-commerce transaction volume is expected to grow by nearly 160% in the next five years, with GMV expected to reach US$83 billion in 2025.

A report by the ISEAS-Yusof Ishak Institute stated that some e-commerce sellers revealed that sales of food, detergents, sanitation facilities, health masks, vitamins, cooking utensils, video games and sports equipment increased during the epidemic. In just two months from March to May 2020, the GMV of some e-commerce companies increased by at least 50%.

At present, Indonesia's online grocery market is booming and will attract a large number of new investors and entrepreneurs. The consumer market has huge potential, and perhaps many sellers will enter the Indonesian market.

Indonesia

groceries

E-commerce