With a compound annual growth rate of 5.2%, Indonesia will become the fourth largest grocery market in Asia

At present, the lifestyle of most people is dominated by the use of digital technology and the Internet. Especially during the COVID-19 pandemic , the Internet has become a basic necessity for society.

According to the latest market forecast by food and consumer goods research group IGD Asia, Indonesia’s one-stop market will be worth US$169.4 billion (IDR2,456 trillion) in 2022, up from US$140.2 billion in 2019. A two-year compound annual growth rate of 5.2% is forecast , which would make Indonesia the 13th largest wholesale market in the world.

Indonesia is expected to become Asia’s fourth-largest grocery market by 2022, after China, India and Japan , thanks to the support of e-commerce.

Nick Miles, CEO of IGD Asia Pacific, said: " After the COVID-19 pandemic restricted offline shopping , retailers and technology companies including Alibaba have recognized the opportunity of online retail . The emergence and growth of this channel will be supported by the increase in smartphone penetration and the recovery of people's purchasing power . "

Growing interest among Indonesian consumers in shopping through online marketplaces and other platforms has driven a surge in grocery sales in the country .

Market research agency Neurosensum predicts that 48% of Indonesian consumers will buy groceries online during Ramadan (mid-April to May) in 2021, compared to the previous year. Meanwhile, more than 33% of consumers will buy non-food items online.

Although the company expects Ramadan spending to fall by 0.4% year-on-year in 2021, dragged down by Indonesia's middle and low-income groups, overall, online sales are expected to increase their market share to 37% this year during Ramadan , from 33% in 2020.

Sales of products such as alcoholic and sweetened beverages , cosmetics and clothing are expected to decline , while sales of products such as health products , telecommunications services and home entertainment are expected to increase year by year.

Indonesia

Grocery Market

Online Sales