Online grocery set to become the fastest growing channel in Asia
The new research anticipates grocery e-commerce sales across Asia’s top 12 grocery markets will grow to $267bn from the current value of $91bn. This represents an annual growth rate of 24.1% to 2022, compared to the overall grocery retail market annual growth rate of 6.4% over the same period. Shirley Zhu, Programme Director at IGD, said: “The penetration, size and growth of online grocery vary greatly by country. South Korea, China and Japan are leading the way in online grocery shopping and will see the highest sales contribution from grocery e-commerce while continuing to lead the development in the region.
Singapore and Taiwan will also have well developed online grocery channels by 2022, benefiting from existing infrastructure
and retailer investment, while in Southeast Asian markets grocery e-commerce, although growing rapidly, is still in its infancy. Logistics and payment will be the key barriers to overcome for India and most Southeast Asian countries. Although these markets
are expected to have the fastest growth, the market share of online grocery will remain small.”
Despite South Korea maintaining a higher online grocery market share in 2022, China will strengthen its position as Asia’s largest online grocery market, with sales set to reach $185bn. With well developed online grocery operations already, Japan and South Korea will see online grocery market shares increase, but growth will be relatively slow compared to other markets in the region. From a very low base, online grocery sales in India and Indonesia are forecast to grow rapidly over the next five years due to a combination of retailer investment, a large population and improving infrastructure. With a solid foundation of online grocery retail already established, Taiwan and Singapore will remain important markets to watch. Across Southeast Asia, IGD’s research anticipates rapid growth over the next five years, although the market share of online grocery will remain < 2% in all markets. The Philippines and Vietnam are expected to have the fastest growth, with retailers starting to experiment.
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