Grocery Delivery - Indonesia | Statista Market Forecast

In 2024, the projected revenue in the Grocery Delivery market in Indonesia is estimated to reach US$13.40bn.
This market is expected to experience a steady annual growth rate (CAGR 2024-2029) of 18.34%, resulting in a projected market volume of US$31.10bn by 2029.
In comparison, the Retail Delivery market is projected to have a market volume of US$10.58bn in 2024.
When looking at global figures, China is expected to generate the highest revenue in 2024, reaching US$266.00bn.
Indonesia's Grocery Delivery market is projected to have an average revenue per user (ARPU) of US$220.70 in 2024.
Additionally, the number of users in this market is expected to reach 87.3m users by 2029.
The user penetration rate in the Grocery Delivery market is estimated to be 21.7% in 2024.
The demand for online grocery delivery services in Indonesia has surged due to the growing urban population and increasing digital adoption.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

Grocery delivery has become a popular trend in Indonesia, with a significant rise in demand over the past few years. The market has been growing rapidly, with several players entering the market and offering their services to customers.

Customer preferences: Indonesian customers are increasingly turning to online grocery shopping and delivery services due to the convenience they offer. The country has a large population and a growing middle class, which has led to a rise in demand for grocery delivery services. Customers prefer to shop for groceries online as it saves them time and effort, and they can have their groceries delivered to their doorstep. The COVID-19 pandemic has also contributed to the growth of the grocery delivery market, as people are hesitant to visit physical stores.

Trends in the market: The grocery delivery market in Indonesia is dominated by a few major players, with several smaller players also offering their services. These players are constantly innovating and improving their services to meet the needs of their customers. One of the major trends in the market is the use of technology to improve the delivery experience. Some players are using drones to deliver groceries, while others are using artificial intelligence to predict customer preferences and offer personalized recommendations.

Local special circumstances: Indonesia has a unique geography, with thousands of islands spread across the archipelago. This poses a challenge for grocery delivery companies, as they need to ensure that they can deliver groceries to even the most remote locations. Additionally, the country has a diverse population with different dietary requirements and preferences. Grocery delivery companies need to cater to these diverse needs to be successful in the market.

Underlying macroeconomic factors: Indonesia has a large and growing middle class, which is driving the growth of the grocery delivery market. The country's economy has been growing steadily over the past few years, which has led to an increase in disposable income. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping, including grocery shopping. These factors are expected to continue to drive the growth of the grocery delivery market in Indonesia in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.