Grocery Delivery - Vietnam | Statista Market Forecast

In Vietnam, the projected revenue in the Grocery Delivery market is estimated to reach US$1.77bn in 2024.
It is expected to experience a compound annual growth rate (CAGR 2024-2029) of 13.42%, resulting in a projected market volume of US$3.32bn by 2029.
The Retail Delivery market, on the other hand, is projected to have a market volume of US$1.09bn in 2024.
When compared globally, China is expected to generate the highest revenue of US$266.00bn in 2024.
In terms of the average revenue per user (ARPU) in the Grocery Delivery market, it is projected to amount to US$113.10 in 2024.
Additionally, the number of users in the Grocery Delivery market is expected to reach 22.1m users by 2029.
Finally, the user penetration in the Grocery Delivery market is forecasted to be at 15.7% in 2024.
Vietnam's grocery delivery market is experiencing rapid growth, driven by the increasing demand for convenient and contactless shopping options in urban areas.

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)

The demand for grocery delivery services in Vietnam has been on the rise in recent years.

Customer preferences: Vietnamese consumers are increasingly turning to online grocery shopping due to the convenience it offers. With the busy lifestyles of modern consumers, the idea of having groceries delivered to their doorstep has become more appealing.

Trends in the market: The grocery delivery market in Vietnam has seen a significant increase in the number of players in recent years. Both local and international companies are competing to capture a share of the market. This has led to increased innovation in terms of delivery options and payment methods. Additionally, there has been a shift towards more sustainable and eco-friendly packaging options.

Local special circumstances: Vietnam's geography, with its long coastline and many rivers, has led to a unique distribution network for groceries. Many small boats and barges transport goods to remote villages and towns, making it challenging for traditional brick-and-mortar retailers to reach these areas. Grocery delivery services have been able to fill this gap in the market by offering delivery to even the most remote locations.

Underlying macroeconomic factors: Vietnam's growing middle class and increasing urbanization have contributed to the growth of the grocery delivery market. As more people move to cities, the demand for convenient and efficient delivery services has increased. Additionally, the COVID-19 pandemic has accelerated the adoption of online shopping in Vietnam, as consumers have become more cautious about going to physical stores. The government's efforts to promote e-commerce and digitalization have also contributed to the growth of the grocery delivery market.

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.