Market share of online grocery retail in Indonesia 2020-2022

In 2020, the market share of online grocery retail in Indonesia stood at 0.3 percent. The market share was projected to reach 0.5 percent by 2022, indicating a steady growth of this grocery shopping channel in the Indonesian market. The coronavirus (COVID-19) pandemic that hit the country in early 2020 has been cited as one of the key factors that triggered the increase in the popularity of online retail channels among consumers.

The effects of the COVID-19 pandemic

The large-scale social restrictions (PSBB) enforced by the government to combat the spread of COVID-19 have led to an increase in online grocery shopping. The COVID-19 pandemic has impacted consumer online purchase behavior by making Indonesian consumers purchase more online. Convenience and avoiding the spread of the coronavirus (COVID-19) were among the reasons why Indonesian consumers preferred to shop online. A recent survey revealed that the majority of Indonesian shoppers had bought groceries online.

Shift in consumer behavior

A further impact of the PSBB included a change in the consumer shopping mindset. Out of concern for the economic impact of the pandemic, many Indonesian consumers have become more budget-conscious. Besides, reprioritization of essentials and health purchases among consumers was also noticeable during the pandemic.