Grocery retailers' sales Indonesia 2023, by type

In 2023, the retail sales of traditional grocery retailers in Indonesia amounted to approximately 78.9 billion U.S. dollars. The food retail industry in Indonesia depends heavily on traditional grocery retailers’ distribution. However, there has been an increasing use of online shopping channels to purchase food and groceries among consumers in recent years. 

The rise of e-commerce in the food retail industry

The COVID-19 pandemic has shifted the distribution channel structure in the food retail industry. Social and mobility restrictions during the pandemic have driven growth in the use of e-commerce for food and grocery purchases. In 2022, consumers’ e-commerce spending on food in Indonesia was estimated to experience a positive change of approximately 17 percent, indicating the growing popularity of the shopping method. This new shopping habit has reshaped the Indonesian retail industry ecosystem and further contributed to the increasing revenue share of online retail in Indonesia’s food market in the last few years.

Consumer food preferences

Current food trends among Indonesian consumers have influenced their behavior toward food. Apart from being health conscious, Indonesian consumers are also becoming more aware of the impact of their food purchases on the environment. An increasing number of consumers in Indonesia are striving for sustainability in their food purchases, such as using their refill and reusable items when shopping for food. A recent study also shows that they are willing to pay more for green products.