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Jul, 2022     

Indonesia EGrocery: Consumer Pulse Series

COVID accelerated demand for eGrocery sizing the market at ~$10 Bn in 2021 with an expected CAGR growth rate of over 26% till 2026

1. COVID accelerated demand for eGrocery sizing the market at ~$10 Bn in 2021 with an expected CAGR growth rate of over 26% till 2026

Amongst all the e-commerce categories in Indonesia, eGrocery has shown the highest growth rate post covid. A significant chunk of eGrocery users (~50%) started ordering groceries when the COVID-19 pandemic started, this further led to launch of quick and social commerce in grocery in the country. In terms of business models, horizontals continue to enjoy a disproportionately large share (~+90%) of the overall eGrocery market however other models are also catching up and growing at a fast rate.

2. ~65% of the users are spending between IDR 150k to 450k on eGrocery in Indonesia with almost half of the users’ placing orders once a week


~90% of the respondents have used eGrocery services in the last 3 months, a significantly high number implying the strong affinity and usage rate amongst users even after the COVID pandemic impact subsiding in the country. As the market further matures up, we can expect a rise in both the AOV as well as the order frequency. Interestingly, a major group (in high single-digit %) of eGrocery users in Indonesia have also opted for a subscription-based model to purchase groceries online, implying the continuing/ repetitive buying pattern of the users and to take advantage of offers and promos offered by players to subscription-based users.

3. Players with attractive offers/ pricing, faster deliveries and wider assortment are well positioned to win in the Indonesia eGrocery market


Convenience along with incentives in the form of deals and offers provided by eGrocery players are the most important factors enabling eGrocery usage in Indonesia. For more than half of the respondents (~+60%), these 2 criteria were the drivers for eGrocery usage. This highlights the importance for eGrocery players to have streamlined operations and competitive pricing to emerge as successful players.

In terms of pain points longer delivery time is the single biggest concern for eGrocery users in Indonesia followed by expensive delivery fees and poor-quality grocery getting delivered to them.

Thus, players who can offer fast delivery at reasonable pricing/ low delivery fees are well positioned to win in the Indonesia eGrocery space.

4. Quick and Social commerce players lead in terms of regular and recent users however to improve awareness levels in line with horizontals and verticals, they need to expand and widen their customer footprint


Social commerce and quick commerce players have a higher usage rate compared to other business models however they are behind in terms of awareness. Currently the focus of quick commerce players is only in certain niche areas of the Jabo region in Indonesia while social commerce is focussed on tier 2 and tier 3 cities. Quick commerce players can up their game by going beyond just grocery and extend their offerings to other consumables, electronics, newspapers, and more. Social commerce depends on an ecosystem of resellers and other allied players and as the penetration and adoption for social commerce rises in this ecosystem, the customer mindshare will also rise. For horizontal players, it is important to widen the category offerings within the grocery segment to improve on their awareness levels and generate greater customer usage as well as stickiness.

5. Horizontal platforms have a higher NPS compared to verticals possibly due to extensive supply chain/ distribution networks and the ability to offer better discounts and promos

Horizontal platforms (NPS scores ranging between 50% to 70%) seem to perform slightly better compared to verticals (NPS scores ranging between 30% to 70%) as the number of detractors for the vertical players are slightly higher leading to an overall lower NPS compared to the horizontal platforms. Horizontals can offer better pricing and wider variety of products which are some of the most important criteria for users and thus are able to secure a higher rating compared to players operating under the other business models.