Online set to be fastest growing Asia grocery channel, IGD
Asia’s online grocery sector is set to increase by $176 billion (194%) to 2022, making it the fastest growing channel in the region, according to IGD. It forecasts that online will account for 6.9% of total grocery retail sales in Asia by 2022, up from its current market share of 3.2%.
Grocery e-commerce sales across Asia’s top 12 grocery markets will grow to $267 billion from the current value of $91 billion. This represents an annual growth rate of 24.1% to 2022, compared to the overall grocery retail market annual growth rate of 6.4% over the same period.
Shirley Zhu, Programme Director at IGD, says: “The penetration, size and growth of online grocery varies greatly by country. South Korea, China and Japan are leading the way in online grocery shopping and will see the highest sales contribution from grocery ecommerce, while continuing to lead the development in the region.”
“Singapore and Taiwan will also have well developed online grocery channels by 2022, benefiting from existing infrastructure and retailer investment, while in Southeast Asian markets grocery e-commerce, although growing rapidly, is still in its infancy. Logistics and payment will be the key barriers to overcome for India and most Southeast Asian countries. Although these markets are expected to have the fastest growth, the market share of online grocery will remain small.”
