Online grocery market in Asia to skyrocket 198% to US$295b by 2023

South Korea, Japan, and China are poised to have the most established online grocery market.

By 2023, online grocery in Asia will account for 7.6% of total retail sales in the region, double its current market share.

At the same time, the market is projected to grow 198% from its current value of $134.24b (US$99b) to $400b (US$295b), retail researcher IGD Asia reported.

This represents a compound annual growth rate of 24.4%, compared to 6.2% for the overall grocery retail market over the same period – making online the fastest-growing format in the region.

IGD Asia programme director Shirley Zhu noted that South Korea, Japan, and China will have the most established online grocery market in terms of market share and scale. Singapore and Taiwan will have well-developed online grocery channels, whilst the online grocery market will remain small in Southeast Asia.

“Singapore will firmly establish itself as the most advanced online grocery market in Southeast Asia,” said Zhu. “Competition here is fierce; retailers are building scale by attracting more customers, whilst also investing in technology for long-term growth.”

Zhu advised suppliers to have a dedicated strategy for each country and to evaluate the products offered. The director added that suppliers should also keep a close eye on new innovations on mobile, delivery and payment.