Market Trends of Asia-Pacific Online Grocery Delivery Industry
Retail delivery segment is anticipated to grow at a significant CAGR.
- The retail delivery segment dominated the market in 2020. The noteworthy share of the segment is attributed to the constant shopping of kitchen staples such as flour, refined oil, and grains during the lockdowns. During the lockdown, people were afraid that the food supply would be short as the supply chain was affected mainly, so people started stocking up the goods at home by ordering them online.
- Moreover, Increasing online delivery of dairy products and baked goods such as bread and muffins is expected to aid the segment in maintaining its dominance during the forecast period. Various online delivery services offer subscription-based delivery of dairy and baked goods as these are daily kitchen staples and do not have a longer shelf life. The subscription comes with daily, twice-a-week, and once-a-week deliveries, making it easy for the customers to choose as per their needs.
- After Retail delivery, the quick commerce segment is projected to grow significantly during the forecast period. A rising number of people are willing to pay more for fast deliveries and changing lifestyles and shopping habits. The people, such as top-up purchases and frequent unplanned grocery shopping sprees, have fuelled the demand for quick commerce services in the region.
- Although metro and tier-I cities are major contributors to the segment's growth, these cities already have saturated quick commerce services. All the market players are now focusing on tier-II cities in the Asia Pacific region. These cities have shown great potential for the growth of the segment in the past few years.
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China is projected to hold the largest share of the market.
- The country's growth is credited to the presence of multiple leading market players and the most significant number of online shopping consumers in the country. Amazon is the most preferred online grocery in the overall Asia Pacific region. However, various local delivery services are also fighting for dominance in the major cities in APAC. The shifting customer demographic and buyers becoming more comfortable with online shopping have been the major factors in developing the online grocery delivery market in the region.
- Additionally, in India, the government is encouraging the digital economy framework as well as digital literacy; owing to these things, the online grocery delivery market in India is anticipated to observe an additional spur in its growth.
- The market's growth is attributed to the customers in tier- I cities such as Delhi, Bangalore, Mumbai, and Chennai. These cities have high adoption of online grocery shopping as they have more resources than smaller cities, such as logistics, high-speed internet, and better access to smart devices. After the Covid-19 pandemic, the city population was more concerned about safety and hygiene as these cities faced most of the negative impact as they are densely populated.
- Such factors are turning out to be driving factors for the growth of the online grocery delivery market in the country. Moreover, the government making efforts to restore the supply chain and digitalization of the cities is also one of the key factors aiding the growth of the market.
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