Summary

The growth of e-commerce infrastructure in the Asia-Pacific region has been a major factor driving the growth of the online groceries market. With the increasing availability of high-speed internet, the rise of mobile devices, and the growth of online payment systems, consumers in the region are increasingly turning to online shopping for their groceries. E-commerce platforms such as Alibaba's Tmall and JD.com in China, Rakuten in Japan, and Lazada in Southeast Asia have made it easy for consumers to purchase groceries online, with convenient delivery options and a wide range of products to choose from. As disposable incomes in the Asia-Pacific region continue to rise, consumers are increasingly willing to spend more on groceries, including online. This has created an opportunity for online retailers to offer high-quality products and services that cater to the needs and preferences of this growing demographic. With a higher disposable income, consumers in the Asia-Pacific region are more likely to purchase premium products such as organic produce, high-quality meats, and imported goods, which are often available through online retailers. Consumer preferences in the Asia-Pacific region are also shifting towards more convenient and time-saving shopping experiences, which have driven the growth of the online groceries market. Many consumers in the region lead busy lives and prefer the convenience of having their groceries delivered to their doorstep, rather than having to visit a physical store. Online retailers are responding to this trend by offering flexible delivery options, such as same-day or next-day delivery, and by using technology such as GPS tracking to ensure that deliveries are made on time. The expansion of the regional market can be ascribed to government initiatives in countries such as India and China to promote e-commerce and digitization. For example, in June 2016, the Indian government declared that 100% FDI in food retail, including through e-commerce channels, would be permitted if the commodities were produced, processed, and manufactured in India.

According to the research report, “Asia-Pacific Online Groceries Market Outlook, 2028” published by Bonafide Research, the market is expected to grow with 29.17% CAGR by 2023-28. Asia Pacific accounted for the largest market share in 2022 and is expected to continue dominating the industry over the forecast period. Increased demand for the industry is being driven by factors such as rising population, increased disposable income, and sophisticated food-loving consumers across the region. Furthermore, greater mobile accessibility and broadband adoption are putting the old grocery-buying business model to the test, allowing customers to buy food from anywhere, at any time. Various societal changes, such as traffic congestion and extended working hours, have aided the development in popularity of online grocery shopping in Asia Pacific. Traffic congestion is a common occurrence in most Asian cities, making travel exceedingly difficult. Furthermore, Asian countries have the longest working hours, requiring the need to buy things online to save time and effort. As a result, the industry's growth is expected to accelerate. Population growth, increasing disposable income, and sophisticated food lovers across the region are among the factors driving the increase in demand for the industry. Furthermore, increased mobile accessibility and broadband adoption are challenging the traditional grocery-buying business model, allowing customers to buy food anywhere, anytime. Due to the mature Online Food Delivery market, China is by far the leader in the Online Grocery Delivery segment, with the most established companies leveraging existing logistics systems and a solid client base to increase their product offerings. Meituan, for example, has a well-established logistics network that allows it to deliver groceries in less than 20 minutes.

It is predicted to increase dramatically as governments in nations such as India and China adopt steps to boost e-commerce and digitization. As a result, digitalization may accelerate, and the online grocery sector may increase significantly. Online grocery shopping is extremely popular in Japan, China, and South Korea. Companies operating in East and South Asia are likely to face less competition. Both of these places also present significant opportunities for new entrants. The traditional grocery-buying business model is being challenged as mobile access and broadband adoption grow. Because of mobile accessibility and broadband usage, customers may now purchase meals from anywhere, at any time. As a result of road congestion and prolonged working hours, online grocery shopping has become increasingly popular in the Asia Pacific. In most Asian cities, traffic congestion is a regular phenomenon, making travel extremely stressful. Additionally, Asian countries like India have the longest working hours, which make it necessary to purchase products online so that time and effort are saved. Amazon India (Amazon's Indian subsidiary) recently announced plans to establish a speedier delivery platform (Kirana Now) in collaboration with traditional mom-and-pop retailers in India. Snapdeal (an Indian e-commerce company) has also announced collaboration with gourmet food shop Godrej Nature's Basket. Ocado Group PLC, J Sainsbury PLC, Tesco PLC, Wal-Mart Stores Inc., and Amazon are some of the online grocery market's competitors. The Asia Pacific region (APAC) is expected to have the fastest growth in this market in the coming years, owing to increased digitization of the economy by governments in this region's major countries and growing online retail store acceptance among people, especially in the current 'no contact' and 'social distancing' times.

AI-based tools are being used to drive personalization of the grocery shopping experience. In online grocery shopping, artificial intelligence is utilised to collect data about clients from numerous sources. The information is mostly gathered via offline outlets, internet channels, and user actions on the site. The data is then used to better understand the needs of the target clients. AI also assists grocery stores in keeping track of holidays, weather, seasonality, and festivals in order to better serve their customers. 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. Many customers want products delivered in as little time as possible, even within an hour of placing the order. They can now turn to the quick commerce, or q-commerce, segment. Many big retailers, such as Flipkart and BigBasket in India, provide q-commerce services. The quick commerce market is in its nascent stage, but many retailers plan to expand rapidly in the coming years. Based on the delivery type, the home delivery segment is growing with higher revenue generation in 2022. Home delivery is convenient for customers who do not have the time or means to go to a physical store. With online grocery shopping, customers can order groceries from the comfort of their own homes, without having to worry about transportation, parking, or carrying heavy bags. Home delivery is also a time-saving option for busy consumers who prefer to spend their time on other activities. With online grocery shopping, customers can save time by avoiding the crowds and long queues that are often associated with physical stores.

Based on the product type, staples & cooking essentials segment is dominating the market in 2022 and is expected to continue this dominance by the end of the forecast period. Staples and cooking essentials are leading in the Asia-Pacific online groceries market due to several factors, including their high demand, longer shelf life, and versatility in various cuisines. Staples and cooking essentials are essential items in every household and have a high demand in the Asia-Pacific region. These items include rice, flour, sugar, salt, and cooking oil, which are commonly used in many Asian cuisines. Online shoppers in the region often order these items in bulk quantities, and online grocery stores offer discounts and promotions to encourage bulk buying. Staples and cooking essentials are versatile ingredients that can be used in various cuisines. For example, rice is a staple in many Asian countries, while flour is used to make traditional dishes such as roti or noodles. Cooking essentials such as cooking oil and spices are also essential ingredients in many cuisines, and online shoppers often purchase these items to try out new recipes or to prepare traditional dishes. However, online shoppers in the Asia-Pacific region often order fresh produce such as fruits, vegetables, meat, and seafood. This is because they are perishable goods that need to be consumed quickly and online grocery shopping offers a convenient way to have them delivered directly to their doorstep.

The COVID-19 pandemic has led to an increase in demand for online groceries in the Asia-Pacific region. With people staying at home and avoiding crowded public places, online grocery shopping has become a more convenient and safer option for many consumers. Online grocery platforms are expanding rapidly in the Asia-Pacific region, with new players entering the market and existing players expanding their services to new regions. This is leading to increased competition and more options for consumers. Many online grocery platforms in the Asia-Pacific region are focusing on sustainability and environmentally-friendly practices. This includes using eco-friendly packaging materials, promoting local and organic produce, and reducing food waste. Online grocery platforms are investing in technology to improve their services and offer more convenience to consumers. This includes using artificial intelligence and machine learning to improve product recommendations and personalized offers, as well as investing in logistics and delivery technologies to improve the speed and efficiency of deliveries. Mobile apps are becoming increasingly popular among online grocery shoppers in the Asia-Pacific region. Online grocery platforms are developing mobile apps that offer a convenient and easy-to-use interface for ordering groceries and tracking deliveries. In addition to that, online grocery shoppers in the Asia-Pacific region are increasingly demanding premium and niche products. This includes items such as organic and health foods, artisanal products, and international cuisine ingredients.

Recent Developments:
• In November 2022, U.K.-based company Ocado announced its plans to automate its e-commerce warehouses in south Korea and South Asia with know-how push technology. The company plans to partner with the leading online grocers in the region, such as Coles in Australia, to promote its automated warehouses. The acceptance of advanced technology by the key players in the online grocery delivery market is aiding the overall growth of the market in the region.
• In February 2022, Rakuten Group, Inc announced the launch of its online grocery delivery service in Japan, “Rakuten Zenkoku Super.” Rakuten Zenkoku Super symbolizes the next move in the development of grocery shopping in Japan. The newly designed service is created to drive supermarkets nationwide to reach new areas and age groups of people by offering them a wide-ranging online grocery shopping platform. The platform is designed to deliver goods promptly to clients.
• In the same year, in India, Swiggy’s Instamart announced its partnership with a Mumbai-based quick commerce company Zepto. The partnership is anticipated to help both companies launch private-label products. Private-label products are the products that retailers sell under their brand name. Various e-commerce companies are selling private-label products as these products offer more margin to the retailer.
• In March 2022, Uber Technologies announced its plans to set up a network of “dark stores” in Japan. These stores are expected to help the company to speed up its rapid delivery services in the country. The service provided by uber is for delivering frozen as well as fresh produce and other grocery products within 30 minutes in Tokyo.

Major Companies present in the market:
Amazon, Alibaba, Tesco, Walmart Inc, Koninklijke Ahold Delhaize N.V.,, Rakuten Group Inc., Supermarket Grocery Supplies Private Limited, Zomato, Reliance Retail, Target Brands, Inc., Carrefour, Costco Wholesale Corporation, LuLu Hypermarket

Considered in this report
• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Asia-Pacific Online Groceries market with its value and forecast along with its segments
• Country-wise Online Groceries market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• China
• Japan
• India
• Australia
• South Korea

By Product Type
• Staples & Cooking Essentials
• Snacks & Beverages
• Breakfast & Dairy
• Fresh Produce
• Meat & Seafood
• Others

By Delivery Type
• Home delivery
• Click and collect

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the artificial lawn industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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