Online Grocery Retail In Asia Set To Double By 2022: IGD
A new report by market research firm IGD suggests that growth of the online grocery channel in Asian countries could reach new highs in the next four years.
The online channel, which represents 3.2% of total grocery sales in Asia, could double by 2022, IGD said, accounting for 6.9% of the market – more than double its current share.
Across Asia’s top 12 grocery markets, the value of e-commerce sales will rise to $267 billion, up from its current value of $91 billion, representing an annual growth of 24.1%, the report says.
As the biggest retail market both regionally and globally, China is expected to see the majority of that growth. The Chinese online retail market is already three times as big as the US market, and IGD estimates that will grow by a further 286% to 2022, representing 11% of all grocery sales, up from 3.8% currently.
While some countries such as Japan have been pioneers in the online channel, the whole region is set to experience massive growth according to Shirley Zhu, Programme Director at IGD
“The penetration, size and growth of online grocery varies greatly by country," she said. "South Korea, China and Japan are leading the way in online grocery shopping and will see the highest sales contribution from grocery e-commerce, while continuing to lead the development in the region.”
On China particularly, she added, "Physical retailers in China, having recognised the importance of the online and digital channel, are collaborating with e-commerce and delivery partners to offer more targeted ranges, promotions and expanding their omnichannel presence.”
This predicted growth is very much in line with the focus that global retailers have placed on the Chinese and Asian markets in the last few years.
During a recent interview for ESM, Thierry Garnier chief executive of Carrefour China explained how the group is using the country as a template for the integration of technology into the retail space.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.