Indonesia Online Grocery & Last-Mile Delivery Market

Indonesia Online Grocery & Last-Mile Delivery Market is worth USD 15 Bn, fueled by rising internet penetration, urban lifestyles, and demand for convenient delivery in cities like Jakarta and Surabaya.

Region:Asia

Author(s):Dev

Product Code:KRAB5486

Pages:80

Published On:October 2025

About the Report

Base Year 2024

Indonesia Online Grocery & Last-Mile Delivery Market Overview

  • The Indonesia Online Grocery & Last-Mile Delivery Market is valued at USD 15 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of e-commerce, urbanization, and a shift in consumer behavior towards online shopping, especially in the wake of the COVID-19 pandemic, which accelerated digital transformation across various sectors.
  • Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their high population density, robust infrastructure, and a growing middle class with increasing disposable income. These urban centers are also characterized by a tech-savvy population that readily embraces online shopping and delivery services.
  • In 2023, the Indonesian government implemented regulations to enhance the online grocery sector, including the requirement for e-commerce platforms to register with the Ministry of Trade. This regulation aims to ensure consumer protection, improve service quality, and promote fair competition among online retailers.
Indonesia Online Grocery & Last-Mile Delivery Market Size

Indonesia Online Grocery & Last-Mile Delivery Market Segmentation

By Type:The market is segmented into various types, including Fresh Produce, Packaged Groceries, Household Essentials, Personal Care Products, Beverages, Snacks, and Others. Among these, Fresh Produce is gaining traction due to the increasing demand for organic and locally sourced food items, driven by health-conscious consumers. Packaged Groceries also hold a significant share as they offer convenience and longer shelf life, appealing to busy urban dwellers.

Indonesia Online Grocery & Last-Mile Delivery Market segmentation by Type.

By Sales Channel:The market is segmented into Direct-to-Consumer, Third-Party Marketplaces, Subscription Services, and Social Media Platforms. Direct-to-Consumer channels are becoming increasingly popular as brands seek to establish a direct relationship with their customers, enhancing brand loyalty and customer experience. Third-Party Marketplaces also play a crucial role, providing a platform for various sellers to reach a broader audience.

Indonesia Online Grocery & Last-Mile Delivery Market segmentation by Sales Channel.

Indonesia Online Grocery & Last-Mile Delivery Market Competitive Landscape

The Indonesia Online Grocery & Last-Mile Delivery Market is characterized by a dynamic mix of regional and international players. Leading participants such as Gojek, Grab, HappyFresh, TaniHub, Sayurbox, Alfamart, Indomaret, Bukalapak, Tokopedia, Shopee, Lazada, Kecap Manis, BliBli, Roti Bakar 88, Warung Pintar contribute to innovation, geographic expansion, and service delivery in this space.

Gojek

2010

Jakarta, Indonesia

Grab

2012

Singapore

HappyFresh

2014

Jakarta, Indonesia

TaniHub

2016

Jakarta, Indonesia

Sayurbox

2016

Jakarta, Indonesia

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Customer Acquisition Cost

Average Order Value

Customer Retention Rate

Delivery Time Efficiency

Market Penetration Rate

Indonesia Online Grocery & Last-Mile Delivery Market Industry Analysis

Growth Drivers

  • Increasing Internet Penetration:As of future, Indonesia's internet penetration rate is projected to reach 77%, with approximately 210 million users accessing online services. This surge in connectivity facilitates the growth of online grocery shopping, as consumers increasingly turn to digital platforms for convenience. The rise in smartphone usage, which is expected to exceed 90% of the population, further supports this trend, enabling seamless access to e-commerce platforms and last-mile delivery services.
  • Urbanization and Changing Lifestyles:Indonesia's urban population is anticipated to grow to 56% in future, driving demand for online grocery services. Urban dwellers often seek convenience due to busy lifestyles, leading to a shift from traditional shopping methods to online platforms. The increasing number of dual-income households, projected to reach 30 million, further emphasizes the need for time-saving solutions, making online grocery shopping an attractive option for many consumers.
  • Demand for Convenience and Time-Saving Solutions:A significant 70% of Indonesian consumers express a preference for online grocery shopping due to its convenience. The fast-paced lifestyle in urban areas has led to a growing demand for services that save time, such as same-day delivery. With the average consumer spending around IDR 1.5 million monthly on groceries, the online grocery market is well-positioned to capture this demand, offering tailored solutions that cater to busy lifestyles.

Market Challenges

  • Infrastructure Limitations:Indonesia's logistics infrastructure remains underdeveloped, with only 30% of roads in urban areas being suitable for efficient delivery. This poses significant challenges for last-mile delivery services, leading to delays and increased operational costs. The lack of reliable transportation networks and warehousing facilities further complicates the distribution process, hindering the growth of the online grocery market in various regions.
  • Intense Competition:The online grocery market in Indonesia is characterized by fierce competition, with over 50 active players vying for market share. Major players like Gojek and Grab are investing heavily in marketing and technology to attract consumers. This competitive landscape drives down profit margins, making it challenging for new entrants to establish themselves. As a result, companies must continuously innovate to differentiate their offerings and maintain customer loyalty.

Indonesia Online Grocery & Last-Mile Delivery Market Future Outlook

The future of Indonesia's online grocery and last-mile delivery market appears promising, driven by technological advancements and evolving consumer preferences. As mobile applications become increasingly sophisticated, they will enhance user experience and streamline operations. Additionally, the integration of AI and data analytics will enable companies to optimize logistics and personalize offerings. With a growing focus on sustainability, businesses that prioritize eco-friendly practices are likely to gain a competitive edge, appealing to the environmentally conscious consumer base.

Market Opportunities

  • Expansion of Delivery Services:The demand for rapid delivery services is on the rise, with consumers increasingly expecting same-day delivery options. Companies that invest in expanding their delivery networks and improving logistics efficiency can capture a larger market share. This trend is supported by the projected increase in urban population, which will further drive the need for reliable and fast delivery solutions.
  • Partnerships with Local Farmers:Collaborating with local farmers can enhance product offerings and support sustainable practices. By sourcing fresh produce directly from farmers, online grocery platforms can ensure quality and reduce supply chain costs. This approach not only appeals to health-conscious consumers but also fosters community relationships, creating a loyal customer base that values local sourcing and sustainability.

Scope of the Report

SegmentSub-Segments
By Type

Fresh Produce

Packaged Groceries

Household Essentials

Personal Care Products

Beverages

Snacks

Others

By Sales Channel

Direct-to-Consumer

Third-Party Marketplaces

Subscription Services

Social Media Platforms

By Delivery Mode

Same-Day Delivery

Scheduled Delivery

Click and Collect

By Consumer Demographics

Millennials

Families

Seniors

By Geographic Coverage

Urban Areas

Suburban Areas

Rural Areas

By Product Origin

Local Products

Imported Products

By Price Range

Budget

Mid-Range

Premium

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Trade, Ministry of Transportation)

Logistics and Delivery Service Providers

Online Grocery Platforms

Payment Gateway Providers

Retail Associations

Consumer Advocacy Groups

Supply Chain Management Firms

Players Mentioned in the Report:

Gojek

Grab

HappyFresh

TaniHub

Sayurbox

Alfamart

Indomaret

Bukalapak

Tokopedia

Shopee

Lazada

Kecap Manis

BliBli

Roti Bakar 88

Warung Pintar

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Indonesia Online Grocery & Last-Mile Delivery Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Indonesia Online Grocery & Last-Mile Delivery Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Indonesia Online Grocery & Last-Mile Delivery Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Internet Penetration
3.1.2 Urbanization and Changing Lifestyles
3.1.3 Demand for Convenience and Time-Saving Solutions
3.1.4 Rise of E-commerce Platforms

3.2 Market Challenges

3.2.1 Infrastructure Limitations
3.2.2 Intense Competition
3.2.3 Consumer Trust Issues
3.2.4 Regulatory Compliance Hurdles

3.3 Market Opportunities

3.3.1 Expansion of Delivery Services
3.3.2 Partnerships with Local Farmers
3.3.3 Technological Innovations in Logistics
3.3.4 Growing Health Consciousness Among Consumers

3.4 Market Trends

3.4.1 Increased Use of Mobile Applications
3.4.2 Subscription-Based Grocery Services
3.4.3 Focus on Sustainable and Organic Products
3.4.4 Integration of AI and Data Analytics

3.5 Government Regulation

3.5.1 E-commerce Regulations
3.5.2 Consumer Protection Laws
3.5.3 Tax Incentives for E-commerce
3.5.4 Food Safety Standards

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Indonesia Online Grocery & Last-Mile Delivery Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Indonesia Online Grocery & Last-Mile Delivery Market Segmentation

8.1 By Type

8.1.1 Fresh Produce
8.1.2 Packaged Groceries
8.1.3 Household Essentials
8.1.4 Personal Care Products
8.1.5 Beverages
8.1.6 Snacks
8.1.7 Others

8.2 By Sales Channel

8.2.1 Direct-to-Consumer
8.2.2 Third-Party Marketplaces
8.2.3 Subscription Services
8.2.4 Social Media Platforms

8.3 By Delivery Mode

8.3.1 Same-Day Delivery
8.3.2 Scheduled Delivery
8.3.3 Click and Collect

8.4 By Consumer Demographics

8.4.1 Millennials
8.4.2 Families
8.4.3 Seniors

8.5 By Geographic Coverage

8.5.1 Urban Areas
8.5.2 Suburban Areas
8.5.3 Rural Areas

8.6 By Product Origin

8.6.1 Local Products
8.6.2 Imported Products

8.7 By Price Range

8.7.1 Budget
8.7.2 Mid-Range
8.7.3 Premium

9. Indonesia Online Grocery & Last-Mile Delivery Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Customer Acquisition Cost
9.2.4 Average Order Value
9.2.5 Customer Retention Rate
9.2.6 Delivery Time Efficiency
9.2.7 Market Penetration Rate
9.2.8 Pricing Strategy
9.2.9 Revenue Growth Rate
9.2.10 Customer Satisfaction Score

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Gojek
9.5.2 Grab
9.5.3 HappyFresh
9.5.4 TaniHub
9.5.5 Sayurbox
9.5.6 Alfamart
9.5.7 Indomaret
9.5.8 Bukalapak
9.5.9 Tokopedia
9.5.10 Shopee
9.5.11 Lazada
9.5.12 Kecap Manis
9.5.13 BliBli
9.5.14 Roti Bakar 88
9.5.15 Warung Pintar

10. Indonesia Online Grocery & Last-Mile Delivery Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government Procurement Policies
10.1.2 Budget Allocation for Grocery Services
10.1.3 Supplier Selection Criteria

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Delivery Infrastructure
10.2.2 Spending on Technology Solutions
10.2.3 Budget for Marketing and Promotions

10.3 Pain Point Analysis by End-User Category

10.3.1 Delivery Delays
10.3.2 Product Quality Concerns
10.3.3 Limited Payment Options

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Consumer Education Initiatives
10.4.3 Feedback Mechanisms

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI
10.5.2 Expansion into New Markets
10.5.3 Customer Feedback Utilization

11. Indonesia Online Grocery & Last-Mile Delivery Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Components

1.3 Value Proposition Canvas

1.4 Competitive Landscape Analysis


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Segmentation

2.4 Communication Channels


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

3.3 Logistics Partnerships

3.4 Distribution Network Optimization


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments Analysis

5.3 Product Development Opportunities


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service

6.3 Customer Engagement Strategies


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Customer-Centric Approaches


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Initiatives

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Innovations

9.2 Export Entry Strategy

9.2.1 Target Countries Identification
9.2.2 Compliance Roadmap Development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model Evaluation


11. Capital and Timeline Estimation

11.1 Capital Requirements Analysis

11.2 Timelines for Market Entry


12. Control vs Risk Trade-Off

12.1 Ownership Considerations

12.2 Partnerships Evaluation


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability Strategies


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports and market studies on online grocery trends in Indonesia
  • Review of government publications and statistics related to e-commerce and logistics
  • Examination of consumer behavior studies focusing on online grocery shopping preferences

Primary Research

  • Interviews with key stakeholders in the online grocery sector, including retailers and logistics providers
  • Surveys targeting consumers to understand purchasing habits and delivery preferences
  • Focus group discussions with industry experts to gather insights on market challenges and opportunities

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including sales data and consumer surveys
  • Triangulation of insights from primary interviews with secondary research findings
  • Sanity checks conducted through expert panel reviews to ensure data accuracy and relevance

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national e-commerce growth rates and grocery spending
  • Segmentation of the market by urban vs. rural consumer demographics and purchasing power
  • Incorporation of trends in last-mile delivery services and their impact on market growth

Bottom-up Modeling

  • Collection of sales data from leading online grocery platforms to establish baseline figures
  • Analysis of average order values and frequency of purchases to model revenue streams
  • Estimation of operational costs associated with last-mile delivery logistics

Forecasting & Scenario Analysis

  • Development of predictive models using historical growth data and market trends
  • Scenario analysis based on potential regulatory changes and economic conditions
  • Creation of multiple growth scenarios (baseline, optimistic, and pessimistic) through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Online Grocery Retailers150Business Owners, E-commerce Managers
Last-Mile Delivery Service Providers100Operations Managers, Logistics Coordinators
Consumer Insights on Grocery Shopping200Frequent Online Shoppers, General Consumers
Market Analysts and Industry Experts50Market Researchers, Industry Consultants
Regulatory Bodies and Policy Makers30Government Officials, Policy Advisors

Frequently Asked Questions

What is the current value of the Indonesia Online Grocery & Last-Mile Delivery Market?

The Indonesia Online Grocery & Last-Mile Delivery Market is valued at approximately USD 15 billion, reflecting significant growth driven by increased e-commerce adoption, urbanization, and changing consumer behaviors, particularly accelerated by the COVID-19 pandemic.

Which cities are the main hubs for online grocery shopping in Indonesia?

What regulations has the Indonesian government implemented for the online grocery sector?

What are the main types of products sold in the online grocery market?

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Thailand Online Grocery & Last-Mile Delivery Market

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