A Practical and Increasingly Common Trend: Online Grocery Shopping
Online grocery shopping is becoming a practical and popular way to buy food and household goods. From the comfort of their homes or via mobile apps, customers can browse, select, and purchase a wide range of products and daily essentials. This category often includes fresh vegetables, dairy products, canned goods, frozen foods, cleaning supplies, toiletries, and more. To shop online, customers visit an e-commerce website or use a retailer’s specific grocery shopping app, register, browse product categories, and add items to their virtual shopping carts.
Vietnam Online Grocery Market Growth
According to SPER Market Research, the Vietnam Online Grocery Market is projected to reach USD XX billion by 2032, with a CAGR of XX%.
Key drivers include the rising use of smartphones and increased internet penetration. With more Vietnamese consumers gaining internet access and becoming accustomed to online transactions, the convenience and accessibility of online grocery shopping are growing. Affordable mobile data plans and improved internet infrastructure support this trend, making it easier for customers to shop online. Additionally, Vietnam's urbanization has shifted lifestyles significantly as more people move to cities.
Challenges in the Market
Despite the growing popularity of e-commerce in Vietnam, some consumers are still hesitant to embrace online grocery shopping. Concerns about product quality, freshness, and safe delivery can deter them. The fragmented grocery supply chain, heavily reliant on small, independent farmers and distributors, poses another challenge. This can make it difficult for online retailers to consistently source high-quality and readily available products. Moreover, some Vietnamese customers, particularly in rural areas, might lack access to smartphones or reliable internet, which are essential for online grocery shopping.
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Impact of COVID-19
The COVID-19 pandemic led to triple-digit growth in Vietnam's online food market as more people opted for online shopping over visiting crowded areas. Businesses observed larger average order sizes, and the average delivery time increased from seven to ten days. To meet the surge in demand, companies expanded their delivery fleets by partnering with external delivery firms for last-mile logistics.
Key Urban Markets and Major Players
Ho Chi Minh City and Hanoi, Vietnam’s most populated and urbanized cities, have the necessary infrastructure for transportation, grocery shopping, storage, and other back-end operations. Major players in the market include Annam Gourmet, Bach Hoa Xanh, Chopp, Co.opmart, Farmer's Market, GrabMart, Grocery eCommerce Solutions, Lazada, Organica, Shopee, Tiki, and WinMart.
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Vietnam Online Grocery Market Outlook
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