Vietnam online grocery market share, size, growth rate and

Insight:

The online grocery delivery service in Vietnam has gained traction with consumers as it allows customers to avoid the hassle of crowds, payment and parking queues and provides convenience as it is not no need to be home to pick up the order.

Shortcomings in offline grocery shopping, such as travel inconveniences, long payment queues, and the cost of impulse shopping, have led to the introduction of online grocery delivery in Vietnam. The population between the ages of 25 and 44 is considered an influential customer base for online grocery shopping.

High internet penetration and increasing labor force have driven the growth of online grocery services in Vietnam.

Market size:

The online grocery delivery market in Vietnam is positioned to be in a growth phase with a CAGR of around % during the period 2016-2021P. Online grocery penetration in 2021P was around %.

The Vietnamese online grocery market has been segmented on the basis of product category, delivery method, preferred payment method, cities and age group.

The Beauty and Health segment contributes the most to GMV, followed by the Food and Beverage category.

Service providers in Vietnam are constantly upgrading to adapt to customer needs. Companies have focused on developing infrastructure to control last-mile delivery and offer express delivery to customers within 120 minutes.

Express delivery is the most preferred delivery type in Vietnam for online grocery delivery.

Vietnam online grocery market segmentation

By product category

The Beauty and Health segment contributes the most to GMV, followed by the Food and Beverage category. This is due to the fact that masks and sanitizers fall into this category and due to the Covid-19 pandemic, a significant increase can be seen in the beauty and health segment from 2021P. Fresh foods (fruits, vegetables, dairy products and eggs) are recognized as the emerging category.

By cities

Ho Chi Minh City and Hanoi are the main cities of population and urbanization based in Vietnam. These cities are equipped in terms of setting up facilities for warehousing, transportation, grocery supply, and other backend operations.

Working professionals, who are the main end-users of online grocery delivery services, are concentrated in Ho Chi Minh City, Hanoi and Da Nang.

By payment method

Demand is dominated by cash on delivery. This was followed by online payment methods. Even though cash is still an integral part of the payment culture in Vietnam, the growing penetration of mobile internet has led to an increase in e-commerce platforms in recent years, an opportunity for digital payment providers.

By delivery method

Customers in Vietnam prefer their orders to be fulfilled within 30 minutes to 2 hours. They are willing to pay extra for express delivery in order to receive their orders on time.

The second most preferred delivery method is – Standard delivery within a specific time period, this delivery method is generally preferred by professionals working in Vietnam.

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By business type

B2B activity in the online grocery market sits at ~% and is expected to grow to ~% by 2026F, while the B2C segment will still be a dominant type with an expected percentage of ~% by 2026F 2026F.

By age group

The current trend shows that the population between 25-37 and 38-44 years old dominates as they are the main target population for the online grocery market.

The availability of smartphones and the internet makes them ideal users for the market.

However, by the year 2026F, the percentage of online shoppers between the ages of 38 and 44 is expected to increase as the age group would be well versed in online grocery shopping by then.

The population of smartphone users aged 25-44 was ~Mn in 2021P.

Those smartphone users (tech-savvy population) who are willing to rely on online grocery delivery platforms to meet their grocery needs are the target population of online grocery delivery companies.

Operating models

The grocery delivery marketplace model refers to a business providing an e-commerce platform that connects customers and grocery stores for the purpose of buying and selling groceries respectively. Shopee, Lazada, Tiki followed the market model in Vietnam. The omnichannel model allows customers to access groceries from an offline and online platform. Saigon coopmart, Big C, Lotte Mart followed the omnichannel model in Vietnam.

Competitive landscape

The competition in the industry is concentrated with the presence of more than 8-9 industry players. Some of the major players include Shopee, Tiki, Lazada, GrabMart, Chopp, Co.opmart.

Companies are increasingly changing their business strategies to improve the user experience. Companies have battled against each other to acquire and retain customers, expand their geographic presence, broaden their product offerings, and improve unit economics to increase margins. Companies with a wide assortment of products, broad regional presence and express delivery are identified as undisputed leaders in the industry.

What is the future of online grocery delivery market in Vietnam?

Vietnam Online Grocery Delivery Market GMV is expected to reach ~USD Million by the end of 2026F.

Impact of Covid-19: As a result of the global COVID-19 pandemic, there has been a drastic increase in average order size and delivery times in the industry. Businesses have partnered with third-party delivery companies to address last-mile logistics challenges.

Key Segments Covered:

By product category
Beauty and health
Food and drinks
fresh food
Household items
Others
By payment method
Cash on delivery
Online payments
By age group
18-24 years old
25-34 years old
35-44 years old
45+ years old

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By business type
B2B
B2C
By delivery method
In a specific period of time
Express delivery
Others
By cities
Ho Chi Minh City
Hanoi
Da Nang
Companies covered

Shop
Tiki
Lazada
Chop
grab-mart
opmart
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Key target audience

Online grocery delivery companies
Supermarkets & Hypermarkets
E-commerce companies
food delivery companies
Investors
Period entered in the report: –

Historical period: 2016-2021P
Forecast period: 2021P-2026F
Main topics covered in the report:-

How is the online grocery market positioned in Vietnam?
Comparison of physical grocery store with online grocery platform
Target addressable audience for the market
Supply ecosystem and challenges
Demand scenario, target customer and factor influencing consumer behavior
Cross comparison of operating models (Marketplace and Omnichannel)
SWOT analysis
Current Technologies Facilitating the Online Grocery Delivery Industry
Upcoming Technologies in the Online Grocery Delivery Industry
Investing and financing in online grocery delivery companies in Vietnam
Competitive Landscape – Key Players Cross Comparison
Company Profiles
Market analysis and future trends
Analyst Recommendations
Research Methodology
For more information on the research report, refer to the link below:-

https://www.kenresearch.com/consumer-products-and-retail/wholesale-and-retail/vietnam-online-grocery-market-outlook-to-2026/524047-95.html

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