Online grocery market to more than triple in Singapore by 2020: IGD forecast

By Gary Scattergood contact

- Last updated on GMT

Online grocery market to more than triple in Singapore by 2020: IGD forecast

Related tags: Supermarket

Singapore’s online grocery market is set to triple in growth over the next three years, from SG$130m (US$91m) to SG$0.5bn (US$0.35bn) by 2020, according to forecasts unveiled today by international grocery research organisation IGD. 

At the end of 2016, IGD valued online grocery to have a 1.2% share of the Singaporean grocery market. IGD is further forecasting online to take a 4% share of Singapore’s grocery market by 2020, with a compound annual growth rate of 39%.

Revealing the figures at the IGD RedMart Trade Briefing, held in Singapore, Nick Miles, IGD’s Head of Asia-Pacific, said: “Singapore is hailing a new era of digital grocery retailing, driven by the entry of RedMart in 2011, Giant and Sheng Siong launching online grocery in 2013 and plenty of smaller start-up businesses also looking to grab a slice of the action.

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“Shopper habits are changing rapidly in South East Asia and in a compact city such as Singapore, with its relatively affluent population, big expat community and high penetration of internet and smartphone usage, there are huge opportunities for online grocery to meet these evolving needs. To make the most of this opportunity, retailers and suppliers must work together to ensure they really understand online shoppers and can tailor experiences and products to suit their personal preferences."

He added retailers were looking to improve the overall online experience, by getting the basics of search functions, favourites, images and information right for shoppers.

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“At the same time, they’ll be aiming to make delivery options as convenient as possible, whether that’s through shorter timespan delivery slots or greater choice of click and collect points throughout the region,”​ he added.

Miles said he expects online grocery retailers in the region to encourage shopper loyalty through personalised offers and products, plus subscription models and delivery saver passes.

“We predict huge opportunities for those retailers and suppliers who really invest in making the online grocery channel work for them in Singapore,”​he added.

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