The Indonesia Online Grocery market is undergoing substantial growth with the top five players- Shopee, Alfamart, Klik Indomaret, GoMart, and GrabMart holding approx. 80% of the market. The convenience of online shopping has become increasingly appealing as the country’s online retail penetration reaches 3.39% in 2023 compared to 2.57% in 2022. 

As competition intensifies, market leaders must optimize scalability, last-mile logistics to sustain growth while achieving profitability. This article explores how e-commerce giants and retailers using logistics innovation and internet penetration to reshape Indonesia’s online grocery market. 

How Modern Technology is Shaping the Market’s Working Flow? 

• E-commerce platforms are aggressively expanding their grocery verticals, leveraging AI-powered recommendations and digital payment ecosystems. Shopee dominates with a 22.3% market share, generating USD 890 million based on GMV in 2023. With AI-driven personalization, it has increased basket sizes to USD 26 per order, surpassing the industry benchmark of USD 24.5.  
• Additionally, Alfamart, holding a 17.7% market share and generating USD 707 million GMV, has converted its 5,000+ store network into micro-fulfilment centres, enabling rapid in-store pickups and home deliveries.  

• Tokopedia processes 1.97 billion visits annually, integrating Gojek’s hyperlocal network for instant and scheduled grocery deliveries, while Lazada is expected to enhance cold-chain logistics, improving fresh grocery distribution. 
• With a grocery spend per value of USD 21, Alfamart serves a broad mass-market consumer base. Klik Indomaret, controlling 16.7% market share based on GMV, has transitioned into a hybrid marketplace, expanding inventory through third-party sellers while reducing warehousing costs. 

Rising Internet Penetration Fuels Growth 

• With over 223 million internet users, Indonesia has one of the highest internet penetration rates in Southeast Asia. According to the latest survey conducted by the Indonesian Internet Service Providers Association (APJII), internet penetration in Indonesia increased from 78.1% in 2023 to 79.5% in 2024. 
• Over 190 million Indonesians use smartphones in 2023, making mobile apps the primary channel for online grocery transactions. Further, platforms like Shopee, Tokopedia, and GrabMart have optimized mobile interfaces to enhance user experiences and streamline purchasing. Moreover, still, 4 million convenience retailers, supermarkets, hypermarkets, and traditional grocers operate in Indonesia, generating sales worth USD 117 billion in 2023.   
• The Indonesian online payment platforms recorded over 60 million active users in 2020, with players like Go-Pay, OVO, and Dana leading in digital transactions. The interplay between rising internet connectivity and digital payment adoption is set to further transform Indonesia’s online grocery landscape. The adoption of Buy Now, Pay Later (BNPL) models is further boosting grocery spending, particularly among younger consumers.  

What does the Future Hold? 

The battle for dominance in Indonesia’s online grocery market will be defined by logistics optimization, fintech adoption, and Internet penetration. Shopee and Tokopedia may acquire niche players like Sayurbox or TaniHub, securing direct farm-to-consumer supply chains. GrabMart and GoMart could integrate grocery and meal deliveries, leveraging cross-category fulfilment to improve unit economics. By 2030, success in Indonesia’s online grocery market will hinge on scale, cost efficiency, and digital integration.