Food and Drink E-Commerce in Japan

2020 IMPACT

Food delivery service thrive as consumers remain at home

Food and drink e-commerce enjoyed strong and steady growth over the review period as growing numbers of consumers were attracted to the convenience of shopping online. However, the outbreak of COVID-19 served as a big push with consumers instructed by the government to limit their movements outside the home, including taking fewer trips to grocery retailers.

Oisix responds well to COVID-19 crisis with new services and support for the local community

Oisix La Daichi, which has a home delivery business centred on meal kits, saw its membership increase sharply during COVID-19, with its Oisix brand recording double-digit growth in 2020. In addition, not only did the company’s user base grow during the COVID-19 crisis, but the spend per user also shot up with home seclusion encouraging consumers to order more food and drink.

Food-e launches fine dining food delivery service as consumers look for indulgence

While staple foods and everyday food and drink items were a key driver of growth in food and drink e-commerce in 2020, there was also an increased demand for indulgent products. Stuck at home and unable to socialise with friends and family or eat out, some people sought out tasty treats such as sweets and cakes, as well as gourmet food items and dishes.

RECOVERY AND OPPORTUNITIES

Food and drink e-commerce expected to build on strong performance seen in 2020

The dynamism created by COVID-19 is expected to carry over into the forecast period, with more consumers now familiar with the convenience and other benefits of shopping for food and drink online. With major players such as AEON having invested significantly in developing online grocery shopping this should also ensure logistics are well developed to cope with the increasing demand moving forward.

Competitive landscape expanding and more players expected to enter the market over the forecast period

Food and drink e-commerce is expanding beyond the leading supermarkets, with pure online players now also offering groceries online, and more expected to follow suit over the forecast period. The most notable player to do so in recent times is Amazon, which launched its Prime Now service.

Convenience stores offer potential as pick-up and drop-off points for deliveries

Cooperation among different industries is also expected to develop over the forecast period as players look to stand out from the competition. For example, in June 2020, COOKPAD, which runs a cooking recipe site, announced a partnership with Lawson to start a service called COOKPAD Mart.