The rate of growth in food and drink e-commerce retail current value sales slowed significantly during 2021 but remained in double digits. While grocery retailing outlets were deemed essential and, therefore, able to stay open even during the lockdown period of March-May 2020, many consumers turned to purchasing food and drink online because of concerns about exposure to the COVID-19 virus in crowded physical stores.
Amid fierce competition among courier companies, the delivery of online food and orders is becoming faster. It is also increasingly possible to order chilled and frozen packaged food online – at least in country’s largest cities.
With the demand for online food and drink shopping rising significantly since the onset of the pandemic, many grocery retailers and packaged food manufacturers have partnered with third party marketplaces Lazada and Shopee to sell products online. In 2020, Lazada launched a new feature, LazAroi, collaborating with more than 2,000 food and drink online shops and categorising products by food type, such as Crunchy Munchy, Sweet Escape, Spice It Up and Thirsty Day.
The retail current value sales of food and drink e-commerce will continue to exhibit double-digit growth throughout the forecast period. During the forecast period as a whole, retail current value sales will almost double.
Demand for food and drink e-commerce will also be supported by the fact that the work from home trend is set to outlast the pandemic. Hybrid working (where employees regularly work one or more days a week at home) will become increasingly normal for office workers.
Third-party marketplaces like Lazada and Shopee will continue to play an important role in the development of food and drink e-commerce during the forecast period by continuing to offer deals and promotions on certain days of the month, such as 9 September and 10 October. Discounts on products and free delivery on these occasions will help to stimulate consumer interest and spur growth in food and drink e-commerce.
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Internet retailing sales of food and drink (all packaged and fresh food and drink (hot drinks, soft drinks and alcoholic drinks).See All of Our Definitions
This report originates from Passport, our Food and Drink Internet Retailing research and analysis database.
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