Singapore online grocery market to grow by more than triple in 2020

Market value will jump from $130m to more than $500m.

There is no stopping the growth in the online grocery market in Singapore, as the new study by research firm IGD revealed. By 2020, the market is set to grow more than triple, from $130m to $500m.

According to IGD, online grocery has a 1.2% share of the Singaporean grocery market. The firm forecast online to take a 4% share of Singapore's grocery market by 2020, with a compound annual growth rate of 39%.

IGD Head of Asia Pacific Nick Miles 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.

"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," Miles said.

He furthered that retailers will be aiming to make delivery options as convenient as possible, whether through shorter timespan delivery slots or greater choice of click and collect points throughout the region.

"Our UK data shows that 80% of shoppers cite convenience as their number-one reason for shopping online, and we would anticipate Singaporean shoppers to have a very similar mindset when heading online for their groceries," he mentioned.

More so, online grocery retailers in the region are expected to encourage shopper loyalty through personalised offers and products, plus subscription models and delivery saver passes.

"On top of that, shoppers in the region are increasingly connected via mobile, so ensuring a seamless shopping experience no matter what device they are using will be critical. Coupled with an increased focus on using innovations such as voice-activated technology, virtual reality and robotics, we predict huge opportunities for those retailers and suppliers who really invest in making the online grocery channel work for them in Singapore," he concluded.

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