A shift in the retailing ecosystem and consumer preferencesThe COVID-19 pandemic has reshaped the food retail industry in Indonesia by introducing a new environment that enables digital innovations and operational changes within the industry. Unprecedented demand for online shopping and food delivery due to social restrictions during the pandemic has had a lasting impact on the structure of the retail ecosystem. Even though offline retailers remain the key purchase channels for groceries in Indonesia, online retailers have seen an increasing revenue share in the Indonesian food market in the last few years. A positive development in the sales value of the e-grocery market in the country indicates a growing popularity of this grocery shopping method. Moreover, the e-grocery market was expected to increase steadily and reach approximately 5.6 trillion U.S. dollars by 2026.
Another significant shift that is worth noting in the food retail industry is the shift in consumer attitudes towards food. Indonesian consumers are becoming more environmentally responsible and health conscious. This has been shaping the current food trends among consumers in Indonesia, which, in turn, influences their purchase preferences. A recent study revealed current consumers’ top criteria for purchasing food in Indonesia included fresh and natural ingredients.