Industry performance amidst the COVID-19 pandemicBoth packaged and fresh food make up the biggest share of the monthly household expenditure in Indonesia. Food expenditure was expected to grow significantly during the COVID-19 pandemic. At the beginning of the pandemic, most grocery retailers in the country reported significant sales increases due to panic buying as the government imposed large-scale social restrictions. Demands for packaged and canned food products such as rice, noodles, and other processed food were especially high during this time as they last longer compared to other food products. Supermarkets and hypermarkets were the leading purchase channels to buy goods in bulk during the pandemic.
Even though offline retailers have been the key purchase channels for groceries in Indonesia, online retailers have been seeing increasing sales values in the last few years. A positive change in the frequency of grocery purchases online among Indonesian consumers during the COVID-19 pandemic indicated the growing popularity of this grocery shopping method. In a recent finding, Indonesians bought groceries online two or more times a week on average.