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Vietnam Online Grocery Market Outlook to 2026

  • Report
  • 77 Pages
  • March 2022
  • Region: Vietnam
  • Ken Research Private Limited
  • ID: 5635403

Market Driven by Increasing Smartphone Penetration, Changing Shopping Habits of Consumers and Regional Expansion of the Online Grocery Players

The report titled 'Vietnam Online Grocery Market Outlook to 2026F- Market Driven by Increasing Smartphone Penetration, Changing Shopping Habits of Consumers and Regional Expansion of the Online Grocery Players' provides a comprehensive analysis of Online Grocery Delivery Market in Vietnam. The report covers various aspects including the current online grocery delivery scenario in Vietnam, need & opportunities describing the target addressable market, addressable gap in the market and possible solutions.
The report also covers current supply and demand in the region, detailed working of Marketplace and Omnichannel operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives detailed explanation of competitive scenario including cross comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.

Market Overview


Gaps in offline grocery shopping such as inconvenience of commute, long payment queues and cost of impulse buying led to the introduction of the e-grocery delivery in Vietnam. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit CAGR between 2016 and 2021P. High internet penetration, rising working population and increasing number of single families has led to the growth of e-grocery services in Vietnam. Companies have expanded their product portfolios from food & beverages to household supplies, fresh food, fish & meat and other product categories.

Market Segmentation


By Product Category (Beauty & Health, Food & Beverages, Household Supplies and Fresh Food)


Beauty and Health mapped as most demanded product category. This was followed by Food & Beverages and Fresh Food. Shopee, Tiki and Lazada are major players in online grocery segment in 2021.

By Cities


Ho Chi Minh City and Hanoi are the major cities of Vietnam based population and urbanization. These cities are equipped in terms of setting up warehousing facility, transportation, procurement of grocery and carrying out other backend operations.
Working professionals, who are the major end users of online grocery delivery services, are concentrated in Ho Chi Minh City, Hanoi and Da Nang.

By Mode of Payment (Cash on Delivery and Online Payment)


The demand is still dominated by Cash on Delivery payment method followed by online payment

Cash is the most preferred mode of payment owing to following reasons:
  • Customers are skeptical for security of their financial details
  • They believe their bank details are not secure if they use online mode of payment. Majority of people in rural Vietnam are still not comfortable with Online Payments due to lack of knowledge and awareness.

By Preferred mode of Delivery


Customers in Vietnam prefer their orders to be fulfilled within 30 minutes - 2 hours. They are willing to pay extra charges for Express Delivery to get their orders on time.
Second most preferred mode of delivery is - Standard delivery in a Specific time period, this mode of delivery is generally preferred by working professional in Vietnam.

By Age Group (18-24, 25-37, 38-44, 45+):


About 60% of grocery orders were placed by customers belonging to 25-44 years age group. It has been witnessed that the demand for online grocery is rising among working professionals & married couples as they have less time to physically visit a store for grocery shopping. Moreover, smartphone users Aged 25-44 (targeting working professionals) who are willing to rely on online grocery delivery platforms for fulfilling their grocery needs are the key target population for online grocery delivery companies.
In addition to this, demand for online grocery has increased among the people living independently as they are increasingly outsourcing their chores, such as grocery shopping to reliable vendors online. Approximately 30% of the online grocery buyers are frequent shoppers and they place the order around 3-5 times a month.

Competitive Landscape


The industry is concentrated with presence of 6-8 players operating across marketplace and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Shopee, Tiki and Lazada. Companies with large product assortment, wide regional presence and express delivery are identified as clear leaders in the industry.

Future Outlook and Projection


The demand is expected to grow with a double digit CAGR on the basis of GMV between 2021P and 2026F. Companies are anticipated to focus on expanding tie ups with suppliers & grocery stores to fulfill customer orders. The demand is expected to be driven by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is expected in future as players with heavy financial backing and better brand value will acquire small players.

Key Segments Covered


By Product Category

  • Beauty & Health
  • Food & Beverages
  • Fresh Food
  • Household supplies
  • Others

By Mode of Payment

  • Cash onDelivery
  • Online Payments

By Age Group

  • 18-24 years
  • 25-34 years
  • 35-44 years
  • 45+ years

By Type of Business

  • B2B
  • B2C

By Mode of Delivery

  • In a specific time period
  • Express Delivery
  • Others

By Cities

  • Ho Chi MinhCity
  • Hanoi
  • Da Nang

Companies Covered

  • Shopee
  • Tiki
  • Lazada
  • Chopp
  • GrabMart
  • Co.opmart

Key Target Audience

  • Online Grocery Delivery Companies
  • Supermarkets & Hypermarkets
  • E-commerce Companies
  • Food Delivery Companies
  • Investors

Time Period Captured in the Report

  • Historical Period: 2016-2021P
  • Forecast Period: 2021P-2026F

Key Topics Covered in the Report

  • How is the Online Grocery Market positioned in Vietnam?
  • Comparison of the Brick-and-Mortar Grocery with the Online Grocery Platform
  • Target Addressable Audience for the market
  • Supply Ecosystem and Challenges
  • Demand Scenario, Target Customer and Factor Influencing Consumer Behavior
  • Cross Comparison of Operating Models (Marketplace and Omni-channel)
  • SWOT Analysis
  • Current Technologies Facilitating Online Grocery Delivery Industry
  • Upcoming Technologies in Online Grocery Delivery Industry
  • Investment and Funding in Online Grocery Delivery Companies in Vietnam
  • Competitive Landscape - Cross Comparison of Major Players
  • Company Profiles
  • Future Market Analysis and Trends
  • Analyst Recommendations
  • Research Methodology

Table of Contents

1. Executive Summary
1.1 How is Online Grocery Market positioned in Vietnam?
2. Need and Opportunity
2.1 Comparison of the Brick-and-Mortar Grocery with the Online
  • Grocery Platform
2.2 Target Addressable Audience for Online Grocery Market, 2021P
3. Supply Scenario
3.1 Market Entry Timeline of Major Players
3.2 Genesis & Overview of the Vietnam E-Grocery Market
3.3 Online Grocery Market Ecosystem in Vietnam
3.4 Growth drivers Governing the Online Grocery Market in Vietnam
3.5 Supply Side Challenges in Vietnam Online Grocery Market
4. Demand Scenario
4.1 Vietnam Online Grocery Market Size on the basis of GMV, 2016-2021P
4.2 Market Segmentation by mode of Delivery and Product Category, 2021P
4.3 Market Segmentation on the basis of mode of Payment, 2021P-2026F
4.4 Market Segmentation by Age Group and Type of Business, 2021P - 2026F
4.5 Market Segmentation on the basis of Major Cities in Vietnam, 2021P
4.6 Working professionals & Married Couples are Mapped as Target Customers
4.7 Factors affecting purchase decision of a consumer
4.8 Impact of Covid-19 on the Online Grocery Market in Vietnam
5. Operating Models across Vietnam Online Grocery Market
5.1 Operating Model: Marketplace Model for Online grocery Delivery
5.2 Process of On-Boarding a Partner Grocery Store
5.3 Role and Responsibility of Grocery delivery company and Partner stores
5.4 Operating Model: Omnichannel Model for Online grocery Delivery
5.5 Cross Comparison between Marketplace and Omnichannel Operating
  • Models
5.6 Logistics Management Strategies to manage delivery time and product
  • stock-outs
5.7 Issues faced in Logistics Management and their possible solutions
6. Industry Analysis
6.1 Where does Vietnam Stands in Comparison to Other Mature Markets
(India, UK & US)?
6.2 SWOT Analysis - Vietnam Online Grocery Market
6.3 Current Technologies Facilitating Online Grocery Delivery Industry
6.4 Upcoming Technologies Expected to thrive the industry
6.5 Features of Vietnam Grocery Delivery Applications
7. Competitive Landscape in Vietnam Online Grocery Market
7.1 Competition Scenario and Industry Unit Matrix
7.2 Cross Comparison of Major Online Grocery Delivery Players
7.3 Contribution of Major players in the Online Grocery Market, 2021P
7.4 Strengths & Weakness OF Different Online Grocery Players in Vietnam
7.5 Company Profiles (Overview, Product Category, Business Model, Business
  • Strategies, USP, Future Plans
8. Future Landscape of Vietnam Online Grocery Delivery Market
8.1 Vietnam Online Grocery Delivery Market Future Outlook to 2026F on
  • the basis of GMV
8.2 Market Segmentation on the basis of Mode of Delivery and Product
  • Category, 2021P & 2026F
8.3 Future Market Trends and Way Forward
9. Case Study & Analyst Recommendations
9.1 How Can Companies Reduce Delivery Time and Delivery Cost?
9.2 Key Adoption Points for Online Grocery Companies
9.3 How can Companies Promote themselves?
9.4 Why and How Subscription & Micro-Delivery Model can be Implemented?
9.5 How Blinkit disrupted the Online Grocery in India with 10-minute delivery
  • concept
9.6 Chopp Vietnam- Addressing the quality assurance issue
10. Appendix
10.1 Research Methodology
10.2 Disclaimer
10.3 Contact the Publisher

Executive Summary

The report titled “Vietnam Online Grocery Market Outlook to 2026 - Market Driven by Increasing Smartphone Penetration, Changing Shopping Habits of Consumers and Regional Expansion of the Online Grocery Players" provides a comprehensive analysis of Online Grocery Delivery Market in Vietnam. The report covers various aspects including the current online grocery delivery scenario in Vietnam, need & opportunities describing the target addressable market, addressable gap in the market and possible solutions.

The report also covers current supply and demand in the region, detailed working of Marketplace and Omnichannel operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives detailed explanation of competitive scenario including cross comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.


Companies Mentioned

A selection of companies mentioned in this report includes:

  • Shopee
  • Tiki
  • Lazada
  • Chopp
  • GrabMart
  • Co.opmart