The Rise of Online Grocery Shopping in Vietnam

Introduction

In recent years, Vietnam has witnessed a remarkable transformation in its e-commerce landscape, particularly in the online grocery shopping sector. Platforms like Shopee, Grab, TikTok, and Be Group are in a fierce competition to capture the hearts of consumers, reshaping digital spending habits across the nation. This trend is not just a passing phase; it reflects a fundamental shift in how Vietnamese families approach daily shopping.

The Growth Surge

The online grocery shopping market in Vietnam has become not just a convenience but a habit for millions, especially in major urban centers. A report by Metric in 2024 reveals that the combined sales of Vietnam’s top five e-commerce platforms—Shopee, Lazada, TikTok Shop, Tiki, and Sendo—soared to an astonishing VNĐ318.9 trillion (approximately $12.17 billion) last year. This marks a staggering 37.36% increase from 2023, with product volume climbing over 50% to an impressive 3.42 million items. Among the various categories, groceries and food stood out with a remarkable growth rate of 76.3%, highlighting a dramatic shift in consumer behavior.

Consumer Behavior Shifts

Traditional bestsellers such as beauty products and home goods still hold a significant market share; however, the increasing reliance on grocery apps signifies a transformative change. Industry experts note that high purchase frequency is a key driver in this digital shopping revolution. Fresh foods, including vegetables and meats, are essential items that consumers prefer to buy weekly. This recurring purchasing pattern not only boosts sales but helps platforms establish lasting customer loyalty.

Convenience and Adaptability

Consumers are gravitating toward online shopping primarily due to convenience. Factors such as rapid delivery times and time savings are paramount as busy lifestyles dominate urban life. Moreover, the rise of imported goods and shifting consumption demands present both opportunities and challenges for local enterprises. To remain competitive, retailers must adapt, enhance product quality, and stay in sync with evolving consumer trends.

Infrastructure and Shopping Experience

The digital grocery shopping experience is heavily influenced by the underlying technology and infrastructure that app developers bring to the market. Customers often add fast-moving consumer goods (FMCG) alongside groceries in their carts, significantly increasing the average order value. Apps can also cross-sell various services, from e-payments to ride-booking, enhancing overall user experience.

For Gen Z and millennials, who are tech-savvy and value personalized convenience, these apps offer the seamless service they expect. Platforms like GrabMart aim to fulfill this demand by providing quick delivery, often within 15 to 30 minutes. GrabMart goes beyond just groceries, offering services ranging from family meals to beauty products and even pet care items.

Competition Among Major Players

GrabMart, highlighted as an express shopping assistant, has seen a 25% increase in average order value, signifying its evolution into a handy convenience store for many users. In parallel, Shopee has carved its niche with ShopeeFood and ShopeeMart, gaining leadership in the food delivery market with a 42.94% share. Shopee’s robust ecosystem, which integrates services like ShopeePay, enables seamless grocery delivery, appealing to contemporary shopping preferences.

Be Group, with its homegrown apps, is also making waves. The growth of BeFood has been impressive, with orders increasing by 390% and customer numbers up by 250% within just two years. While BeMart is still in its trial phase, the company’s local roots position it well to reclaim market share from foreign competitors.

Emerging Trends and Technologies

Innovative platforms like TikTok, MoMo, and ZaloPay are transforming into digital marketplaces, reflecting the ongoing evolution of online shopping. The integration of artificial intelligence and big data stands to revolutionize grocery shopping even further. These technologies can automate meal suggestions, bundle grocery items, and facilitate reorder scheduling, enhancing the shopping experience.

Moreover, establishing direct connections with farms and manufacturers can improve product quality while reducing intermediaries. Digital financial services are also set for explosive growth, enabling grocery installments, cashback opportunities, and bundled payments with other services like ride-hailing and food delivery.

Challenges Ahead

Despite its potential, the online grocery shopping sector faces significant hurdles. High operating costs, lingering consumer preferences for physical stores, and cutthroat competition driven by vouchers and free shipping present formidable challenges. Each player is strategizing; GrabMart bets on speed, ShopeeMart on its wide-scale integrated ecosystem, and Be Group on local market familiarity.

As the landscape continues to evolve, understanding these dynamics will be crucial for companies looking to thrive in this burgeoning market. The future of online grocery shopping in Vietnam is bright, but it will require continued innovation and adaptability to meet the needs of an ever-changing consumer base.