Online grocery to double market share in three years

KUALA LUMPUR: Tetra Pak, the world’s leading food processing and packaging solutions company, expects the food category in Malaysia to grow significantly and double its market share of the online channel within three years.

Tetra Pak Malaysia, Singapore and Philippines marketing director John Jose said this was because consumers are now looking for the most convenient channels to make purchases anytime and anywhere by using their smartphones.

“This will pave the way for the rapid rise of the online grocery shopping segment. With the mobile Internet users in Malaysia likely to increase by five per cent over the next few years to reach over 21 million users, the online segment is expected to grow in tandem with this trend,” said Jose in a statement in conjunction with the release of the 11th edition of the Tetra Pak Index recently.

The report highlighted four major trends for brands to consider in terms of product development which include convenience, sustainability, personalisation and performance.

Jose said the element of smart packaging which uses radio frequency identification or quick response codes to communicate with consumers would also provide positive consumer experience as it could share information on production materials, nutritional facts and current promotions.

Meanwhile, expert in shoppers' behaviour, Kantar Worldpanel Malaysia, Business Group Director, Cynthia Su said currently the fast-moving consumer goods (FMCG) online channel in Malaysia is dominated by baby and beauty products.

This is followed by the food category which is charting a notable uptrend with one out of every three online shoppers purchasing food items.

She also noted that Malaysia was among the fastest growing markets in online channel in the FMCG industry in the emerging and advanced countries in Asia. — Bernama