TikTok Shop Gains Rapid Market Share in Indonesia, While Shopee Still Holds Over Half

Ebrun Exclusive, June 20: According to the latest "2026 Indonesia Internet Penetration and User Behavior Survey" released by the Indonesian Internet Service Providers Association (APJII), Indonesia's internet user base has reached 235 million by 2026, with the overall penetration rate climbing to 81.72%. Supported by this massive user base, the battle among e-commerce platforms for user shopping choices is showing significant divergence.

The survey indicates that Shopee remains in the leading position with 47.5% of users choosing it, although this represents a drop of nearly 6 percentage points from last year's 53.2%. Lazada's decline is even more pronounced, falling from 9.1% the previous year to 6.2%.

In contrast, TikTok Shop's share of user choice has surged from 2.7% to 31.2%, achieving a leap of over 14 million new user choices in just one year and now approaching two-thirds of Shopee's market share.

A further analysis of TikTok Shop's user structure reveals that its growth is not reliant on specific niche segments but demonstrates a trend of comprehensive penetration across the board. Generational data shows that 34.7% of Gen Z users choose TikTok Shop, compared to 32.9% of Millennials, 30.6% of Gen X, and 29.3% of Boomers.

Notably, even among the older "Pre-Boomer" generation, the platform's usage rate reaches 34.8%, almost on par with Gen Z.

In terms of gender, 36.8% of female users choose TikTok Shop, over 8 percentage points higher than male users. Considering that women often play a central role in household consumption decisions, this gender advantage has potential implications for the platform to cultivate user repurchase habits and increase the average order value.

Another variable in the market comes from Tokopedia. The platform's share of user choice has slightly recovered from a previous 9.6% to 11.2%. However, this change is set against the backdrop of significant industry consolidation.

In late 2023, TikTok temporarily suspended its in-app e-commerce functionality in Indonesia to comply with local regulations. Subsequently, it acquired a 75% stake in Tokopedia for $1.5 billion and integrated its Indonesian e-commerce business into the Tokopedia system. The current increase in Tokopedia's share is directly linked to user traffic diversion and business integration from TikTok.

Meanwhile, the market space for other platforms is rapidly shrinking.

Lazada's user choice share has narrowed from 9.1% to 6.2%, Blibli's has dropped from 0.7% to 0.4%, and Facebook Marketplace's has declined from 0.2% to 0.1%, indicating a clear trend of marginalization for tail-end platforms.

The overall market structure is further concentrating towards the top players, but the gap within the leading camp is also rapidly narrowing. Although Shopee still maintains the broadest user reach, TikTok Shop is closing in across multiple dimensions, and the competitive distance between the two major platforms has significantly shortened.

Ebrun will continue to track and report on this development. If you wish to learn more information related to this article, please scan the QR code to follow the author's WeChat.