Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept and close

Description

Description

“The smallest and quickest-growing aspect of the grocery market, online grocery is a sector that has seen a vast number of innovations in the past year as it strives to evolve to cater not just for big-basket supermarket-style shops but also for smaller top-up-based shops.”  

- Nick Carroll, Senior Retail Analyst

  • Taking time to talk: finding a place for voice in the online grocery market
  • Food for tonight: can online grocery compete with foodservice takeaway?
  • Online grocery shopping without the retailer: could a direct-to-consumer model work in the grocery sector?

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Online grocery continues to be the fastest-growing segment of the grocery sector…
              • Figure 1: Total online grocery market size (including VAT), 2012-22
            • …but is equally the smallest
              • Figure 2: Online grocery sales as a % of all grocery retail sales, 2012-22
            • Online grocery sales peak in December, but take their greatest share in November
              • Figure 3: Average weekly retail sales of all online grocery retailers, January 2015-January 2018
            • Companies and brands
              • Tesco the dominant player
                • Figure 4: Leading online grocery retailers’ estimated market shares (excluding VAT), 2017
              • The Amazon brand is strong
                • Figure 5: Attitudes towards and usage of selected brands, September 2017
              • The consumer
                • Just under half do some online grocery shopping
                  • Figure 6: Online grocery usage, December 2017
                • Young families a key audience
                  • Figure 7: Online grocery usage, by parental status, December 2017
                • Convenience an obvious driver
                  • Figure 8: Why users shop online for groceries, December 2017
                • Bulky items most popular
                  • Figure 9: Types of products typically purchased when shopping online for groceries, December 2017
                • Tesco the most popular retailer
                  • Figure 10: Online grocery retailers used in the past 12 months, December 2017
                • Voice commerce could be limited by lack of visual representation
                  • Figure 11: Attitudes towards online grocery shopping, December 2017
                • What we think
                • Issues and Insights

                  • Taking time to talk: finding a place for voice in the online grocery market
                    • The facts
                      • The implications
                        • Food for tonight: can online grocery compete with foodservice takeaway?
                          • The facts
                            • The implications
                              • Online grocery shopping without the retailer: could a direct-to-consumer model work in the grocery sector?
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Online grocery market grows by 13.5% in 2017
                                      • A small but significant part of the make-up of the grocery sector
                                        • Store-based players dominate the market
                                          • Online grocery sales peak in December, but take their greatest share in November
                                            • Changing household dynamics could force the industry to switch strategies
                                            • Market Drivers

                                              • Online growth slows down over 2017
                                                • Figure 12: Annual % change in the retail sales of food, by all food sales and online grocery sales, January 2015-January 2018
                                              • Online takes its greatest share in November…
                                                • Figure 13: Online grocery stores as a % of all food stores retail sales, January 2015-January 2018
                                              • …but higher average weekly spending is seen in December
                                                • Figure 14: Average weekly retail sales of all online grocery retailers, January 2015-January 2018
                                              • Prices rise over 2017
                                                • Figure 15: Annual % change in the price of food and non-alcoholic beverages and alcoholic beverages and tobacco prices, January 2016-January 2018
                                              • Prices rise across all food categories
                                                • Figure 16: Annual % change in the price of core food categories, January 2017-January 2018
                                              • Smartphones and tablets used to access internet
                                                • Figure 17: Devices used to access the internet in the last three months, June 2014-September 2017
                                              • Growing 25-34 age group will boost sales…
                                                • Figure 18: Population projections, by age, 2012-22
                                              • …but smaller household sizes will prove to be a negative influence
                                                • Figure 19: UK households, by size, 2012-22
                                            • Market Size and Forecast

                                              • Online grocery continues to grow in double digits
                                                • Figure 20: Total online grocery market size (including VAT), 2012-22
                                                • Figure 21: Total online grocery market size (including VAT), at current and constant prices, 2012-22
                                              • A growing but small sector
                                                  • Figure 22: Online grocery sales as a % of all grocery retail sales, 2012-22
                                                • Store-based players still dominate the market
                                                  • Figure 23: Share of total online grocery market, by type of online grocery operation, 2012-22
                                                • Three players dominate the store-based online grocery market
                                                  • Figure 24: Online grocery sales by store-based grocery retailers (Including VAT), 2012-22
                                                  • Figure 25: Online grocery sales by store-based grocery retailers (including VAT), at current and constant prices, 2012-22
                                                • Ocado the driver for the online-only segment, but smaller players are growing quickly
                                                  • Figure 26: Online grocery sales by online-only retailers (including VAT), 2012-22
                                                  • Figure 27: Online grocery sales by online-only retailers (including VAT), at current and constant prices, 2012-22
                                                • Forecast methodology
                                                • The Consumer – What You Need to Know

                                                  • Just under half do some online grocery shopping
                                                    • Young families a key audience
                                                      • Convenience an obvious driver
                                                        • Bulky items most popular
                                                          • Tesco the most popular retailer
                                                            • Satisfaction levels generally high but work could be done on recommendations
                                                              • Voice commerce could be limited by lack of visual representation
                                                              • Online Grocery Use and Delivery Pass Ownership

                                                                • Just under half do some online grocery shopping
                                                                  • Figure 28: Online grocery usage, December 2017
                                                                • Trends in online grocery use
                                                                  • Figure 29: Online grocery usage, 2014-17
                                                                • Nearly a quarter have a delivery pass
                                                                  • Figure 30: Delivery pass ownership levels, December 2017
                                                              • Demographics of Online Grocery Use

                                                                  • 25-34s most likely to shop online for groceries
                                                                    • Figure 31: Online grocery usage, by age, December 2017
                                                                  • Gender plays a role in use amongst younger shoppers
                                                                    • Figure 32: Use and interest in online grocery of non-users, by age and gender, December 2017
                                                                  • Online peaks amongst those with young families
                                                                    • Figure 33: Online grocery usage, by parental status, December 2017
                                                                  • Price premium means usage peaks amongst more affluent consumers
                                                                    • Figure 34: Online grocery usage, by socio-economic group, December 2017
                                                                  • Online grocery usage peaks in the capital
                                                                    • Figure 35: Online grocery usage, by type of location lived in and area lived in, December 2017
                                                                • How They Shop Online for Groceries

                                                                  • Desktop/laptops the most used device for online grocery shopping
                                                                      • Figure 36: Devices used to purchase groceries online, December 2017
                                                                    • Younger consumers more likely to shop via smartphone
                                                                      • Figure 37: Devices used to purchase groceries online, by age, December 2017
                                                                    • 25-34s most likely to use multiple devices
                                                                      • Figure 38: Repertoire of devices used to purchase groceries online, by age, December 2017
                                                                  • Why They Shop Online for Groceries

                                                                    • Convenience a clear driver for online grocery
                                                                      • Figure 39: Why users shop online for groceries, December 2017
                                                                    • Stocking up on bulky items more common with older online grocery shoppers
                                                                      • Figure 40: Leading reasons why users shop online for groceries, by age, December 2017
                                                                    • Higher socio-economic groups more convenience-focused
                                                                      • Figure 41: Reasons why users shop online for groceries, by socio-economic group, December 2017
                                                                    • Store experience an issue for those who do the majority of their shopping online
                                                                      • Figure 42: Reasons why users shop online for groceries, by how much grocery shopping is done online, December 2017
                                                                  • Types of Groceries Purchased Online

                                                                    • Bulky goods most popular
                                                                      • Figure 43: Types of products typically purchased when shopping online for groceries, December 2017
                                                                    • 25-44s more likely to buy fresh
                                                                      • Figure 44: Types of products typically purchased when shopping online for groceries, by age, December 2017
                                                                    • 16-24s more likely to buy from a single category
                                                                      • Figure 45: Repertoire of products typically purchased when shopping online for groceries, December 2017
                                                                  • Online Grocery Retailers Used

                                                                    • Tesco the dominant player online
                                                                      • Figure 46: Online grocery retailers used in the past 12 months, December 2017
                                                                    • Recipe boxes are targeting younger, more affluent consumers
                                                                      • Figure 47: Online grocery retailers used in the past 12 months, by age and socio-economic group, December 2017
                                                                    • Over half used two or more online grocery retailers in the past year
                                                                        • Figure 48: Repertoire of online grocery retailers used in the past 12 months, December 2017
                                                                        • Figure 49: Online grocery retailers used in the past 12 months, December 2017
                                                                      • Strong crossover between store and online
                                                                        • Figure 50: Retailers shopped with in-store in the last 12 months, December 2017
                                                                        • Figure 51: Online grocery retailers used in the past 12 months, December 2017
                                                                    • Satisfaction with the Buying Process Online

                                                                      • General high levels of satisfaction from online grocery shoppers
                                                                        • Figure 52: Satisfaction with factors relating to online grocery process online, December 2017
                                                                      • Key Driver Analysis: Recommendations an area to monitor
                                                                          • Figure 53: Key drivers of overall satisfaction with online grocery retailers, December 2017
                                                                          • Figure 54: Overall satisfaction with online grocery retailers – key driver output, December 2017
                                                                        • Shopping aisles or mission-based categorisation?
                                                                            • Figure 55: Attitudes towards online grocery websites, December 2017
                                                                          • Key Driver Analysis – Methodology
                                                                          • Attitudes towards Voice and Same-day Delivery

                                                                            • Voice commerce has potential but first wave of devices don’t lend themselves to grocery ordering
                                                                                • Figure 56: Attitudes towards online grocery shopping, December 2017
                                                                              • Voice commerce has the potential to tap into new areas
                                                                                • Figure 57: Agreement with the statement “The ability to order groceries through voice command whilst on the move appeals to me”, by working status, December 2017
                                                                              • The cost of quick delivery services is off-putting for some
                                                                                • Figure 58: Attitudes towards same-day delivery services, December 2017
                                                                              • Younger consumers more put off by quick delivery charges
                                                                                • Figure 59: Agreement with attitudes towards same-day delivery services, by age, December 2017
                                                                            • Leading Retailers – What You Need to Know

                                                                              • Tesco the dominant player…
                                                                                • …but others are growing quickly
                                                                                  • Voice, recipe boxes and foodservice all areas of innovation in 2017
                                                                                    • Amazon scores best on brand metrics
                                                                                    • Leading Retailers and Market Shares

                                                                                      • Market shares: Tesco accounts for a third of the market
                                                                                        • Figure 60: Leading online grocery retailers’ estimated market shares (excluding VAT), 2017
                                                                                        • Figure 61: Leading online grocery retailers’ estimated market shares (excluding VAT), 2015-17
                                                                                      • Leading players: revenues
                                                                                          • Figure 62: Leading online grocery retailers’ net internet revenues, 2015-17
                                                                                        • Leading players: revenue breakdown
                                                                                          • Figure 63: Leading online grocery retailers’ estimated total online revenues, by grocery and non-grocery, 2015-17
                                                                                        • Smaller players
                                                                                          • Figure 64: Smaller online players, estimated market shares, 2015-17
                                                                                          • Figure 65: Smaller online grocery players’ turnover, 2015-17
                                                                                      • Competitive Strategies – Key Metrics

                                                                                        • Coverage and fulfilment
                                                                                          • Figure 66: Selected leading online grocers’ coverage and fulfilment centres, 2017
                                                                                        • Home delivery metrics
                                                                                          • Figure 67: Selected leading online grocers’ delivery metrics, March 2018
                                                                                        • Delivery passes
                                                                                          • Figure 68: Selected leading online grocers’ delivery pass details, March 2018
                                                                                        • Click-and-collect
                                                                                          • Figure 69: Selected leading online grocers’ click-and-collect details, March 2017
                                                                                      • Advertising and Marketing Activity

                                                                                        • Total sector advertising spend down 26.9% year on year in 2017
                                                                                          • Figure 70: UK online supermarket/grocer/food total recorded above-the-line, online display and direct mail advertising expenditure, 2013-17
                                                                                        • Leading online supermarket/grocer/food retailers advertising spenders
                                                                                          • Figure 71: Leading UK online supermarket/grocer/food retailers’ total recorded above-the-line, online display and direct mail advertising expenditure, 2013-17
                                                                                        • Door drops attract the biggest percentage of total sector advertising spend
                                                                                          • Figure 72: UK online supermarket/grocer/food total recorded above-the-line, online display and direct mail advertising expenditure, by media type, 2017
                                                                                        • Nielsen Ad Intel coverage
                                                                                        • Innovations and Launch Activity

                                                                                          • Voice-enabled shopping
                                                                                            • Ocado is the first to join Alexa’s party…
                                                                                              • Figure 73: Ocado/Amazon Alexa marketing image
                                                                                            • … swiftly followed by Gousto and Morrisons
                                                                                              • Figure 74: Morrisons/Amazon Alexa marketing image, December 2017
                                                                                            • Tesco launches on Google Home
                                                                                              • New delivery methods
                                                                                                • Ocado trials self-driving grocery truck
                                                                                                  • Figure 75: Oxbotica autonomous van, June 2017
                                                                                                • Grocery delivery service for tourists
                                                                                                  • Carrefour lets customers deliver groceries
                                                                                                    • Sainsbury’s trials 30-minute click-and-collect
                                                                                                      • Bringmeister launches in-home delivery…
                                                                                                        • … as does Amazon
                                                                                                          • Recipe boxes and foodservice
                                                                                                            • Sainsbury’s trials pizza delivery service
                                                                                                              • HelloFresh
                                                                                                                • … launches in Sainsbury’s stores…
                                                                                                                  • …opens pop-up store in London…
                                                                                                                    • …launches Christmas dinner recipes
                                                                                                                      • Figure 76: HelloFresh Christmas dinner recipe box, November 2017
                                                                                                                    • Waitrose launches recipe box subscription
                                                                                                                      • Same-day gathers pace
                                                                                                                        • Sainsbury’s expands one-hour delivery
                                                                                                                          • Convibo becomes Home Run
                                                                                                                            • Amazon expands its food offering in Europe
                                                                                                                              • Aldi to begin offering online groceries in the US
                                                                                                                                • Co-op trials online deliveries with Deliveroo
                                                                                                                                  • Marks & Spencer launches online groceries with one-hour delivery trial…
                                                                                                                                    • …and joins Dropit to allow for home delivery of goods from stores
                                                                                                                                      • Robinsons trials home delivery service
                                                                                                                                      • Brand Research

                                                                                                                                          • What you need to know
                                                                                                                                            • Brand map
                                                                                                                                              • Figure 77: Attitudes towards and usage of selected brands, September 2017
                                                                                                                                            • Key brand metrics
                                                                                                                                              • Figure 78: Key metrics for selected brands, September 2017
                                                                                                                                            • Brand attitudes: Online-only retailers perceived as more innovative
                                                                                                                                              • Figure 79: Attitudes, by brand, September 2017
                                                                                                                                            • Brand personality: The big four supermarkets perceived as the most accessible
                                                                                                                                              • Figure 80: Brand personality – macro image, September 2017
                                                                                                                                            • Amazon considered trendsetting and cutting edge
                                                                                                                                              • Figure 81: Brand personality – micro image, September 2017
                                                                                                                                            • Brand analysis
                                                                                                                                              • Amazon innovative and cutting edge
                                                                                                                                                • Figure 82: User profile of Amazon, September 2017
                                                                                                                                              • Tesco trustworthy and accessible
                                                                                                                                                • Figure 83: User profile of Tesco, September 2017
                                                                                                                                              • Sainsbury’s reliable, good customer service but perceived as fairly expensive
                                                                                                                                                • Figure 84: User profile of Sainsbury’s, September 2017
                                                                                                                                              • Morrisons lacks differentiation and uniqueness but value for money
                                                                                                                                                • Figure 85: User profile of Morrisons, September 2017
                                                                                                                                              • Asda trusty, reliable but lacks vigour
                                                                                                                                                • Figure 86: User profile of Asda, September 2017
                                                                                                                                              • Waitrose exclusiveness and worth paying more for
                                                                                                                                                • Figure 87: User profile of Waitrose, September 2017
                                                                                                                                              • Iceland good value, but largely unappealing and disappointing
                                                                                                                                                • Figure 88: User profile of Iceland, September 2017
                                                                                                                                              • Ocado innovative and stylish, but suffers low brand awareness
                                                                                                                                                • Figure 89: User profile of Ocado, September 2017
                                                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                              • Data sources
                                                                                                                                                • Financial definitions
                                                                                                                                                  • VAT
                                                                                                                                                    • Abbreviations
                                                                                                                                                      • Consumer research methodology
                                                                                                                                                      • Appendix – Market Size and Forecast

                                                                                                                                                        • Forecast methodology

                                                                                                                                                        About the report

                                                                                                                                                        This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                        • The Consumer

                                                                                                                                                          What They Want. Why They Want It.

                                                                                                                                                        • The Competitors

                                                                                                                                                          Who’s Winning. How To Stay Ahead.

                                                                                                                                                        • The Market

                                                                                                                                                          Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                        • The Innovations

                                                                                                                                                          New Ideas. New Products. New Potential.

                                                                                                                                                        • The Opportunities

                                                                                                                                                          Where The White Space Is. How To Make It Yours.

                                                                                                                                                        • The Trends

                                                                                                                                                          What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                        Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                                        Trusted by companies. Big and small.

                                                                                                                                                        • bell
                                                                                                                                                        • boots
                                                                                                                                                        • google
                                                                                                                                                        • samsung
                                                                                                                                                        • allianz
                                                                                                                                                        • kelloggs
                                                                                                                                                        • walgreens
                                                                                                                                                        • redbull
                                                                                                                                                        • unilever
                                                                                                                                                        • Harvard
                                                                                                                                                        • pinterest
                                                                                                                                                        • new-york-time