Europe Online Grocery Retailing Market Report 2023
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Description
“Having registered a strong uptick in sales at the height of the COVID-19 pandemic over 2020/21, the European online grocery retailing market entered correction territory in 2022 posting a decline of just under 6%. As the market recalibrates the sector still presents good prospects for retailers as it becomes shaped by shifting consumer priorities. Consumers have become budget-focused and grocers are under pressure to keep prices low while at the same time meeting shoppers’ growing preference for faster and more convenient deliveries. The increasing popularity of promotions in terms of discounts, loyalty card/membership deals as well as rising sustainability awareness bring further opportunities to tap into.”
– Utku Tansel, European Retail Analyst
Key issues covered in this Report
- The impact of the cost-of-living crisis on the online grocery retailing sector
- Current level of online grocery shopping and how people receive their orders; whether people are shopping online for groceries more often
- Which companies people shop online for groceries with
- Attitudes towards certain aspects of online grocery shopping
- The strategies of the major grocery retailers relating to online
- Opportunities for expansion of the market.
Table of Contents
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Overview
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- Key issues covered in this Report
- Report scope
- Consumer research
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Executive Summary
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- The market
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- Figure 1: Europe: estimated online grocery sales (including VAT), 2018-22
- Figure 2: Europe: online grocery as % of all grocery retailing, 2018-22
- Consumers feel the pinch…
- Figure 3: Europe: change in financial situation over the past year, 2023
- Rise in cost of living could squeeze online grocery
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- Figure 4: Europe: change in financial situation over the past year, 2023
- The five-year outlook for Online Grocery retailing
- Figure 5: Outlook for online grocery retailing, 2023-28
- Company Innovations
- Fast delivery innovations continue
- Leading players launch their own speedy delivery formats
- Online grocery continues to ride on the convenience trend
- Figure 6: Walmart InHome delivery expansion
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- Figure 7: Coles and Wing drone delivery
- The Consumer
- The research
- Engagement in online grocery shopping
- Figure 8: Europe: engagement in online grocery shopping, 2023
- Changes in online grocery shopping behaviour
- Figure 9: Europe: changes to online grocery shopping habits, past 12 months, 2023
- How online grocery orders are received
- Figure 10: Europe: delivery/collection options for online grocery orders, 2023
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- Figure 11: Europe: delivery/collection options for online grocery orders by gender, 2023
- Retailers used for online grocery shopping
- Figure 12: Europe: top three most used retailers when shopping for groceries online, 2023
- Attitudes towards online grocery shopping
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- Figure 13: Europe: Attitudes towards grocery retailers, 2023
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France
- Overview
- Key issues covered in this Report
- Areas covered in this Report
- Consumer research
- Market context
- Executive summary
- The five-year outlook for online grocery retailing
- Figure 14: France: Outlook for online grocery retailing, 2023-28
- The online grocery market
- Growth in online grocery sales is returning to normal
- Figure 15: France: Online grocery retailing estimated market size, 2019-22
- Retailers must respond to the squeeze on consumer budgets
- The consumer
- Younger people driving growth, while fewer older people have stuck with online shopping
- Figure 16: France: changes in level of online grocery shopping, 2020 and 2023
- Hybrid shopping will dominate
- Figure 17: France: engagement in online grocery shopping, 2020 and 2023
- A more diverse choice of delivery options is driving growth
- Figure 18: France: delivery/collection options for online grocery orders, 2023
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- Figure 19: France: Retailers used to shop for groceries online, 2020 and 2023
- Convenience and finding a deal motivate online grocery shoppers
- Figure 20: France: Attitudes to shopping online for Groceries, 2023
- Enhance customer loyalty programmes to drive value for shoppers
- Emphasise convenience and speed
- Highlight sustainability actions to attract climate-aware consumers
- Companies and brands
- Leading players
- Market shares
- Figure 21: France: Leading grocery retailers’ online sales estimated as % of all online grocery spending, 2022
- Issues and insights
- What the cost-of-living crisis means for the online grocery channel in France
- The future of the rapid delivery market in France
- Market size
- Figure 22: France: Online grocery retail sales (including VAT), 2018-22
- Market drivers
- The ongoing economic impact of Ukraine and the cost-of-living crisis
- Figure 23: France: key economic projections, annual percentage change, 2019-25
- Inflation on food is soaring
- Figure 24: Inflation, year-on-year change in food and non-alcoholic beverage and alcoholic beverages and tobacco prices, 2016-22
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- Figure 25: France: Inflation, year-on-year change in food, non-alcoholic beverage and alcoholic beverages 2021-23
- Government and retailers come together to agree to a cap on food price rises
- Consumers are worried about their finances
- Figure 26: France: Financial confidence trend data, 2022-23
- Consumers are changing their behaviour
- Figure 27: France: Anticipated behaviour changes as a result of rising prices, 2022-23
- Cash-strapped grocery shoppers look for promotions and switch store
- Figure 28: France: Ways that consumers save money on food and drink, 2023
- Old age dependency ratio is increasing
- Figure 29: France: Population size and median age, 2019-30
- Figure 30: France: Population age structure, 2019-30
- Consumers will become more adventurous in their use of technology
- Figure 31: France: Attitudes to food & drink experiences in the metaverse, 2022
- Consumers will demand action on sustainability
- Figure 32: France: Sustainability-related choice factors in food and drink, 2022
- Buying local and national products to support the economy
- Reducing waste
- Combine sustainability with saving money
- Speak to the feel-good factor
- Figure 33: France: Behaviours related to sustainable food and drink, 2022
- Engagement in online grocery shopping
- Younger people are driving growth
- Retailers need to pivot their online experience for older generations
- Figure 34: France: changes in online grocery shopping over the last year, 2023
- Retailers need to focus on retaining customers
- 16% do all or most of their shopping online
- But hybrid shopping will dominate
- Figure 35: France: engagement in online grocery shopping, 2020 and 2023
- Engage with parents to drive further growth
- Adapt offer for older generations
- Figure 36: France: Online grocery shopping by age, 2023
- Finding ways to recruit new customers among the youngest demographics…
- …and the oldest
- Figure 37: France: demographics of lapsed online grocery shoppers, 2023
- Emphasise how shoppers can find value and cut costs online
- Figure 38: France: Online Grocery shopping by financial situation, 2023
- How online grocery orders are received
- A more diverse choice of delivery options is driving growth
- The rapid delivery market is consolidating
- Click and collect can save shoppers money and reduce retailers’ costs
- Figure 39: France: delivery/collection options for online grocery orders, 2023
- Paris and larger towns and cities are best served
- Figure 40: France: delivery/collection options for online grocery orders, Ile de France vs all France, 2023
- Retailers used for online grocery shopping
- Leclerc is the most used retailer
- Amazon has lost ground in grocery
- Cdiscount has also dropped back
- Picard ranks ahead of Monoprix
- Figure 41: France: Retailers used to shop for groceries online, 2020 and 2023
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- Figure 42: France: Retailer shopped by method of receiving online grocery orders, 2023
- Attitudes towards online grocery shopping
- Enhance customer loyalty programmes to drive value for shoppers
- Use price freezes and promotions
- Online grocery retailers need to emphasise convenience and speed
- Highlight sustainability actions to attract climate-aware consumers
- Direct to Fridge could appeal to younger city dwellers
- Figure 43: France: Attitudes to shopping online for Groceries, 2023
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- Figure 44: France: Attitudes to shopping online for Groceries, by demographics, 2023
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- Figure 45: France: attitudes towards online grocery shopping, by retailers typically used for online grocery shopping, 2023
- Companies and brands
- Overview of the key players
- Figure 46: France: overview of the key online grocery players, 2023
- Home delivery is driving growth
- Le drive piéton – growth is slowing
- Rapid delivery under threat from legislation on “dark stores”
- Subscriptions combine cost-saving with loyalty
- Recent retailer performance and activity
- Figure 47: France: Leading online Grocery retailers by sales (including VAT), 2018-22
- Drive locations
- Figure 48: France: Drive locations, 2013-22
- Figure 49: France: Drive locations by retailer, 2022-23
- E.Leclerc is the market leader
- Carrefour is investing in its digital operations
- Casino focuses on growth as it disposes of unprofitable business
- Market shares
- Figure 50: France: Leading grocery retailers’ online sales estimated as % of all online grocery spending, 2022
- Appendix – Data sources, research methodology and abbreviations
- Abbreviations
- Consumer research methodology
- Data sources
- Overview
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Italy
- Overview
- Key issues covered in this Report
- Areas covered in this Report
- Consumer research
- Market context
- Executive Summary
- The five-year outlook for online grocery retailing
- Figure 51: Italy: online grocery retailing outlook, 2023-28
- The market
- Market size
- Figure 52: Italy: online grocery retailing market size (including VAT), 2018-22
- The consumer
- Online grocery shopping behaviours
- Figure 53: Italy: online grocery shopping behaviours, 2020 and 2023
- How has the frequency of online grocery shopping changed?
- Figure 54: Italy: changes in frequency of online grocery shopping in last 12 months, 2023
- How online grocery orders are received
- Figure 55: Italy: how online grocery orders are received, 2020 and 2023
- Retailers used for online grocery shopping
- Figure 56: Italy: retailers typically used for online grocery shopping, 2020 and 2023
- Attitudes towards online grocery shopping
- Figure 57: Italy: attitudes towards online grocery shopping, 2023
- Companies and brands
- Issues and insights
- How can online grocery retailers respond to the ongoing impact of the cost-of-living crisis?
- Non-essential online grocery deliveries have been hit hardest
- Partnerships point the way forward for rapid delivery propositions
- Continued price sensitivity suggests opportunity for own label expansion
- It’s not just about price
- Where are the opportunities for online grocery retailers to grow their revenues?
- Grow the user base
- Incentivise existing customers to do more of their grocery shopping online
- Pull the heart strings to appeal to families
- Segment the market by launching premium add-ons
- Appeal to customers who see sustainability as an important issue
- Market size
- Figure 58: Italy: online grocery retailing market size, 2018-22
- Market drivers
- The economy
- Figure 59: Italy: key economic indicators, 2021-24
- Inflation
- Figure 60: Italy: annual average consumer prices* of food and drink, annual % change, 2018-22
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- Figure 61: Italy: monthly average consumer prices* of food and drink, annual % change, 2021-23
- Device ownership and online participation
- Figure 62: Italy: device ownership, 2023
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- Figure 63: Italy: devices used to shop online in the past three months, 2023
- Consumer confidence starts to recover again
- Figure 64: Italy: trends in levels of consumer confidence*, 2022-23
- A shift in working patterns: more people work from home than before COVID
- Ageing population: opportunity to turn grey into gold?
- Figure 65: Italy: population size and age structure, 2020-35
- Sustainability rises up the agenda
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- Figure 66: Italy: attitudes to sustainability issues, impacts and responsibilities, 2022
- The impact of the cost-of-living crisis
- Italian consumers’ financial situation
- Figure 67: Italy: financial situation of Italian consumers, 2022-23
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- Figure 68: Italy: consumers’ financial situation compared to a year ago, 2023
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- Figure 69: Italy: consumers’ expectations of their financial situation in the next year, 2023
- Which cost of living pressures have Italian consumers been experiencing?
- Figure 70: Italy: issues affecting Italian consumers in the past two months, 2023
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- Figure 71: Italy: expected responses to rising prices, 2023
- Engagement in online grocery shopping
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- Figure 72: Italy: online grocery shopping behaviours, 2020 and 2023
- Popularity of online grocery shopping among young bodes well for future
- Figure 73: Italy: online grocery shopping behaviours, by age, 2023
- Online grocery shopping is most developed in the north west
- Figure 74: Italy: online grocery shopping behaviours, by region, 2023
- Having children in the household is a major driver of online grocery shopping usage
- Figure 75: Italy: online grocery shopping behaviours, by age of children in household, 2023
- The vast majority of online grocery shoppers still shop mostly in-store
- Figure 76: Italy: distribution of online grocery shoppers, by online shopping behaviours, 2023
- Frequency of online grocery shopping
- Figure 77: Italy: changes in frequency of online grocery shopping in last 12 months, 2023
- Men likely to be shopping more online but less of a change among women
- Figure 78: Italy: changes in frequency of online grocery shopping in last 12 months, by gender, 2023
- Younger age groups most likely to be shopping online more
- Figure 79: Italy: changes in frequency of online grocery shopping in last 12 months, by age, 2023
- Affluence is the biggest factor influencing shopping more for groceries online
- Figure 80: Italy: changes in frequency of online grocery shopping in last 12 months, by net monthly household income, 2023
- Online grocery shopping frequency increases with engagement
- Figure 81: Italy: changes in frequency of online grocery shopping in last 12 months, by online grocery shopping behaviours, 2023
- Strongest growth in the home delivery sector
- Figure 82: Italy: changes in frequency of online grocery shopping in last 12 months, by how online grocery orders are received, 2023
- How online grocery orders are received
- Figure 83: Italy: how online grocery orders are received, 2020 and 2023
- Older opt for home delivery, younger more likely to collect
- Figure 84: Italy: how online grocery orders are received, by age, 2023
- Big differences by working status
- Figure 85: Italy: how online grocery orders are received, by employment status, 2023
- Presence of children is a major factor influencing use of online grocery shopping
- Figure 86: Italy: how online grocery orders are received, by presence of children in household, 2023
- Retailers used for online grocery shopping
- Figure 87: Italy: retailers typically used for online grocery shopping, 2020 and 2023
- Coop appeals particularly to younger online grocery shoppers
- Figure 88: Italy: retailers typically used for online grocery shopping, by age, 2023
- Amazon benefits from offering a truly nationwide online grocery shopping service
- Figure 89: Italy: retailers typically used for online grocery shopping, by region, 2023
- People who shop online for groceries at Amazon and Esselunga are the most affluent
- Figure 90: Italy: retailers typically used for online grocery shopping, by net monthly household income, 2023
- Presence of children is a driver for most supermarket online shopping services
- Figure 91: Italy: retailers typically used for online grocery shopping, by presence of children in the household, 2023
- Esselunga has least overlap with Amazon
- Figure 92: Italy: retailers typically used for online grocery shopping, by retailers typically used for online grocery shopping, 2023
- Committed online grocery shoppers significantly more likely to shop with Esselunga
- Figure 93: Italy: retailers typically used for online grocery shopping, by online grocery shopping behaviours, 2023
- Most retailers are shopped at by customers who say they are doing more online grocery shopping rather than less
- Figure 94: Italy: retailers typically used for online grocery shopping, by changes in frequency of online grocery shopping in last 12 months, 2023
- Attitudes towards online grocery shopping
- Sustainability issues are still important to consumers, despite cost-of-living crisis
- Collection is a valuable driver of footfall
- Promotions play a significant role in influencing online grocery purchases
- A third would be happy to have online grocery deliveries unpacked for them
- Figure 95: Italy: attitudes towards online grocery shopping, 2023
- Young keen to embrace sustainability measures
- Figure 96: Italy: attitudes towards online grocery shopping, by age, 2023
- More affluent online grocery shoppers are keenest on sustainability initiatives
- Figure 97: Italy: attitudes towards online grocery shopping, by net monthly household income, 2023
- Parents say time saved ordering groceries online is worth the delivery fee
- Figure 98: Italy: attitudes towards online grocery shopping, by presence of children, 2023
- Most frequent online grocery shoppers most likely to order products on promotion
- Figure 99: Italy: attitudes towards online grocery shopping, by online shopping behaviours, 2023
- Esselunga and Conad shoppers particularly keen on promotions and unpacking
- Figure 100: Italy: attitudes towards online grocery shopping, by retailers typically used for online grocery shopping, 2023
- Companies and brands
- Store-based grocers
- Esselunga leads the way
- Conad rebrands and increases coverage
- Coop’s structure hampers provision of a truly national service
- Carrefour
- Online-only companies
- Online-only grocery specialists
- Online-only grocery generalists
- Online-only grocery delivery providers
- Appendix – Research methodology, data sources and abbreviations
- Abbreviations
- Consumer research methodology
- Data sources
- Overview
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Spain
- Overview
- Key issues covered in this Report
- Areas covered in this Report
- Consumer research
- Market context
- Executive summary
- The five-year outlook for online grocery retailing
- Figure 101: Spain: outlook for online grocery retailing, 2023-28
- The market
- Market size and performance
- Figure 102: Spain: estimated online grocery retailing sales (including VAT), 2020-22
- The consumer
- Engagement in online grocery shopping
- Figure 103: Spain: engagement in online grocery shopping, 2023
- Most use online to fill in the gaps in the main grocery shop
- Figure 104: Spain: engagement in online grocery shopping, 2023
- How they receive online grocery orders
- Figure 105: Spain: delivery/collection options for online grocery orders, 2023
- Retailers used to shop for groceries online
- Figure 106: Spain: retailers used to shop for groceries online, 2023
- Attitudes to online grocery shopping
- Figure 107: Spain: Attitudes to online grocery shopping, 2023
- Companies and brands
- Leading players
- Market shares
- Figure 108: Spain: leading online grocery retailers’ estimated share of all online grocery sales, 2022
- Issues and insights
- Sustainability can bring affordability during the cost-of-living crisis
- Greener deliveries by robots
- Barcelona ban on ‘dark stores’ will impact local delivery services apps
- Market size and performance
- Figure 109: Spain: estimated online grocery retailing sales (including VAT), 2020-22
- Market drivers
- Challenging year ahead, but prospects for 2024 are more upbeat
- Figure 110: Spain: key economic projections, % annual change, 2019-24
- Consumers less gloomy as price pressures ease
- Figure 111: Spain: trends in levels of consumer confidence, 2020-23
- Food prices reach record levels despite VAT cuts
- Figure 112: Spain: Consumer prices * of food, non-alcoholic beverages and alcoholic beverages, annual % change, 2021-23
- Higher food and drink prices fuelling a preference for own-brands
- Figure 113: Spain: Issues faced in the last 2 months, 2022-23
- Core online grocery shopping group among the most financially stable
- Figure 114: Spain: Changes in financial situation over the past year, 2022-23
- Budgeting will remain a priority for those worse off financially
- Figure 115: Spain: Changes in financial situation over the past year, 2022-23
- Ecommerce pandemic-driven sales gains wiped out
- Figure 116: Spain: retail sales value and volume via mail order houses or via internet, 2020-23
- Inflation offsets volume drops
- Figure 117: Spain: retail sales value and volume of food, beverages and tobacco in specialised stores, 2020-23
- Spain’s ageing population is not without its online grocery opportunities
- Figure 118: Spain: Population size and age structure, 2020-35
- Rapid increase in food prices driving up spending on food and drink
- Figure 119: Spain: Consumer spending on food and drink (including VAT), 2017-22
- Ordering groceries via smartphone app will rise
- Figure 120: Spain: devices used to shop online in the past three months, 2023
- Voice-driven commerce a frictionless way to shop groceries online
- Figure 121: Spain: Device ownership, 2023
- Engagement in online grocery shopping
- 55% of Spanish consumers continue to buy groceries online post-pandemic
- Figure 122: Spain: engagement in online grocery shopping, 2020 and 2023
- Most use online for top-up grocery purposes
- Figure 123: Spain: engagement in online grocery shopping, 2020 and 2023
- Young consumers, high earners and households with young kids are key
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- Figure 124: Spain: engagement in online grocery shopping by gender, age, net monthly household income and children in household, 2023
- A little, but more often
- Figure 125: Spain: change in frequency of online grocery shopping, 2023
- How online grocery orders are received
- Delivery by courier the go-to for four in 10 shoppers
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- Figure 126: Spain: delivery/collection options for online grocery orders, 2020 and 2023
- Younger online grocery shoppers more likely to use faster delivery by courier
- Figure 127: Spain: delivery/collection options for online grocery orders by age, 2020 and 2023
- Retailers used for online grocery shopping
- Nearly half of all online grocery shoppers shop at Mercadona
- Figure 128: Spain: retailers used to shop for groceries online, 2020 and 2023
- Attitudes towards online grocery shopping
- Figure 129: Spain: attitudes to shopping online for groceries, 2023
- With the cost-of-living crisis shrinking budgets, shoppers are looking for deals
- Figure 130: Spain: attitudes to shopping online for groceries, products on promotion, 2023
- Recyclable packaging an important factor when selecting an online grocer
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- Figure 131: Spain: attitudes to shopping online for groceries, recyclable packaging, 2023
- Those more demanding of speed are far more accepting of delivery charges
- Figure 132: Spain: attitudes to shopping online for groceries, time-saving justifies delivery charge, 2023
- Seamless store-to-fridge grocery delivery
- Figure 133: Spain: attitudes to shopping online for groceries, delivery drivers accessing home, 2023
- Shoppers largely reluctant to pay extra for greener deliveries
- Figure 134: Spain: attitudes to shopping online for groceries, pay more to offset emissions, 2023
- Make click-and-collect a destination where several missions can be fulfilled
- Figure 135: Spain: attitudes to shopping online for groceries, run errands when collect shopping, 2023
- Potential for upselling with in-store click-and-collect
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- Figure 136: Spain: attitudes to shopping online for groceries, purchase other items when collect shopping, 2023
- Companies and brands
- Mercadona is the leading online grocer
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- Figure 137: Spain: leading online grocery retailers estimated sales (including VAT), 2020-22
- Market shares
- Figure 138: Spain: leading online grocery retailers’ estimated market share of all online grocery sales, 2020-22
- Appendix – Research methodology, data sources and abbreviations
- Abbreviations
- Consumer research methodology
- Data sources
- Overview
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UK
- Overview
- Key issues covered in this Report
- Products covered in this Report
- Executive Summary
- Following a further rebalance in 2023 online grocery sector set to return to growth
- Figure 139: Category outlook, 2023-28
- The market
- Market rebalances in 2022 from record highs in 2021
- Figure 140: All online grocery retail sales (including VAT), 2017-22
- Market expected to grow by a fifth between 2024 and 2027
- Figure 141: Market forecast for all online grocery retail sales, 2017-27
- Online unlikely to pass peak-pandemic levels in the next five years
- Figure 142: Online grocery as a % of all grocery sales, 2017-27
- Leading retailers
- Tesco the dominant player in the online grocery space
- Figure 143: Leading online grocery retailers’ estimated market shares (excluding VAT), 2022
- Key delivery partners score well on brand metrics
- Figure 144: Key metrics for selected brands, 2022-23
- Rapid delivery a small proportion of the overall market value
- Figure 145: Estimated composition of the online grocery sector, by type of service, 2019-22
- Motatos launches in the UK and raises £33m in funding
- Figure 146: Motatos UK Launch, 2022
- Asda experiments with driverless delivery
- Figure 147: Asda/Wayve self-driving delivery vehicle, 2023
- Co-op expands autonomous delivery
- Figure 148: Co-op and Starship Technologies autonomous grocery delivery, Sale, Greater Manchester, 2023
- The consumer
- Number shopping online for groceries falls
- Figure 149: Online grocery use, 2022
- Overall reliance on online grocery services eases
- Figure 150: Types of online grocery users as a proportion of all online grocery users, 2022
- Home delivery remains dominant as rapid delivery demand eases
- Figure 151: How groceries are typically delivered, 2020-22
- Fresh purchasing declines as reliance on the online channel eases
- Figure 152: Products typically purchased in online grocery orders, 2021-22
- Almost a third of online grocery shoppers use Tesco most often
- Figure 153: Online grocery retailer shopped with and shopped with most often, 2022
- Rapid delivery retailer use falls
- Figure 154: Alternative food and drink retailers shopped with online, 2021-22
- Convenience the main driver, but value credentials show opportunity
- Figure 155: Reasons for shopping online for groceries, 2022
- Fresh and cost expectations the major barriers to online use
- Figure 156: Reasons for not shopping online for groceries, 2022
- Half would be happy to offset the emissions of their deliveries
- Figure 157: Online grocery-shopping behaviours, 2023
- Issues and Insights
- The impact of the cost of living crisis on online grocery use
- Rapid delivery: a health check
- Market Drivers
- Inflation will continue to eat into consumer spending power over the course of 2023
- Figure 158: Inflation, overall index (CPI) and core categories, 2022-23
- All grocery sales value and volume
- Figure 159: All grocery retail sales, non-seasonally adjusted sales performance, in value and volume terms, 2022-23
- Pressure on middle incomes leaves online grocery exposed
- Real incomes remain in decline
- Figure 160: Real income growth: CPIH versus average weekly earnings growth, 2016-23
- Consumer spending power will be curbed
- Consumers’ financial wellbeing has fallen from the highs of 2021…
- Figure 161: Household financial wellbeing index, 2016-23
- …and most people are feeling the effects of price rises
- Market Size and Performance
- Online grocery sales turn negative in 2022 as market rebalances
- Figure 162: All online grocery retail sales (including VAT), 2017-22
- Figure 163: All online grocery retail sales (including VAT), at current and constant prices, 2017-22
- Rebalancing has continued into 2023 but is easing…
- Figure 164: Store-based online grocery retail sales, non-seasonally adjusted year-on-year growth, 2020-23
- …and average weekly sales in the sector are still 59.8% higher than pre-pandemic
- Figure 165: Store-based online grocery, average weekly sales, non-seasonally adjusted (including VAT), 2020-23
- Market Forecast
- Following a further rebalance in 2023 the online grocery sector is set to return to growth
- Figure 166: Category outlook, 2023-28
- Long term there are still strong growth opportunities for online grocery
- Figure 167: Market forecast for all online grocery retail sales, 2017-27
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- Figure 168: Detailed market forecast for all online grocery retail sales, 2017-27
- Online unlikely to pass peak-pandemic levels in the next five years
- Figure 169: Online grocery as a percentage of all grocery sales, 2017-27
- Learnings from the last income squeeze
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- Figure 170: All online grocery retail sales (including VAT), 2011-16
- Forecast methodology
- Market Segmentation
- Store-based retailers dominate the online grocery market
- Store-based online grocery forecast to grow by a fifth between 2023 and 2027
- Figure 171: Online grocery sales by store-based grocery retailers (inc. VAT), 2017-27
- Online-only market also set to see consistent growth from 2024
- Figure 172: Online grocery sales by online-only retailers (inc. VAT), 2017-27
- Rapid delivery a small proportion of the overall market value
- Figure 173: Estimated composition of the online grocery sector, by type of service, 2019-22
- Online Grocery Use
- Number shopping online for groceries falls
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- Figure 174: Online grocery use, 2022
- Overall reliance on online grocery services eases
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- Figure 175: Types of online grocery users as a proportion of all online grocery users, 2022
- Despite total users falling, the online channel is still attracting new customers
- Figure 176: When users began shopping online for groceries, 2022
- Demographics of Online Grocery Shoppers
- Core demographics remain consistent but the pandemic has diversified the market
- Those aged 25-44 remain the core audience, but some have moved away
- Figure 177: Any online grocery use, by age group, 2019-22
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- Figure 178: Level of online grocery shopping, by age, 2019-22
- Parental use eases back to pre-pandemic levels
- Figure 179: Online grocery use, by parental status, 2019-22
- Still a sector with a more affluent audience
- Figure 180: Total online grocery use, by household income, 2019-22
- Online grocery use continues to peak in urban areas
- Figure 181: Any online grocery use, by type of location lived in and region, 2019-22
- How Groceries Are Delivered
- Home delivery remains dominant as rapid delivery demand eases
- Figure 182: How groceries are typically delivered, 2020-22
- Younger shoppers leaning more on courier delivery
- Figure 183: How groceries are typically delivered, by level of online grocery use, 2022
- Linking the channels brings additional opportunities
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- Figure 184: Additional behaviours when collecting online grocery orders, 2022
- Products Purchased Online
- Fresh purchasing declines as reliance on the online channel eases
- Figure 185: Products typically purchased in online grocery orders, 2021-22
- Barriers to fresh directly tied to access
- Figure 186: Products typically purchased in online grocery orders, by area lived in, 2022
- More immediacy-based need in rapid delivery
- Figure 187: Products typically purchased in online grocery orders, by type of delivery service/retailer used, 2022
- Leading Retailers Used
- Almost a third of online grocery shoppers use Tesco most often
- Figure 188: Online grocery retailer shopped with and shopped with most often, 2022
- Secondary destinations see a greater decline in shopper numbers
- Figure 189: Online grocery retailer shopped with online, 2019-22
- Alternative Retailers Used
- Rapid delivery use falls but recipe box maintains despite cost of living crisis
- Figure 190: Alternative food and drink retailers shopped with online, 2021-22
- Rapid delivery: serving a magnified version of the core online grocery shopper
- Figure 191: Demographic profile of online grocery retailers used and alternative food and drink retailers used, by age and household income, 2022
- Reasons for Shopping Online for Groceries
- Convenience the main driver, but value credentials show opportunity
- Figure 192: Reasons for shopping online for groceries, 2022
- For younger shoppers the ability to control spending is key to online grocery use
- Figure 193: Reasons for shopping online for groceries, by age, 2022
- Reasons for Not Shopping Online for Groceries
- Barriers to fresh and cost expectations the major barriers
- Figure 194: Reasons for not shopping online for groceries, 2022
- Promote spending tracking online to underpin value credentials
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- Figure 195: Reasons for not shopping online for groceries, by level of previous use/future interest, 2022
- Attitudes towards Online Grocery Shopping
- Four fifths use loyalty schemes when shopping online
- Figure 196: Use and attitudes towards value-added benefits and shopping online for groceries, 2022
- Half would be happy to offset the emissions of their deliveries
- Figure 197: Use and attitudes towards value-added benefits and shopping online for groceries, 2022
- Stronger interest from younger and time-pressed consumers in in-home delivery
- Figure 198: Attitudes to in-home grocery delivery, 2022
- Leading Retailers and Market Share
- Tesco estimated to account for a quarter of the market
- Figure 199: Leading online grocery retailers’ estimated market shares (excluding VAT), 2022
- Figure 200: Leading online grocery retailers, estimated market shares, 2019-22
- Leading players: a note on revenues
- Leading players: revenues
- Figure 201: Leading retailers’ net online grocery revenues, 2019-23
- Leading players: revenue breakdown
- Figure 202: Leading online grocery retailers’ estimated total online revenues, by grocery and non-grocery, 2019-22
- Smaller players: market share and revenue
- Figure 203: Smaller online food and drink retailers, estimated market shares, 2019-22
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- Figure 204: Smaller online food and drink retailers, revenues, 2019-22
- Brand Research
- Key findings
- Brand map
- Figure 205: Attitudes towards and usage of selected brands, 2022-23
- Key brand metrics
- Figure 206: Key metrics for selected brands, 2022-23
- Brand attitudes: Delivery partners stand out for online credentials
- Figure 207: Attitudes, by brand, 2022-23
- Brand personality: Youth focus of delivery partners give their brands a ‘fun’ image
- Figure 208: Brand personality – macro image, 2022-23
- Delivery partners have a premium brand association
- Figure 209: Brand personality – micro image, 2022-23
- Brand analysis
- Leading retailers
- Leading delivery partners
- Launch Activity and Innovation
- Rapid delivery expands and evolves
- Deliveroo expands Hop both for partners and shoppers
- Rapid delivery tie-ups continue
- New launches
- Figure 210: Motatos UK Launch, 2022
- Fulfilment
- Tesco and Ikea partner for car-park collection
- Walmart unveils drone delivery in the US
- Figure 211: Walmart Farmington drone delivery hub, 2022
- Asda experiments with driverless delivery
- Figure 212: Asda/Wayve self-driving delivery vehicle, 2023
- Co-op expands autonomous delivery
- Figure 213: Co-op and Starship Technologies’ autonomous grocery delivery, Sale, Greater Manchester, 2023
- Online grocers price-matching Tesco
- Advertising and Marketing Activity
- Above the line spending drops year-on-year but remains elevated against pre-pandemic
- Figure 214: UK online supermarket/grocery/food retailers and delivery partners’ total above-the line, online display and direct mail advertising expenditure, 2018-22
- Rapid delivery retailers continue to invest in above-the-line to build awareness
- Figure 215: Leading Online supermarket/grocery/food retailers and delivery partners’ total recorded above-the-line, online display and direct mail advertising expenditure, 2018-22
- Cinema fastest growing above-the-line spending category in 2022
- Figure 216: UK Online supermarket/grocery/food retailers and delivery partners’ total recorded above-the-line, online display and direct mail advertising expenditure, by media type, 2018-22
- Nielsen Ad Intel coverage
- Appendix – Data Sources, Abbreviations and Supporting Information
- Data sources
- Financial definitions
- Abbreviations
- Consumer research methodology
- Appendix – Forecast Methodology
- Market forecast and prediction intervals: total online grocery retail sales (including VAT)
- Figure 217: All online grocery retail sales (including VAT) market size and forecast, at current and constant prices, 2017-27
- Figure 218: All online grocery retail sales (including VAT), current price prediction intervals, 2022-27
- Market forecast and prediction intervals: store-based online grocery retail sales (including VAT)
- Figure 219: Online grocery sales by store-based grocery retailers (including VAT) market size and forecast, at current and constant prices, 2017-27
- Figure 220: Online grocery sales by store-based grocery retailers (including VAT), current price prediction intervals, 2022-27
- Market forecast and prediction intervals: online-only grocery retail sales (including VAT)
- Figure 221: Online grocery sales by online-only retailers (including VAT) market size and forecast, current and constant prices, 2017-27
- Figure 222: Online grocery sales by online-only retailers (including VAT), current price prediction intervals, 2022-27
- Market drivers and assumptions
- Forecast methodology
- Overview
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