2021
0
Europe Online Grocery Retailing Market Report 2021
2021-04-22T04:05:18+01:00
OX1045453
3195
136897
[{"name":"Online Grocery","url":"https:\/\/store.mintel.com\/industries\/retail\/online-grocery"}]
Report
en_GB
“Online grocery has benefited from the COVID-19 outbreak in Europe having registered a strong uptick in sales during 2020. However, many grocery retailers were quickly overwhelmed by the unprecedented demand…

Europe Online Grocery Retailing Market Report 2021

£ 3,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the Europe Online Grocery Retailing market, including the behaviours, preferences and habits of the consumer.

Online grocery retailing has been performing strongly in recent years across Europe, with the online grocery retailers market share rising thanks to the COVID-19 pandemic. Most countries continue to experience growth as broadband penetration rises and an increasing number of consumers embrace online shopping.

Unlike most other sectors, online grocery retailing is experiencing a positive effect from the COVID-19 pandemic, with online sales soaring, new consumers being encouraged to shop online for the first time, and existing online shoppers expending the range of products they are prepared to buy online. The COVID-19-linked boost in online demand is creating untapped opportunities to engage with customers through social media as well as tools like loyalty schemes and delivery passes.

While this has provided a positive effect for many grocers, representing a threat to those without a strong history of ecommerce activity or the capabilities to cope with the unprecedented rise in online demand. With lockdown pressure piling up, many grocery retailers quickly became overwhelmed and they had to react quickly to strengthen their online platforms and also address initial supply issues. Even those that did not previously offer home delivery have ventured into this area and we have even seen partnerships with delivery and fulfilment businesses, like Deliveroo and Uber Eats, to allow people to shop online for groceries.

Read on to discover more details or take a look at all of our Food Retail Market Research.

Quickly understand

  • The impact of COVID-19 on the online grocery retailing sector
  • Current usage of online grocery shopping and how people receive their orders
  • Which companies people shop online for groceries with.
  • The strategies of the major grocery retailers relating to online
  • Opportunities for expansion of the market.
  • Europe online grocery retailers market share.

Covered in this report

French Brands: Chrondrive, Leclerc, Auchan, Carrefour, Courses U, Intermarché, Cdiscount, U Drive, Monoprix, Cora, Franprix, Biocoop.

Italy Brands: Conad, Esselunga, Carrefour, Coop, Eismann, Bofrost, Despar, Eurospar, Interspar, Familia, quom.it, mycookingbox.it, Cicalia.

Spain Brands: Carrefour, Mercadona, Dia, Alcampo, Hipercor, Eroski, Caprabo, Condis.

UK Brands: Amazon, Ocado, Tesco, Sainsbury’s, Asda, Waitrose, Morrisons, Iceland, Hello Fresh, Naked Wines, Drinks Supermarket, Majestic Wine, Laithwaite’s, Gousto, Abel & Co, Farm Drop, Mindful Chef, Riverford.

Expert analysis from a specialist in the field

This report, written by Utku Tansel, a leading analyst in the Retailsector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Online grocery has benefited from the COVID-19 outbreak in Europe having registered a strong uptick in sales during 2020. However, many grocery retailers were quickly overwhelmed by the unprecedented demand and struggled to adapt to the new retail landscape emerging from the pandemic. Even those that didn’t previously offer home delivery have ventured into this area and we have witnessed collaborations with delivery and fulfilment businesses, like Deliveroo and Uber Eats. The lasting legacy of the outbreak will be the opening up the online grocery market to large numbers of customers who may not have shopped for groceries online previously. Going forwards, the real challenge will be retaining this new consumer group, while providing a seamless shopping experience and making online operations profitable.
Utku Tansel - European Retail AnalystUtku Tansel
European Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Report scope
    • Consumer research
    • Market definition
    • Data sources
  2. Executive Summary

    • The market
      • Figure 1: Europe: estimated online grocery sales (including VAT), 2018-20
      • Figure 2: Europe: online grocery as % of all grocery retailing, 2018-20
    • Company innovations
    • Online grocers leverage the power of technology
    • Carrefour launches voice-enabled grocery shopping service in France
    • Online retail grocery chatbot service
    • ‘Intelligent shopping list’ app
    • Coop Sweden’s unmanned store
    • Amazon Fresh muscles in on Europe
    • Amazon Fresh launch increases competition in Spain
    • Eastern Europe: the next battleground?
    • Maxima Grupė and Carrefour launch online grocery services in Poland
    • Tesco expands online shopping service in Slovakia
    • The consumer
    • The research
    • Engagement in online grocery shopping
      • Figure 3: Europe: engagement in online grocery shopping, December 2020
    • How they receive their online grocery orders
      • Figure 4: Europe: delivery/collection options for online grocery orders, December 2020
      • Figure 5: Europe: delivery/collection options for online grocery orders by gender, December 2020
    • Retailers shopped with
      • Figure 6: Europe: top three most used retailers when shopping for groceries online, December 2020
    • Reasons for not shopping online for groceries
      • Figure 7: Europe: reasons for not shopping online for groceries, December 2020
  3. Impact of COVID-19 on Online Grocery Retailing

    • Short, medium and long term impact on the sector
      • Figure 8: Short, medium and long term impact of COVID-19 on online grocery retailing, March 2021
    • Opportunities and threats
    • The pandemic presents new prospects in online grocery
    • Delivery boxes: a new opportunity
    • Online shopping could help cash-strapped shoppers control spending
    • Grocery delivery services speed up
    • High delivery charges pose a threat to online grocery
    • Profitability concerns dampen optimism
    • How COVID-19 will reshape the industry
    • Food marketplaces widen offer
    • Supporting the local community will gain further relevance
    • Mobile apps facilitate home delivery for smaller players
    • Discounters moving into online grocery
    • The impact of COVID-19 on consumer behaviour across Europe
    • Concerns around exposure to COVID-19 fall as vaccine roll-out begins
      • Figure 9: Europe: those extremely worried about the risk of being exposed to COVID-19, March 2020-February 2021*
    • The financial impact of COVID-19
    • Furlough and job losses
    • Spending falls and consumers look to save where possible
      • Figure 10: Europe: financial impact of COVID-19, February 2021*
    • Changes to shopping behaviour
    • Non-essential spending reduced
    • Online shopping receives major boost
    • Click-and-collect finds new meaning amidst the pandemic
    • Localism rises up the agenda
    • Second wave leads to renewed stockpiling
      • Figure 11: Europe: changes to shopping behaviour since the start of the COVID-19 outbreak, February 2021*
    • Consumers prioritising healthy eating since the pandemic
      • Figure 12: Europe: changing priorities since the COVID-19 outbreak, February 2021*
    • Spending intentions
    • Food sector sees planned spending vary by country
      • Figure 13: Net balance* of expected spending on selected items in the next month, February 2021**
    • British consumers planning to spend more on food in the next month
      • Figure 14: Europe: net balance* of expected spending on food excluding takeaways/home delivery in the next month, February 2021**
    • How the crisis is affecting key consumer segments
    • Women and older people most concerned about the pandemic
      • Figure 15: Europe: those extremely worried about the risk of being exposed to COVID-19, by gender and age, February 2021*
    • Younger consumers embracing click-and-collect
      • Figure 16: Europe: consumers using click and collect more, by gender and age, February 2021*
    • Online shopping boom is relatively uniform
      • Figure 17: Europe: consumers shopping more online, by gender and age, February 2021*
    • Younger and middle-aged consumers more likely to be cutting back on non-essential spend
      • Figure 18: Europe: consumers cutting back on non-essential spending, by gender and age, February 2021*
    • COVID-19: market context
    • France
    • Germany
    • Italy
    • Spain
    • UK
  4. France

    • Overview
    • Key issues covered in this Report
    • Areas covered in this Report
    • Consumer research
    • Executive summary
    • The market
    • Market size
      • Figure 19: France: online grocery retailing estimated market size, 2016-20
    • COVID-19 impacts economic growth
    • Financial insecurity for many consumers
    • The population is ageing
    • Shopping online and on mobiles is growing
    • Companies and brands
    • Leading players
      • Figure 20: France: leading grocery retailers’ online sales estimated as % of all online grocery spending, 2020
    • Competitive strategies
    • Government is supporting small companies to digitalise
    • The consumer
    • Engagement in online grocery shopping
      • Figure 21: France: online grocery shopping by age, December 2020
      • Figure 22: France: online grocery shopping by financial situation, December 2020
    • How they receive their online grocery orders
      • Figure 23: France: delivery/collection options for online grocery orders, December 2020
    • Retailers shopped with
      • Figure 24: France: retailers used to shop for groceries online, December 2020
    • Reasons for not shopping online for groceries
      • Figure 25: France: reasons for not shopping online for groceries, December 2020
    • Issues and insights
    • How can online grocers retain cash-strapped shoppers beyond the COVID-19 epidemic
    • Addressing the growing importance of localism
    • The market – Key takeaways
    • COVID-19 impacts economic growth
    • Financial insecurity for many consumers
    • Old age dependency ratio is increasing
    • Shopping online and on mobiles is growing
    • Online grocery spending up by 40% in 2020
    • Market drivers
    • Economic overview
    • GDP fell by 8% in 2020
    • 2021 may see recovery of over 5%
    • Financial insecurity for many consumers
      • Figure 26: France: changes to consumers’ financial situation as a result of the COVD-19 outbreak, selected dates, 2020/21
      • Figure 27: France: important qualities in food/drink post-COVID, July 2020
    • Population size and structure
    • Old age dependency ratio is increasing
      • Figure 28: France: population size and age structure, 2019-30
    • Inflation
      • Figure 29: Inflation, year-on-year change in food and non-alcoholic beverage and alcoholic beverages and tobacco prices, 2016-20
      • Figure 30: France: inflation, year-on-year change in food and non-alcoholic beverage and alcoholic beverages and tobacco prices, January 2019-December 2020
    • Device ownership and online participation
      • Figure 31: France: internet access methods, July 2020
      • Figure 32: France: participation in online shopping by device, July 2020
    • Shifts in consumer spending, lifestyles and behaviour since COVID-19
    • How permanent will the shift to online shopping be?
      • Figure 33: France: post-COVID food and drink aspirations, July 2020
    • Growing localism
      • Figure 34: France: post-COVID food and drink aspirations, July 2020
    • “Green” shopping
      • Figure 35: France: attitudes toward healthy eating and sustainability, July 2020
    • Market size
    • Online grocery spending up by 40% in 2020
      • Figure 36: France: online grocery retail sales (including VAT), 2016-20
    • Companies and brands – Key takeaways
    • Leclerc dominates a concentrated market
    • Faster and more convenient grocery shopping services
    • More options with Drive click&collect orders
    • Marketplaces an opportunity to diversify and expand ranges
    • Government is supporting small companies to digitalise
    • Leading retailers and market shares
    • Market shares
      • Figure 37: France: leading grocery retailers’ online sales estimated as % of all online grocery spending, 2020
    • Revenues
      • Figure 38: France: leading online grocery retailers by estimated sales (excluding VAT), 2016-20
    • Google search interest
      • Figure 39: France: search interest on Google, selected grocery retailers, last 12 months, March 2020-March 2021
    • Competitive strategies
    • Faster and more convenient grocery shopping services
    • Lockers
    • Ultra-fast via delivery partners
    • Pedestrian Drives
    • Diversifying services at Drive outlets
    • Selling local produce
    • The changing role of Amazon
    • Ones to watch
    • Marketplaces expand offer available to consumers
    • The consumer – Key takeaways
    • Half shop online for groceries
    • Millennials shop most
    • Lower engagement in poorer households
    • Delivery options are increasing
    • Amazon is the leading retailer
    • Fresh produce is the main deterrent to shopping online
    • Engagement in online grocery shopping
      • Figure 40: France: engagement in online grocery shopping, December 2020
    • Demographics of online grocery shoppers
      • Figure 41: France: online grocery shopping by age, December 2020
    • Usage peaks among younger consumers of both sexes
      • Figure 42: France: online grocery shopping by age and gender, December 2020
    • Parents are more likely to shop online for groceries
      • Figure 43: France: online grocery shopping by gender and parental status, December 2020
    • Convenience can be costly
      • Figure 44: France: online grocery shopping by financial situation, December 2020
    • How they receive their online grocery orders
      • Figure 45: France: delivery/collection options for online grocery orders, December 2020
      • Figure 46: France: delivery/collection options for online grocery orders, Ile de France vs all France, December 2020
    • Retailers shopped with
    • Amazon is the most used retailer
    • Leclerc is the dominant grocer
      • Figure 47: France: retailers used to shop for groceries online, December 2020
      • Figure 48: France: online retailers used for grocery shopping in the last 12 months by age, income and parental status, online generalist retailers, December 2020
      • Figure 49: Online retailers used for grocery shopping in the last 12 months by age, income and parental status, grocery retailers, December 2020
    • Reasons for not shopping online for groceries
    • Fresh produce the main concern from those who don’t shop online for groceries
      • Figure 50: France: reasons for not shopping online for groceries, December 2020
    • Older people held back most by fresh food and shopping experience and younger by cost
      • Figure 51: France: reasons for not shopping online for groceries, by demographics, December 2020
      • Figure 52: France: reasons for not shopping online for groceries, by type of non-online grocery shopper, December 2020
    • Appendix – Data sources and abbreviations
    • Abbreviations
    • Data sources
  5. Italy

    • Overview
    • Key issues covered in this Report
    • Areas covered in this Report
    • Consumer research
    • Executive summary
    • The market
    • Market size
      • Figure 53: Italy: online grocery retailing market size, 2018-20
    • COVID-induced pressure on household finances will increase focus on click & collect
    • Ageing population places premium on UX and more frequent delivery options
    • Home cooking growth, localism and sustainability set to influence market direction
      • Figure 54: Italy: consumer resolutions about food and drink once the COVID-19/coronavirus pandemic subsides, July 2020
    • Companies and brands
    • Leading players
    • Competitive strategies
    • The consumer
    • Engagement in online grocery shopping
      • Figure 55: Italy: engagement in online grocery shopping, December 2020
    • How they receive their online grocery orders
      • Figure 56: Italy: delivery/collection options for online grocery orders, December 2020
    • Retailers shopped with
      • Figure 57: Italy: retailers used to shop for groceries online, December 2020
    • Reasons for not shopping online for groceries
      • Figure 58: Italy: reasons for not shopping online for groceries, December 2020
    • Issues and insights
    • COVID-19 boosts online grocery, but specialists face growing competition online
    • Where can online grocery retailers improve?
    • How can retailers maximise the profitability of their online operations?
    • The market – Key takeaways
    • Online grocery market boosted by COVID-19 and lockdowns
    • COVID-induced pressure on household finances will increase focus on click & collect
    • Ageing population places premium on UX and more frequent delivery options
    • A shift towards m-commerce
    • Localism and sustainability rise up the agenda
    • Pandemic sparked home cooking boom but some consumers still need support
    • Snacking growth offers potential for healthy alternatives and snacking kits
    • Market drivers
    • Economic overview
      • Figure 59: Italy: changes to consumers’ financial situation as a result of the COVID-19 outbreak, selected dates, 2020/21
    • Population size and structure
      • Figure 60: Italy: population size and age structure, 2019-30
    • Inflation
      • Figure 61: Italy: inflation, year-on-year change in food and non-alcoholic beverage and alcoholic beverages and tobacco prices, January 2019-December 2020
    • Device ownership and online participation
      • Figure 62: Italy: device ownership, July 2020
      • Figure 63: Italy: devices used to access the internet in the past three months, July 2020
      • Figure 64: Italy: devices used to shop online in the past three months, July 2020
    • Shifts in consumer spending, lifestyles and behaviour since COVID-19
    • Spike in people spending more on food drops away again as restrictions are lifted
      • Figure 65: Italy: trend in spending on food (excluding takeaways/home delivery) compared to before the COVID-19 outbreak, December 2020 and February 2021
    • A permanent shift towards buying online?
    • A temporary shift or permanent shift in working patterns?
    • A growing localism movement
    • Sustainability and traceability rises up the agenda
    • Italians rediscover their love of cooking during lockdowns
    • A disconnect between desire and ability to cook?
    • Snacking growth offers potential for healthy alternatives and snacking kits
    • A shift upmarket?
    • Market size
      • Figure 66: Italy: online grocery retailing market size, 2018-20
    • Companies and brands – Key takeaways
    • Retailers scramble as COVID demand overwhelms them
    • Structure of many leading grocers holds back online development
    • Many operators still impose minimum order values and high delivery charges
    • Express delivery providers have boosted home delivery capacity
    • Everli outperforms the market, quadruples turnover
    • Amazon provides biggest threat to specialists
    • Leading retailers and competitive strategies
    • Store-based grocers
    • Esselunga
    • Conad
    • Coop
    • Carrefour
    • Other store-based grocery retailers
    • Online-only companies
    • Online-only grocery specialists
    • Online-only grocery generalists
    • Online-only grocery delivery providers
    • Google search interest
      • Figure 67: Italy: trends in searches for online shopping services of leading grocery retailers, 1 January 2020-15 March 2021
    • The consumer – Key takeaways
    • Strong untapped potential in the market, while lapsed users also offer opportunity
    • Less populated areas could represent an opportunity for Amazon or regional/local retailers
    • Recipe box ripe for exploration by major retailers
    • Amazon presents clear threat to major store-based retailers
    • Preference for choosing fresh products oneself is an obstacle to online shopping
    • Desire to support physical stores could be turned into a positive by local retailers
    • Issue of high charges and minimum spends can be overcome by delivery pass
    • Retailers need to tackle issue of online shoppers not being able to choose products themselves
    • Engagement in online grocery shopping
      • Figure 68: Italy: engagement in online grocery shopping, December 2020
    • Demographics of online grocery shoppers
      • Figure 69: Italy: engagement in online grocery shopping, by age, December 2020
      • Figure 70: Italy: engagement in online grocery shopping, by broad region, December 2020
      • Figure 71: Italy: engagement in online grocery shopping, by presence of parents’ children in the household, December 2020
    • How they receive their online grocery orders
      • Figure 72: Italy: delivery/collection options for online grocery orders, December 2020
      • Figure 73: Italy: delivery/collection options for online grocery orders, by gender, December 2020
      • Figure 74: Italy: delivery/collection options for online grocery orders, by presence of parents’ children in the household, December 2020
    • Retailers shopped with
      • Figure 75: Italy: retailers used to shop for groceries online, December 2020
      • Figure 76: Italy: retailers used to shop for groceries online, by gender, December 2020
      • Figure 77: Italy: retailers used to shop for groceries online, by age, December 2020
      • Figure 78: Italy: retailers used to shop for groceries online, by net monthly household income, December 2020
      • Figure 79: Italy: retailers used to shop for groceries online, by retailers used to shop for groceries online, December 2020
    • Reasons for not shopping online for groceries
      • Figure 80: Italy: reasons for not shopping online for groceries, December 2020
      • Figure 81: Italy: reasons for not shopping online for groceries, by age, December 2020
      • Figure 82: Italy reasons for not shopping online for groceries, by net monthly household income, December 2020
      • Figure 83: Italy reasons for not shopping online for groceries, by type of non-online grocery shopper, December 2020
    • Appendix – Data sources and abbreviations
    • Abbreviations
    • Data sources
  6. Spain

    • Overview
    • Key issues covered in this Report
    • Areas covered in this Report
    • Consumer research
    • Executive summary
    • The market
    • Market size
      • Figure 84: Spain: online grocery retailing market size, 2019-20
    • COVID-19 impacts economic growth
    • Financial insecurity for many consumers
    • The population is ageing
    • Smartphone ownership and usage is high
    • Companies and brands
    • Leading players
    • Amazon Fresh launch increases competition
    • The consumer
    • Engagement in online grocery shopping
      • Figure 85: Spain: engagement in online grocery shopping, December 2020
    • How they receive their online grocery orders
      • Figure 86: Spain: delivery/collection options for online grocery orders, December 2020
    • Retailers shopped with
      • Figure 87: Spain: retailers used to shop for groceries online, December 2020
    • Reasons for not shopping online for groceries
      • Figure 88: Spain: reasons for not shopping online for groceries, December 2020
    • Issues and insights
    • Economic hardship in COVID’s wake means online grocery must be affordable
    • Ageing population – A new opportunity
    • The market – Key takeaways
    • Significant growth opportunity for online grocery
    • Back into recession
    • Smartphone ownership and usage is high
    • Localism getting high on the agenda
    • Market drivers
    • Economic overview
      • Figure 89 Spain: changes to consumers’ financial situation as a result of the COVD-19 outbreak, selected dates, 2020/21
    • Population size and structure
    • Old age dependency ratio is on the rise
      • Figure 90: Spain: population size and age structure, 2019-30
    • Inflation
      • Figure 91: Spain: inflation, year-on-year change in food and non-alcoholic beverage and alcoholic beverages and tobacco prices, January 2019-December 2020
    • Online participation
    • Devices
      • Figure 92: Spain: device ownership, July 2020
    • Internet access
      • Figure 93: Spain: internet access methods, July 2020
    • Online shopping
      • Figure 94: Spain: devices used to shop online in the past three months, July 2020
    • Shifts in consumer spending, lifestyles and behaviour since COVID-19
      • Figure 95: Spain: post-COVID food and drink aspirations, July 2020
      • Figure 96: Spain: post-COVID food and drink aspirations – Shop online for groceries more often, by age, July 2020
    • Quality comes first
      • Figure 97: Spain: important qualities in food/drink post-COVID, July 2020
    • Desire to buy locally grown goods
      • Figure 98: Spain: Food Tracker: frequency of food behaviours – Try to buy locally grown food, July 2020
    • Choosing ethical foods
      • Figure 99: Spain: Food Tracker: frequency of food behaviours – Choose ethical foods (eg organic, fairtrade, free-range), July 2020
    • Market size
      • Figure 100: Spain: estimated online grocery retailing sales, 2019-20
    • Companies and brands – Key takeaways
    • COVID-19 online demand overwhelms grocers…
    • …but acts as a wake-up call
    • Amazon Fresh launch increases competition
    • Leading players
      • Figure 101: Spain: leading online grocery retailers, estimated sales, 2016-19
    • Google search interest
      • Figure 102: Spain: search interest on Google, selected grocery retailers in food & drink category, 12 months, March 2020-February 2021
    • Competitive strategies
    • Store-based grocers
    • Mercadona
    • Carrefour
    • Eroski
    • Dia
    • El Corte Inglés
    • Caprabo
    • Condis
    • Online-only companies
    • Amazon
    • Other online-only supermarkets
    • The consumer – Key takeaways
    • Engagement in online grocery shopping
    • Delivery and click-and-collect ride on convenience
    • Carrefour used most for online grocery shopping
    • Freshness: the biggest concern when ordering online
    • High delivery charges offputting
    • Engagement in online grocery shopping
      • Figure 103: Spain: engagement in online grocery shopping, December 2020
    • Demographics of online grocery shoppers
      • Figure 104: Spain: engagement in online grocery shopping vs age of children under 22 in household, December 2020
    • How they receive online grocery orders
      • Figure 105: Spain: delivery/collection options for online grocery orders, December 2020
      • Figure 106: Spain: delivery/collection options for online grocery orders by gender, December 2020
      • Figure 107: Spain: delivery/collection options for online grocery orders vs age of children under 22 in household, December 2020
    • Retailers shopped with
      • Figure 108: Spain: retailers used to shop for groceries online, December 2020
      • Figure 109: Spain: retailers used to shop for groceries online by demographics, December 2020
    • Retailers used by engagement in online grocery shopping
      • Figure 110: Spain: retailers used to shop for groceries online Vs engagement in online grocery shopping, December 2020
      • Figure 111: Spain: retailers used to shop for groceries online, December 2020
    • Reasons for not shopping online for groceries
      • Figure 112: Spain: reasons for not shopping online for groceries, December 2020
      • Figure 113: Spain: reasons for not shopping online for groceries, December 2020
      • Figure 114: Spain: reasons for not shopping online for groceries by demographics, December 2020
    • Appendix – Data sources and abbreviations
    • Abbreviations
    • Data sources
  7. UK

    • Overview
    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
    • Executive summary
    • Impact of COVID-19 on online grocery retailing
      • Figure 115: Short, medium and long- term impact of COVID-19 on online grocery retail, 24 March 2021
    • The market
    • Market size and forecast: online grocery sales grow by 75.2% in 2020…
      • Figure 116: All online grocery retail sales, 2015-25 (prepared on 15 March 2021)
    • …driven by record weekly sales and basket sizes
      • Figure 117: Store-based online grocery retail sales, average weekly sales, January 2019-January 2021
    • Store-based players react more quickly to heightened demand in the market
      • Figure 118: Split of all online grocery sales, by type of retailer, 2015-25
    • Circumstances lay the groundwork for diversification in the makeup of the channel
      • Figure 119: Estimated composition of the online grocery sector by type of service, 2018-20
    • The pandemic will leave the market forever inflated
      • Figure 120: All online grocery sales as a proportion of all grocery retail sales, pre- and post-COVID-19, 2015-25
    • Leading retailers
    • Major store-based players more easily capitalise on heightened demand
      • Figure 121: Leading online grocery retailers’ estimated market shares (excluding VAT), 2020
    • Pandemic also gives smaller players a chance to shine
      • Figure 122: Alternative online food and drink retailers/services used since the COVID-19 pandemic began, December 2020
    • However, disruption to services as a result of the pandemic has impacted some perceptions
      • Figure 123: Key metrics for selected brands, November 2020
    • The consumer
    • A record 59% of consumers shop online for groceries
      • Figure 124: Use of online grocery services, December 2020
    • Demand driven by both new and existing users
      • Figure 125: Changes in online grocery use since the COVID-19 pandemic began, December 2020
    • All demographics see an uptick, but it is most stark in groups with traditionally lower engagement in the channel
      • Figure 126: Any use of online grocery services, by age, 2019-20
    • Much of this uptick has been circumstantial…
      • Figure 127: Drivers of online grocery use since COVID-19, December 2020
    • …however, a majority will remain in the channel
      • Figure 128: Online grocery usage intentions post-pandemic, December 2020
    • Home delivery remains key, but new modes of fulfilment show strong engagement
      • Figure 129: How groceries are typically received, December 2020
    • Conditions of the pandemic serve to limit further growth in smartphone shopping
      • Figure 130: Devices used to shop online for groceries, December 2018-20
    • A third of online grocery shoppers have shopped most often with Tesco since the pandemic began
      • Figure 131: Online grocery retailers used and used most often since the pandemic began, December 2020
    • Overall satisfaction levels are high, but work is needed on recommendations, substitutions and click-and-collect
      • Figure 132: Satisfaction with the shopping experience of the retailer used most often since the COVID-19 outbreak began, December 2020
    • Key underlying trends remain in the market
      • Figure 133: Attitudes towards online grocery services, December 2020
    • Issues and insights
    • The impact of COVID-19 on traditional online grocery services
    • The diversification of the online grocery market
    • The market – Key takeaways
    • Concern combined with lower levels of movement drive record sales
    • All online grocery sales grow by 75.2% in 2020
    • The groundwork for diversification has been laid in 2020
    • Market drivers
    • Confidence nosedives as pandemic hits
      • Figure 134: The Financial Confidence Index, January 2016-March 2021
    • The pandemic has caused a schism in finances
      • Figure 135: Changes in current financial situation, March 2020
    • Online grocery sales accelerate during COVID-19 pandemic
      • Figure 136: Annual % change in all grocery retail sales and store-based online grocery retail sales, January 2019-January 2021
    • Online share of retail sales reach record proportions during COVID-19 lockdowns
      • Figure 137: Share of all grocery retail sales accounted for by store-based online grocery retail sales, January 2019-January 2021
    • Bigger orders drive online grocery average weekly sales
      • Figure 138: Store-based online grocery retail sales, average weekly sales, January 2019-January 2021
    • COVID-19 crisis drives down food prices
      • Figure 139: Inflation, year-on-year change in food and non-alcoholic beverage and alcoholic beverages and tobacco prices, January 2019-January 2021
    • Online shopping solutions to better suit the influx of older online shoppers’
      • Figure 140: Population size and age structure, 2015-25
    • Market size and forecast
    • COVID-19 drives rapid growth within the online grocery market
      • Figure 141: Short, medium and long-term impact of COVID-19 on online grocery retail, 24 March 2021
    • Sales in the online channel near double in 2020…
      • Figure 142: All online grocery retail sales, 2015-25 (prepared on 15 March 2021)
    • …which will naturally lead to a necessary rebalancing in the short term…
      • Figure 143: Total online grocery retail sales (including VAT), 2015-25 (prepared on 15 March 2021)
    • …however the pandemic will lead to a greater role for online in the grocery sector moving forward
      • Figure 144: All online grocery sales as proportion of all grocery retail sales, pre- and post-COVID-19, 2021
    • Market drivers and assumptions
      • Figure 145: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 5 March 2021)
    • Learnings from the last recession
      • Figure 146: Composition of online grocery shoppers, by household income, 2012-20
    • Forecast methodology
    • Market segmentation
    • Store-based players take share in the enlarged online grocery market
      • Figure 147: Split of all online grocery sales, by type of retailer, 2015-25
    • Conditions favour store-based players
      • Figure 148: Online grocery sales by store-based grocery retailers (inc: VAT), 2015-25
      • Figure 149: Online grocery sales by store-based grocery retailers (inc: VAT), 2015-25
    • Online-only players hamstrung by model in 2020
      • Figure 150: Online grocery sales by online-only retailers (including VAT), 2015-25
      • Figure 151: Online grocery sales by online-only retailers (including VAT), at current and constant prices, 2015-25
    • Diversification of mission and service will bring change market composition
      • Figure 152: Estimated composition of the online grocery sector by type of service, 2018-20
    • The consumer – Key takeaways
    • Concern combined with convenience drive record engagement in online grocery
    • The vast majority of current users will remain in the channel
    • New necessary modes of fulfilment will bring new missions into the market
    • Impact of COVID-19 on consumer behaviour
    • COVID-19 impacts all aspects of behaviour in a very different 2020
    • Vaccine rollout having a material impact on concern levels
      • Figure 153: COVID-19 Tracker: concern regarding exposure to COVID-19 and the impact of the pandemic on lifestyles, February 2020-March 2021
    • High levels of concern push customers online and away from stores
      • Figure 154: COVID-19 Tracker: impact of the pandemic on in-store and online behaviour, April 2020-March 2021
    • Stockpiling behaviours ease, but do indicate a level of ‘preparedness’ moving forward
      • Figure 155: COVID-19 Tracker: impact on availability and stockpiling behaviours, April 2020-March 2021
    • Concerns around the environment have not gone away
      • Figure 156: COVID-19 Tracker: shifts in priority due to COVID-19, 4-12 February 2021
    • Hygiene concerns with orders have been heightened by the pandemic
      • Figure 157: Attitudes towards the impact of COVID-19 on delivery and collection, August 2020
    • Lower levels of concern could see a quicker snap-back following the second national lockdown
      • Figure 158: COVID-19 Tracker: activities looked forward to once lockdown end, May 2020 and February 2021
    • Online grocery use and the impact of COVID-19
    • Number using online grocery services grows
      • Figure 159: Use of online grocery services, December 2020
    • Growth driven by newer entrants…
      • Figure 160: Changes in online grocery use since the COVID-19 pandemic began, December 2020
    • …and existing users relying on online more
      • Figure 161: Types of online grocery users as a proportion of all online grocery users, December 2018-20
      • Figure 162: Use of online grocery services, December 2018-20
    • For a small minority the pandemic has caused them to move away from online grocery
      • Figure 163: Reasons for reducing use of online grocery shopping since the COVID-19 outbreak began, December 2020
    • Demographics of online grocery shoppers
    • A year of significant shifts in the online grocery market
    • Dramatic shift in older shoppers using online grocery services
      • Figure 164: Any use of online grocery services, by age, 2019-20
      • Figure 165: Usage of online grocery services, by age, 2019-20
    • Families still crucial, but uptick in smaller households can alter the market
      • Figure 166: Usage of online grocery services, by parental status, 2019-20
    • Significant growth in the number of lower-income households using online grocery services
      • Figure 167: Any use of online grocery services, by household income, 2019-20
      • Figure 168: Usage of online grocery services, by household income, 2019-20
    • Gap between urban and rural usage narrows
      • Figure 169: Any use of online grocery services, by type of area/region lived in, 2019-20
    • Drivers of online grocery use during the pandemic
    • Unique conditions of the pandemic drive online grocery use…
      • Figure 170: Drivers of online grocery use since COVID-19, December 2020
    • …however more time at home could drive longer-term growth
      • Figure 171: Drivers of online grocery use since COVID-19, by changes in use of online grocery services, December 2020
    • Intentions post-pandemic
    • Overall only 5% of online grocery shoppers plan to step away from online services
      • Figure 172: Online grocery usage intentions post-pandemic, December 2020
    • Older shoppers more likely to walk away
      • Figure 173: Online grocery usage intentions post-pandemic, demographic breakdown of those who plan to stop shopping online for groceries, December 2020
    • A quarter of first time users will transition to doing all/most of their shopping online…
      • Figure 174: Online grocery usage intentions post-pandemic, by changes in online grocery use since the pandemic began, December 2020
    • …while nearly two thirds of high value online shoppers will continue their behaviour
      • Figure 175: Online grocery usage intentions post-pandemic, by changes in online grocery use since the pandemic began, December 2020
    • Devices used to shop for groceries online
    • Less movement limits growth in smartphone penetration
      • Figure 176: Devices used to shop online for groceries, December 2018-20
    • Younger shoppers still skew toward mobile, but 2020 has seen some move away
      • Figure 177: Devices used to shop online for groceries, December 2018-20
    • How groceries are delivered
    • Home delivery the most popular fulfilment method
      • Figure 178: How groceries are typically received, December 2020
    • Use of third-party courier aligns with wider trends in that market
      • Figure 179: How groceries are typically received, by age, December 2020
    • Those most reliant on online grocery have a broader repertoire of services
      • Figure 180: How groceries are typically received, by level of online grocery shopping done, December 2020
      • Figure 181: Repertoire of ways online grocery orders are typically received, December 2020
    • Leading grocery retailers used
    • Tesco the most popular retailer to shop with online
      • Figure 182: Online grocery retailers used and used most often since the pandemic began, December 2020
      • Figure 183: Online grocery retailers used, by online grocery shopped with most often since the COVID-19 pandemic began, December 2020
    • COVID-19 forces switching behaviour, opening up retailers to new audiences
      • Figure 184: Forced changes in retailer usage due to lack of delivery slots, December 2020
    • Iceland one of the few to gain proportion of shoppers in the enlarged market
      • Figure 185: Online grocery retailers shopped with, December 2018-20
      • Figure 186: Online grocery retailers used, by those who shopped online for groceries for the first time due to COVID-19
    • Tesco taps into value and Asda into the older demographic
      • Figure 187: Demographic profile of online grocery retailers used, by age and household income, December 2020
    • Alternative retailers used
    • One in ten consumers have used HelloFresh since the pandemic began
      • Figure 188: Alternative online food and drink retailers/services used since the COVID-19 pandemic began, December 2020
    • Alternative platforms speak to a young and affluent audience
      • Figure 189: Demographic profile of alternative retailers used, by average age and average household income, December 2020
    • Satisfaction with buying groceries online
    • Overall satisfaction levels are high…
      • Figure 190: Satisfaction with the shopping experience of the retailer used most often since the COVID-19 outbreak began, December 2020
    • …however delivery slots and substitutions need to be addressed
      • Figure 191: Key drivers of overall satisfaction with online grocery retailers, December 2020
      • Figure 192: Impact of the lack of delivery slots on retailer perceptions, December 2020
    • Sainsbury’s performs strongly, while Asda leads on collection
      • Figure 193: Satisfaction with the shopping experience of the retailer used most often since the COVID-19 outbreak began, by leading retailers, December 2020
    • Methodology
    • Attitudes towards sustainability and convenience
    • Significant interest in convenient solutions to sustainability concerns
      • Figure 194: Interest in sustainability initiatives, December 2020
    • Saved lists key for frequency of shop, scheduling a logical extension of this
      • Figure 195: Convenience related behaviours of online grocery shoppers, December 2020
      • Figure 196: Convenience related behaviours of online grocery shoppers, December 2020
    • Leading retailers – Key takeaways
    • Rapid growth in demand drives record revenues for leading players
    • Lack of delivery slots hit brand perceptions
    • Rush of old and new delivery partners to fill gaps in logistical capabilities
    • Leading retailers and market share
    • Major store-based players more easily capitalise on heightened demand
      • Figure 197: Leading online grocery retailers’ estimated market shares (excluding VAT), 2020
      • Figure 198: Leading online grocery retailers, estimated market shares, 2018-20
    • Leading players: revenues
      • Figure 199: Leading retailers’ net online grocery revenues, 2018-20
    • Leading players: revenue breakdown
      • Figure 200: Leading online grocery retailers’ estimated total online revenues, by grocery and non-grocery, 2018-20
    • Smaller players: market share and revenue
      • Figure 201: Smaller online food and drink retailers, estimated and market shares, 2018-20
      • Figure 202: Smaller online food and drink retailers, turnover, 2018-20
    • Brand research
    • What you need to know
    • Brand map
      • Figure 203: Attitudes towards and usage of selected brands, November 2020
    • Key brand metrics
      • Figure 204: Key metrics for selected brands, November 2020
    • Brand attitudes: Amazon innovative and provides a great online service
      • Figure 205: Attitudes, by brand, November 2020
    • Brand personality: extensive store presence enhances Asda and Tesco’s accessibility, upmarket grocer Waitrose exclusive
      • Figure 206: Brand personality – Macro image, November 2020
    • Morrisons welcoming, Iceland basic
      • Figure 207: Brand personality – Micro image, November 2020
    • Brand analysis
    • Amazon near universal brand awareness and highest brand usage
      • Figure 208: User profile of Amazon, November 2020
    • Tesco trusted, reliable, accessible and offers good value
      • Figure 209: User profile of Tesco, November 2020
    • Sainsbury’s pricier than its nearest rivals, but more ethically minded
      • Figure 210: User profile of Sainsbury’s, November 2020
    • Morrisons lacks innovation and cutting edge appeal and has the lowest lifetime usage of the Big Four grocers
      • Figure 211: User profile of Morrisons, November 2020
    • Asda basic, but good value for money and accessible
      • Figure 212: User profile of Asda, November 2020
    • Iceland inexpensive, but somewhat untrustworthy
      • Figure 213: User profile of Iceland, November 2020
    • Waitrose & Partners expensive and exclusive, but does not provide a great online service
      • Figure 214: User profile of Waitrose & Partners, November 2020
    • Ocado lowest brand usage and least recommended by those who have used it
      • Figure 215: User profile of Ocado, November 2020
    • Launch activity and innovation
    • Leading courier foodservice delivery firms pivot toward grocery due to COVID-19
      • Figure 216: Co-op Deliveroo in-store activation, December 2020
    • Existing couriers joined by a host of new entrants
    • Centralised distribution in the local area, the future?
      • Figure 217: Getir, IMAX Waterloo advertisement, March 2021
      • Figure 218: Gorillas order fulfilment in-centre, March 2021
      • Figure 219: Weezy advertisement, London March 2021
    • Autonomous robot and drone home grocery deliveries
    • Eco-friendlier online grocery deliveries
    • Zero-waste online grocer
    • Making greener choices easier for online grocery shoppers
    • 100% vegan online supermarket
    • Advertising and marketing activity
    • Near-53% year-on-year fall in total sector advertising spend in 2020
      • Figure 220: UK online supermarket/grocer/food retailers’ total recorded above-the-line, online display and direct mail advertising expenditure, 2016-20
    • Online-only Ocado is the sector’s biggest advertising spender
      • Figure 221: Leading UK online supermarket/grocer/food retailers’ total recorded above-the-line, online display and direct mail advertising expenditure, 2016-20
    • A third of advertising expenditure channelled through door drops
      • Figure 222: UK online supermarket/grocer/food retailers’ total recorded above-the-line, online display and direct mail advertising expenditure, by media type, 2019-20
    • Leading advertisers favour different media types
      • Figure 223: Leading UK online supermarket/grocer/food retailers’ total recorded above-the-line, online display and direct mail advertising expenditure, by media type, 2020
    • Nielsen Ad Intel coverage
    • Appendix – Data sources, abbreviations and supporting information
    • Data sources
    • Financial definitions
    • Abbreviations
    • Consumer research methodology
    • Appendix – Market size and forecast
    • Forecast methodology
    • Appendix – Key driver analysis
    • Interpretation of results
      • Figure 224: Overall satisfaction with online grocery retailers – Key driver output, December 2020
      • Figure 225: Satisfaction with online grocery retailers – Key driver output, December 2020

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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