2024
9
UK Online Grocery Retailing Market Report 2024
2024-05-03T15:02:26+01:00
REPDBF645F9_FB90_466C_BF5A_137FF6283170
2195
172803
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Report
en_GB
In a value conscious market online grocery sales were robust. With convenience rising on the agenda again much opportunity lies within the sector in the short-term. Nick Carroll, Category…

UK Online Grocery Retailing Market Report 2024

£ 2,195 (Excl.Tax)

Report Summary

Stay ahead of the curve and future-proof your business with Mintel’s UK Online Grocery Retailing Market Report 2024. Our full report is packed with consumer-led market intelligence, the latest online grocery market research, trends, and consumer behaviours affecting your business. Get a 360° view of the market, including UK online grocery market size, market share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • Provides the UK online grocery market size, including market segmentation by type of retailer
  • Leading retailer customer profiles, sales and market share.
  • Consumer use of online grocery services, length of use and reasons for use.
  • Barriers to the use of online grocery services for those who currently do not shop online for groceries.
  • Rapid delivery retailer use and missions for which services are used.
  • Attitudes towards loyalty, brand discovery and marketplaces within the online grocery retailing market.
  • Key innovations within the online grocery market in the past year.

Online Grocery Retailing Market Overview

Much of the growth the online grocery retailing market experienced in 2023 was due to inflation. A barrier remains in this value-driven market whereby some consumers believe shopping online for groceries is more expensive. However, with the sector over-indexing among high-income households, the channel was insulating from some trading away.

  • Online grocery market share UK: 13.1% of all grocery sales were online.
  • UK online grocery market size: Mintel forecasts that the online grocery retail market will grow by 3.1% in 2024.

Online Grocery Market Trends and Opportunities for Retailers

Disruption among rapid delivery

The news in April 2024 that Getir and its 2022 acquisition Gorillas are to leave the UK marked another milestone in the erratic story of post-pandemic rapid delivery within the UK. This opens opportunities for rapid expansion from leading supermarkets’ own services, as consumer engagement remains high, with a quarter of online grocery shoppers now using rapid delivery services.

  • Online grocery retailing market trends: 17% of consumers have used rapid home delivery.

Mindful of the marketplace shift

One of the great strengths of the wider online channel is the longtail or products it can offer. Online grocery has lagged behind this. However, retailers can switch up their approach and react to viral businesses and be seen as a ‘supporter’, benefitting from the brands social community growth to attract new audiences, additionally, online sales can serve as a test-bed for in-store launch.

  • Online grocery market statistics: 59% of consumers now do some online grocery shopping,

Purchase our UK Online Grocery Retailing Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities. Readers of this report may also be interested in our UK Food and Non-Food Discounters Market Report 2024, or our range of Retail Market Research.

Brands Featured in the Full Report

Tesco, Ocado, Sainsbury’s, Asda, Amazon Fresh, Iceland, Deliveroo, Uber Eats, Just Eat, and HelloFresh and many more.

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Expert Insights from a Retail Analyst

This report, written by Nick Carroll, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the online grocery market and add expert context to the numbers.

In a value conscious market online grocery sales were robust. With convenience rising on the agenda again much opportunity lies within the sector in the short-term.

Nick Carroll - Research Analyst

Nick Carroll
Category Director – Retail Insight

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the online grocery sector
    • Market dynamics and outlook
    • Graph 1: all online grocery retail sales (including VAT), market size and growth, 2018-23
    • Graph 2: online grocery sales as a proportion of all grocery sales, 2018-28
    • Graph 3: share of all online grocery retail sales, by type of retail operation, 2018-28
    • What consumers want and why
    • Graph 4: types of online grocery users as a proportion of all online grocery users, 2019-24
    • Graph 5: types of delivery methods typically used for online grocery shopping, 2024
    • Graph 6: missions typically completed via rapid online grocery services, by type of service used, 2024
    • Graph 7: leading online grocery retailers typically shopped with, 2024
    • Graph 8: alternative grocery retailers used in the past year, 2024
    • Graph 9: key components of an online grocery site, 2024
    • Graph 10: reasons for not shopping online for groceries, 2022-24
    • Retailer activity
    • Graph 11: leading online grocery retailers’ estimated market share, 2021-23
    • Graph 12: select online grocery retailers, brand awareness, 2023-24
  2. Market Dynamics

    • Market size
    • Graph 13: all online grocery retail sales (including VAT), market size and growth, 2018-23
    • Graph 14: year-on-year change in store-based online grocery retail sales, 2022-24
    • Graph 15: store-based online grocery retail sales as a percentage of total grocery retail sales, 2022-24
    • Market forecast
    • Graph 16: online grocery sales as a proportion of all grocery sales, 2018-28
    • Graph 17: all online grocery sales (including VAT), market size and growth, 2011-16
    • Market segmentation
    • Graph 18: share of all online grocery retail sales, by type of retail operation, 2018-28
    • Graph 19: estimated distribution of online grocery sales by distribution channel, 2020-23
    • Macro-economic factors
    • Graph 20: CPI (overall index), food and drink inflation rates, 2022-24
    • Graph 21: real wages growth, annual % change in wage growth vs inflation, 2018-24
    • Graph 22: “Have you been affected by any of these issues over the last two months?”, 2024
    • Graph 23: the financial wellbeing index, 2016-23
    • Graph 24: the financial confidence index, 2016-24
  3. What Consumers Want and Why

    • Use of online grocery services
    • Graph 25: types of online grocery users as a proportion of all online grocery users, 2019-24
    • Graph 26: when users first started shopping online for groceries, 2024
    • Graph 27: level of use of online grocery services, by household income, 2024
    • Graph 28: level of use of online grocery services, by household income, 2019
    • Delivery methods used
    • Graph 29: types of delivery methods typically used for online grocery shopping, 2024
    • Graph 30: online grocery delivery methods typically used, by age, 2024
    • Rapid delivery missions
    • Graph 31: use of rapid delivery specialists, 2021-24
    • Graph 32: missions typically completed via rapid online grocery services, by type of service used, 2024
    • Graph 33: attitudes towards rapid delivery services, 2024
    • Leading retailers shopped with
    • Graph 34: leading online grocery retailers typically shopped with, 2024
    • Graph 35: leading online grocery retailers shopped with, 2021-24
    • Graph 36: repertoire of online grocery retailers typically used, 2022-24
    • Graph 37: leading online grocers, customer profile by age and household income, 2024
    • Alternative retailers used
    • Graph 38: food subscription service use, 2021-24
    • Graph 39: food subscription service use, by working location, 2024
    • Graph 40: alcoholic drink specialists shopped with online, 2022-24
    • Important components of an online grocery service
    • Graph 41: key components of an online grocery site, 2024
    • Graph 42: key components of an online grocery site, by level of current online grocery use, 2024
    • Graph 43: “I spend longer browsing for products online than I do in-store”, 2024
    • Graph 44: attitudes to shopping emerging brands on online grocery services, 2024
    • Graph 45: attitudes to personalised online grocery services, 2024
    • Barriers to shopping online for groceries
    • Graph 46: reasons for not shopping online for groceries, 2022-2024
    • Graph 47: reasons for not shopping online for groceries, by previous use/interest in online grocery services, 2024
  4. Retailer Activity

    • Leading retailers: market share and key metrics
    • Graph 48: leading online grocery retailers’ estimated market share, 2021-23
    • Launch activity and innovation
    • Advertising and marketing activity
    • Graph 49: UK online supermarket/grocery/food retailers and delivery partners’ total above-the line, online display and direct mail advertising expenditure, 2019-23
    • Graph 50: leading online supermarket/grocery/food retailers and delivery partners’ total recorded above-the-line, online display and direct mail advertising expenditure, 2022-23
    • Graph 51: online supermarket/grocery/food retailers and delivery partners’ total recorded above-the-line, online display and direct mail advertising expenditure, by media type, 2022-23
  5. Brand Research

    • Graph 52: select online grocery retailers, brand awareness, 2023-24
    • Graph 53: attitudes towards and usage of leading grocery retailers, 2023-24
    • Graph 54: leading grocery retailers, experience and intention to recommend, 2023-24
    • Graph 55: attitudes to leading grocery retailers, 2023 -24
    • Graph 56: leading grocery retailers, macro brand image, 2023-24
    • Graph 57: leading grocery retailers, macro brand image, 2023-24
  6. Appendix

    • Supplementary data – advertising and marketing activity
    • Market forecast data and methodology
    • Report scope and definitions
    • Methodology

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