Market

Online grocery poised for growth in UK

10:34 SGT June 12, 2017
Online
Market research company IGD is forecasting online to be the fastest-growing part of the UK grocery market over the next five years.

More than four in 10 (42% of) grocery shoppers in the UK could potentially be converted to online shopping, according to recent research from IGD — offering huge opportunities for growth in this fast-evolving market.

IGD is forecasting online to be the fastest-growing part of the UK grocery market over the next five years, almost doubling in value from £8.9 billion (US12.8 billion) in April 2015 to £17.2 billion by April 2020. In recent years, there has been significant growth in the number of shoppers using the online grocery channel, with a quarter (26%) now saying they have shopped online for groceries in the past month versus a fifth (22%) in 2010.
According to IGD ShopperVista data:

> 42% of all grocery shoppers in the UK have indicated that they would consider converting to online shopping;

> 26% already class themselves as regular users of online grocery, while 11% of all shoppers say it is where they do most of their shopping; and

> 33% of shoppers deem themselves lapsed online grocery shoppers. Nearly half (47%) of that group have not shopped online in the last year and 28% have not done so in the past two years.

Ben Miller, director of Retail Insight at IGD, said: “Online is still on a rapid growth curve, as people make the most of new devices, lower delivery charges and minimum spends, plus greater access to click-and-collect points.

Those shoppers who have lapsed from online — or never tried it in the first place — told us that lower delivery charges, better selection of quality products and more accuracy on ordering could encourage them to make the switch. With the rapid improvements we have seen in online grocery over the past two years, there is every reason to believe that many shoppers would really enjoy today’s online grocery experience.