Online Grocery Market To See 23% CAGR Between Now And 2030
The online grocery market is set to soar at a rate of 23% year-on-year between now and 2030, a new report by Future Market Insights has found.
The COVID-19 pandemic has brought this channel 'to the mainstream', the report said, with an increasingly diverse range of customers adopting online shopping as part of their routine.
Driving Further Adoption
Many retailers have optimised their online channels as a result, which is likely to cultivate further adoption of online in the years to come.
Among the factors that are set to boost the adoption of online grocery in the coming years is the rise of a more 'personalised' shopping experience, as well as online subscriptions to particular grocery retailers, the study found.
East Asia is likely to see the highest take-up of online shopping in the period, due to the high percentage of Millennial customers in this region, however growth is expected to be a truly global phenomenon.
In the US, where online grocery shopping is one of the fastest growing channels, many established online retailers are teaming up with small to medium service providers to assist them with doorstep delivery services, as well as introduce smart packaging solutions and other solutions to boost the shopping experience.
According to the report, the COVID-19 outbreak has 'ushered in a new era' for online shopping.
'The unprecedented spread of the virus brought about several changes in consumer behaviour,' it said. 'There is at least one spending shift that is bound to stick around even after coronavirus passes: buying grocery online.
'Stay-at-home orders have affected just over 300 million Americans, changing their retail habits forever. In the wake of COVID-19 pandemic, daily e-commerce sales nearly doubled between March and April.'
Ready For The Challenge
Among the retailers to benefit from this shift have been Target and Walmart, which have been able to hold themselves up against the impact of coronavirus due to the burgeoning strength of their online platforms – both retailers have invested heavily in e-commerce in recent years to offset the challenge of Amazon.
For example, Walmart. has entered into a strategic partnership with a number of third-party delivery providers, including Point Pickup, Skipcart, AxleHire, and Roadie, to help the company provide on-time delivery to its customers.
'This robust uptake of online grocery shopping among consumers is not a phrase rather experts believe this could might as well be a reflection of permanent change in consumer behaviour,' the report said.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.