UK Online Grocery Retail Forecast To Grow By 53.8%: IGD
The online grocery market in the UK is forecast to grow by 53.8%, to £16 billion, between 2017 and 2022, according to new figures from grocery-research organisation IGD.
The UK's food and grocery market is currently worth £184.5 billion, with online retail accounting for £10.4 billion of this, however, IGD says that the online channel is set to be the fastest-growing segment over the next five years.
Around 42% of UK grocery shoppers now use online as part of their food shopping each month, while 60% plan to shop online for groceries and have them delivered to their homes.
Those who already shop online are also doing so more frequently. Some 28% of online consumers claim to shop once a week or more online, compared with 20% in 2013.
“More shoppers are engaging with online grocery shopping than ever before," said Vanessa Henry, IGD's shopper-insight manager.
“What we call ‘omnichannel shoppers’ are having a big impact on the grocery market, with over half of shoppers claiming that they use five or more different channels every month, as well as buying from 12 different store brands on average."
According to the organisation, 40% of shoppers have combined online retail with shopping at supermarkets, hypermarkets and convenience stores in the last month.
Meanwhile, Toby Pickard, IGD's senior innovations and trends analyst, said that there is still huge potential to grow online in the future.
“The online segment is a great area to invest in, and we have seen plenty of innovative examples around the world from retailers and suppliers looking to tap into the online and digital market further," Pickard said.
"By creating new products and services, which offer personalisation, efficiency and speed, businesses are more likely to meet the dynamic and changing expectations of shoppers, and ultimately benefit from the growth opportunities the world of online grocery has to offer.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.