Online grocery market set to grow by 33% in 2020
A new study has predicted that the online grocery market will grow by 33% in 2020 to reach £16.8 billion.
The research by Mintel has also led the company to forecast that the market is set to be worth £17.9 billion by 2024 following growth of 41% over a five-year period.
The poll of UK shoppers found that in the early days of coronavirus crisis pre-social distancing, just 7% of UK shoppers increased the amount of online shopping they did for both food and non-food. However, this has now grown to an uplift of 36% over a two-month period.
Meanwhile, 50% of shoppers said they now try to limit the time they spend in-store, while a further 9% said they have increased their use of click-and-collect services.
Nick Carroll, associate director of retail research at Mintel, said: “The pandemic is giving a significant short-term boost to online grocery services, as shoppers look to avoid stores and limit their contact with the outside world. However, the impact will last beyond the crisis. The outbreak is bringing a new audience to online grocery, and this should boost the market long term with strong growth forecast through to 2024.”
One of the biggest rises in online shopping was found to be in the over 70 age group due to the stay at home guidance given by the government. The research found that 37% of over 65s have increased the amount of online shopping they have done since the outbreak began. However, many are relying on the help of friends and family to get their shopping.
Carroll added: “While there has been a rise in online grocery shopping among the over 65s, the reality is a significant number of consumers in the older age groups have no experience shopping online for groceries and/or are not digitally native. There is a real need to ensure access to online grocery deliveries for older consumers. We’re seeing some retailers already thinking of easier ways to order goods, including phone orders for next-day delivery.”
