Online food and grocery market to almost double by 2017
The online food and grocery market is set to almost double in value to £11.1 billion by 2017 according to new research. This represents a compound annual growth rate of 14.6% between 2012 and 2017.
The Shopper Vista study by IGD revealed that 44% of shoppers expect to use the internet to buy their groceries in the next five to ten years. In addition 58% of shoppers said technology helped them save money when doing their food and grocery shopping, while 54% said it saved time.
Of the online shoppers surveyed, 46% said they would be encouraged to buy more of their groceries using the internet if personalised promotions were emailed to them.
Joanne Denney-Finch, chief executive, IGD, said: "Although online only currently represents 3.4% of the overall UK grocery market, it is the fastest growing sector – set to grow by a phenomenal 98% over the next five years.
"Increasing smartphone and tablet use together with new fourth generation mobile technology, should boost online grocery shopping and allow shoppers to use all services retailers provide from in-store navigation to using QR codes to access recipe ideas.
"Smartphone shopping is certainly popular with young shoppers, with six out of ten under-35s saying they are already doing it or keen to do so. One way retailers are capitalising on this trend is through the development of interactive virtual shopping walls.
"Although online grocery is still in its infancy it is evolving at a blistering pace. Food companies need to view their websites as digital assets that not only sell groceries, but also add to the shopping experience through initiatives such as product reviews and ratings, or live chat with members of staff."
The IGD Shopper Vista is a monthly analysis of British grocery shopper sentiment which examines shoppers’ attitudes, motivators and barriers to food and grocery shopping.
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