UK Online Grocery Retailing Market Report 2023
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Stay ahead of the curve and future-proof your business with Mintel’s UK Online Grocery Retailing Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the UK online grocery market including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.
Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.
As expected, the market has declined following the extraordinary growth driven by the COVID-19 pandemic and enforced lockdowns. However, even with this decline, the online channel remains far larger than it had been pre-pandemic. The number of consumers moving entirely away from online grocery retail was small, falling from 58% to 55%, highlighting that the sector can be resilient during the cost-of-living crisis.
The leading reasons as to why consumers use online grocery shopping are all convenience-driven, 40% of consumers use it to avoid shopping in-store, and a third find it easily fits into their schedule. Looking longer term, there is a clear opportunity for online grocery retailers to tap into subscription, particularly within frequent but less aspirational product categories such as household cleaning. With convenience a key driver of online grocery use, the ability to ‘automate’ elements of online grocery demand is a clear opportunity particularly when this is tied to value.
Spending tracking underpins value credentials
In the current climate the perception of online grocery as being less value-focused is a major barrier to attracting new consumers. Around a third of consumers believe that they can find better prices or promotions in-store. Nevertheless, a fifth of consumers use online shopping to keep better track of spending, so retailers should draw attention to spending tracking to demonstrate the value of shopping for groceries online.
This report covers major grocers’ online sales, online-only grocers’ sales, specialist food and drink retailers’ online sales, and online-based food box and recipe box delivery schemes. The leading players in the sector covered in this report include Tesco, Sainsbury’s, Asda, Ocado, Amazon Fresh, Iceland, Deliveroo, Uber Eats, Just Eat, and HelloFresh.
To learn how to connect with your audience, purchase our full UK Online Grocery Retailing Market Report 2023. Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.
This report, written by Nick Carroll, a leading analyst in the retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
As expected, sales within the online grocery channel were in consistent decline in 2022 as the market rebalanced post the peak use of the channel in 2020-21, with further declines forecast for 2023 before longer-term growth returns. Pressure on finances has added to this, with some moving away from the channel to more value-led options, and for premium elements of the online grocery sector, particularly rapid delivery, at present there is a need to simply maintain before greater opportunity for growth returns in 2024.
Nick Carroll
Category Director, Retail Insights
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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.