14% Of UK Consumers Now Do All Of Their Grocery Shopping Online

14th June 2017

New research from Mintel highlights the continued growth in the UK online grocery market with sales forecast to increase 12% this year to £11.1bn.  The proportion of households who do all their grocery shopping online has also doubled since 2014.

The research confirms that value of virtual shopping baskets is growing at a far a faster rate than physical ones with sales in the online grocery market rising by an estimated 15% during 2016, while total food retail sales grew by just 1.5%.

The growth in the market comes as an increasing number of shoppers are choosing to forgo their trip to the supermarket. Almost one in three (29%) online shoppers say that in the past 12 months they have done more of their grocery shopping on the web.

What’s more, the proportion of consumers who say they do all of their grocery shopping online has doubled in recent years. As many as 14% of people currently do all of their grocery shopping online, up from 7% in 2014. Meanwhile, the proportion claiming to do most of their grocery shopping online has risen to 13%, up from 10% in 2014. Overall, 48% of consumers do at least some of their grocery shopping online, up from 43% who said the same in 2014.

 Online grocery is the quickest growing grocery channel. Nick Carroll, Senior Retail Analyst at Mintel

Once seen as simply a service to replicate the needs of a supermarket shop online, a number of new services came to market in 2016 that have the potential to elevate online grocery beyond this barrier and adequately serve the more fluid and frequent shopping behaviours seen in the wider market. Growth is being driven by encouraging users who have done most or some of their shopping online to do more. This suggests that it’s just as crucial for online grocery retailers to engage as much with their current consumer base as it is for them to attract new shoppers to drive sales.

Once seen as simply a service to replicate the needs of a supermarket shop online, a number of new services came to market in 2016 that have the potential to elevate online grocery beyond this barrier and adequately serve the more fluid and frequent shopping behaviours seen in the wider market. Growth is being driven by encouraging users who have done most or some of their shopping online to do more. This suggests that it’s just as crucial for online grocery retailers to engage as much with their current consumer base as it is for them to attract new shoppers to drive sales.”

While the online grocery market has experienced rapid growth in recent years, it remains a small part of the wider market, accounting for an estimated 6% of all grocery retail sales in 2016. However, it is poised for strong growth over the next few years, forecast to reach £16.7bn in 2021, accounting for a 9% share of the total grocery market.

Key to this growth and showing the longevity of the market, Mintel’s research finds that younger consumers are the most likely to do their grocery shopping online. Almost two thirds (62%) of consumers aged 25-34 are current grocery shoppers, as well as 57% aged 35-44 and 56% aged 16-24. What’s more, almost a quarter of (23%) of consumers aged 25-34 currently do all of their grocery shopping online, as do 20% aged 35-44 and 16% aged 16-24.

In comparison, just one in three (32%) consumers aged 55 and over are current online grocery shoppers, while approaching half (47%) of this group say they have never bought groceries online and have no interest in doing so.

Carroll commented: “The fact that younger consumers are far more likely to shop online highlights that rising smartphone ownership and internet connectivity has created an expectation from consumers that they can get what they want, whenever they want it. A younger online grocery shopping consumer base means it is crucial that grocery retailers have a well thought-out desktop and mobile site to best interact with the core online grocery consumer base.”