Online grocery shopping to double to £9.9bn
Published:  11 March, 2011

The value of online grocery shopping is set to double to £9.9bn by 2015 as more manufacturers and retailers, including butchers, consider building their own e-stores.

The research by IGD, the international food and grocery analyst, found that online sales are growing at a faster rate than any other sector in the grocery market - and that sales last year soared by 21.4%.

The study also found that in 2010 the online grocery market accounted for 3.2% of total grocery spend in the UK - a figure expected to increase 5.4% by 2015.

Joanne Denney-Finch, chief executive, IGD, said: “The strong growth predicted for the online grocery channel presents an opportunity for companies of all sizes and types - retailers, manufacturers, local producers – to meet the needs of today’s multi-channel shopper. It is encouraging to see manufacturers looking to flex their business models, participate in the digital explosion and engage with consumers in different ways.

“As the market is constantly changing, it’s still difficult to predict exactly what online grocery retailing will look like in the next few years. What is exciting, however, is how the digital revolution will evolve and shape our industry in the years to come.”

More than two-fifths (43%) of manufacturers expect up to 10% of their total revenue to come from the online channel by 2015 – more than double the number (18%) currently generating this revenue level.

The research by IGD also found, unsurprisingly, that the removal of delivery charges would lead to an increase in online food shopping by consumers.

>>  Shoppers gloomy about 2011 financial prospects

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