FDBusiness.com

Leading Global Online Grocery Markets to Create a $227 Billion Growth Opportunity by 2023

 Breaking News
  • FrieslandCampina Strengthens US Presence Royal FrieslandCampina, the global dairy group, has acquired US-based importer and distributor Jana Foods. The acquisition will further strengthen FrieslandCampina’s position in supplying Dutch specialty cheese to the US market. Jana Foods will be integrated in the FrieslandCampina Consumer Dairy USA business. “This acquisition supports our strategy of investing for growth. This investment is in line [...]...
  • Greencore Well Placed to Drive Future Growth in Core UK Market Greencore Group, a leading manufacturer of convenience food in the UK, has reported a 4.2% increase in revenue from continuing operations to £1.499 billion for the year ending 28 September 2018. Adjusted operating profit rose by 3.6% to £110.6 million, with improved profits in food to go categories being partly offset by a decline in [...]...
  • Strategic Partnership Sets New Industry Standard For Sourcing Cocoa Dutch impact organization Tony’s Chocolonely, retailer Albert Heijn and chocolate manufacturer Barry Callebaut have forged a strategic partnership to end child labour and modern slavery in the chocolate industry. Together the companies are setting a new industry standard that increases pressure on the wider chocolate industry to drive structural change to work towards a more [...]...
  • Global Premium Water Growing 8% a Year Global sales of premium bottled water reached US$16.5 billion at consumer prices in 2017, 48% more than five years ago, according to a new report from Zenith Global, the global food and drink experts. Consumption volume also rose strongly by 26% over the five years to 11.2 billion litres. “This 8.1% annual value growth, compared with [...]...
  • Exports Boost Europe’s Beer Production to Eight-year High Europe’s beer production rose to an eight-year high in 2017 bolstered by record exports, a rise in micro-breweries and increased low-alcohol products. According to The Brewers of Europe’s latest report on Europe’s beer sector, production increased by 2 million HL 39.6 billion litres, exports reached an all-time high, with one in five beers shipped abroad and [...]...

Leading Global Online Grocery Markets to Create a $227 Billion Growth Opportunity by 2023

Leading Global Online Grocery Markets to Create a $227 Billion Growth Opportunity by 2023
November 12
09:10 2018

Ten leading global online grocery markets are predicted to experience combined growth of $227 billion, at an annual rate of 20%, by 2023, according to new figures unveiled by IGD. As the global leader in grocery eCommerce, China will grow at a 31% CAGR over the next five years, taking market share from 3.8% to 11.2%. Over the next five years, the Chinese online grocery market will grow by the same size as the entire combined market of all ten countries in 2018.

Country Online grocery market size $bn Value growth $bn CAGR Online grocery channel share %
2018 2023 2018 2023
China $50.9 $196.3 +$145.4 31.0% 3.8% 11.2%
U.S. $23.9 $59.5 +$35.6 20.0% 1.6% 3.5%
Japan $31.9 $46.5 +$14.6 7.8% 7.1% 9.9%
U.K. $14.6 $22.1 +$7.5 8.7% 6.0% 7.9%
South Korea $9.9 $21.3 +11.4 16.5% 8.3% 14.2%
France $11.6 $17.2 +$5.6 8.2% 4.5% 6.0%
Australia $2.1 $4.2 +$2.2 15.3% 2.1% 3.7%
Germany $1.3 $3.8 +$2.5 23.2% 0.5% 1.2%
Canada $0.8 $2.1 +$1.3 21.0% 0.8% 1.8%
Spain $0.9 $2.0 +$1.1 17.9% 0.7% 1.4%
TOTAL $147.9 $374.9 $227.0 20.4%

Source: IGD research 2018

IGD also forecasts extensive growth in the US with online set to more than double its market share, driven by the rapid expansion of pick-up points, Instacart’s expansion and integration of businesses such as Shipt and Home Chef. Market share will grow to 3.5%, creating an additional $37 billion opportunity for American retailers and manufacturers.

IGD’s research shows that around the globe, online grocery market growth is being driven by the twin enablers of rapidly evolving shopper expectations and exciting tech innovations. Shopper expectations of price, quality, choice, convenience, speed, personalisation, health, information and empowerment are changing fast, and the online channel is well placed to deliver against these.

Looking at the online growth opportunity in Europe, Jon Wright, Head of Retail Insight EMEA at IGD, said: “We’re anticipating continued online growth opportunities across mature Western European markets. In the UK, France, Germany and Spain we forecast above market average growth rates for online grocery retailing, all growing market share. It provides a significant growth opportunity as retailers and manufacturers in the region invest in personalisation, ease and convenience and combining online and offline to meet a range of shopper needs.”

Commenting on online growth in Asia, IGD Asia’s Programme Director Shirley Zhu said: “China, Japan and South Korea are the Asian markets leading the way in online grocery shopping, and we’re seeing significant market share penetration in these three countries. They lead the way globally in terms of market share, and in 2023 all three will be nearing double digit share for online grocery, with South Korea over 14%.

“The acceleration of online and offline integration has been accentuated by partnerships between eCommerce players and bricks and mortar retailers. Physical retailers in China, having recognised the importance of the online and digital channel, are collaborating with eCommerce and delivery partners to offer more targeted ranges, promotions and expanding their omnichannel presence. It’s for this reason China comes out on top globally with value growth of $145.4 billion predicted by 2023.”

Addressing US online growth, IGD’s North American Programme Director Stewart Samuel said: “The US online grocery market has experienced a rapid pace of growth this year, driven by expanding services and new entrants. We’re seeing a major focus on offering same-day delivery with many companies partnering with Instacart to scale up quickly, including Aldi. Target acquired Shipt, enabling it to move its same-day delivery plans forward by about two years.

“Plated and Home Chef meal kit companies were acquired by Albertsons and Kroger respectively, enabling them to offer a multi-channel solution in the category, and we’re also seeing a strong pipeline of innovation including Walmart’s automated picking warehouse, Alphabot, Kroger’s partnership with Ocado and Albertsons’ online organic and natural foods marketplace. With all the developments in the market, and the rate at which retailers are entering the channel and expanding their offers, growth for the next five years is likely to be strong.”

For additional insights into the online channel, visit retailanalysis.igd.com

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements