FDBusiness.com

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

 Breaking News
  • Heineken Delivers Strong Top-line Growth in 2019 Global brewer Heineken achieved 5.6% organic growth in net revenue (beia) to €23.894 billion for 2019 and operating profit grew 3.9% organically to €4.020 billion. However, the operating profit margin...
  • Molson Coors Partners With e.fundamentals to Help Drive UK Online Sales Molson Coors, one of the world’s largest brewers, has partnered with ecommerce analytics provider e.fundamentals to help drive sales of its beers through retailers’ websites in the UK. E.fundamentals’ service...
  • Manor Farm Wins IFSA Best Sustainable Food Product Award 2020 Irish chicken producer Manor Farm has won the IFSA (Irish Foodservice Suppliers Alliance) Best Sustainable Food Product Award 2020. Manor Farm, received the award for the company’s ‘Farmers to Market’...
  • Heineken Announces CEO Succession Jean-François van Boxmeer (pictured left), Chairman and CEO of Heineken, is to step down following his successful 15 year leadership of the company. He will be succeeded by Dolf van...
  • DMK Group Aims to Optimise Ice Cream Production DMK Group, Germany’s largest dairy co-operative, intends to streamline the production network in its ice cream business unit. This involves selling its Waldfeucht-Haaren production site in North Rhine-Westphalia. Schwarz Produktion,...

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


Warning: count(): Parameter must be an array or an object that implements Countable in /home/fdbusiness/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5
Share

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

[eventlist]

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements