New research from Mintel has forecast the online grocery market to grow by 33% in 2020 to reach an estimated value of £16.8bn, up from £12.7bn in 2019.
The rise follows four consecutive years of slowing growth: in 2019 growth fell to a historic low of just 2.9%. The market is set to be worth £17.9bn by 2024, growing by 41% over the five-year period.
The research also revealed a dramatic change in online shopping habits over the Covid-19 lockdown period, habits that Mintel believes could prove lasting. In the very early days of the spread of the coronavirus in the UK, before social distancing measures were announced, 7% of Brits increased the total amount of online shopping (both food and non-food). In the space of fewer than two months, online shopping has seen a dramatic boost with the number of consumers who say they’ve increased their online shopping rising to 36%.
Meanwhile, 50% of Brits have tried to limit the time they spend in-store, while a further 9% have used click-and-collect more.
Nick Carroll, Associate Director of Retail Research at Mintel, said Covid-19 has had a “seismic” impact on Britain’s grocery sector.
“The pandemic is giving a significant short-term boost to online grocery services, as shoppers look to avoid stores and limit their contact with the outside world,” he said.
Shopper numbers in the online grocery market have plateaued in recent years. However, Carroll thinks the coronavirus-related boost will last beyond the crisis.
“The outbreak is bringing a new audience to online grocery, and this should boost the market long term with strong growth forecast through to 2024,” he said.
“While there is currently a significant disruption to the online grocery market, with some retailers not accepting new customers, this will ease in the short-term as more capacity is brought online.”
