United Kingdom (UK) Online grocery Market Overview, 2028
British consumers have a tendency to do their grocery shopping on a weekly basis rather than making daily trips to the store. This is due to a number of factors, including busy work schedules, long commutes, and a desire for convenience. In response to this trend, many online grocery retailers in the UK offer next-day or scheduled delivery options to cater to the needs of their customers. Furthermore, one of the main advantages of online grocery shopping is the ability to purchase a large quantity of items in a single order, which is particularly attractive to consumers who prefer to shop on a weekly basis. Online retailers such as Tesco, Sainsbury's, and Asda offer a range of delivery options, including next-day delivery, same-day delivery, and delivery on a specified date and time. Moreover, many of these online grocery retailers also offer the option to ""subscribe and save"" on commonly purchased items. This allows customers to set up a regular delivery schedule for their favorite products, ensuring that they always have the items they need on hand. In addition, trust is an important cultural value in the UK, and this can be reflected in consumers' attitudes towards online grocery shopping. Many people may be hesitant to shop for groceries online, particularly for perishable items like meat and produce; because they want to be sure that they are getting high-quality products.
According to the research report ""United Kingdom Online Grocery Market Overview, 2028,"" published by Bonafide Research, the United Kingdom online grocery market is expected to add USD 21.35 Billion by 2028. Advances in technology have played a key role in the growth of the online grocery market in the UK. The rise of smartphones and tablets has made it easier than ever for consumers to shop for groceries online, while the development of sophisticated logistics and delivery networks has made it possible for retailers to offer fast and reliable delivery services. Furthermore, online grocery retailers can form partnerships and collaborations with other companies to offer value-added services such as meal planning, recipe suggestions, and nutritional information. This can help to deepen customer engagement and loyalty. Moreover, with growing concern about the environmental impact of food production and waste, there is a trend towards more sustainable packaging and delivery methods, as well as greater transparency about the source and production of food. In addition, as consumers spend more time on their mobile devices, there is a trend towards mobile-first online grocery shopping, with retailers offering optimized mobile apps and mobile-friendly websites.
Snacks and beverages are essential food and beverage items that have high demand and frequent purchase rates. Furthermore, snacks and beverages are often considered impulse purchases, which mean that consumers are more likely to add them to their cart while browsing online for other grocery items. Moreover, the online platform offers a broader range of snacks and beverages compared to traditional brick-and-mortar stores, giving consumers access to a wider selection of products and flavours. In addition, with an increasing focus on health and wellness, consumers are looking for healthier snack and beverage options, such as organic or low-sugar products. Online platforms often offer a wider range of healthy snacks and beverages compared to traditional stores, making it easier for consumers to find these products. In addition, the meat and seafood segment is projected to have the highest CAGR during the forecast period. Online platforms offer a wider range of specialized meat and seafood products, such as organic or sustainably sourced products, which are not always available in traditional brick-and-mortar stores. Furthermore, there is an increasing trend towards healthy and sustainable food choices, which is driving demand for organic, grass-fed, or free-range meat and seafood products. Online platforms offer a wider range of such products, which further drives the growth of the meat and seafood segment.
Based on delivery type, with many online grocery retailers now offering home delivery, there is intense price competition in the market. Retailers are offering discounts and promotions on products, as well as free delivery for orders over a certain value, to attract customers and encourage them to choose their service over their competitors. Furthermore, some online grocery retailers in the UK offer subscription models, allowing customers to pay a monthly or annual fee in exchange for free or discounted delivery. This can be particularly attractive to regular customers who rely on home delivery for their grocery shopping. In addition, one of the main reasons for the popularity of click and collect is its convenience. Customers can order groceries online and collect them at a time and location that suit them without having to worry about home delivery slots or waiting in line for a delivery. Furthermore, many retailers in the UK now offer click and collect from multiple locations, such as in-store pickup or collection points at train stations or car parks. This makes it easier for customers to collect their groceries on the go without having to visit a specific store.
The summer months are also a popular time for online grocery shopping in the UK, as customers stock up on food and drinks for picnics, barbecues, and outdoor events. Retailers may offer seasonal promotions and discounts during this time to attract customers. Furthermore, the back-to-school period in September is another busy time for online grocery retailers in the UK, as parents stock up on lunchbox essentials and after-school snacks. Moreover, other festive events, such as Easter and Halloween, can also drive online grocery sales in the UK. Retailers may offer seasonal products and promotions during these periods to attract customers. In addition, other festive events, such as Easter and Halloween, can also drive online grocery sales in the UK. Retailers may offer seasonal products and promotions during these periods to attract customers.
Considered in this report
• Geography: United Kingdom
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028
Aspects covered in this report
• United Kingdom Online Grocery market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Product Type
• Staples & Cooking Essentials
• Snacks & Beverages
• Breakfast & Dairy
• Fresh Produce
• Meat & Seafood
• Others
By Delivery Type
• Home Delivery
• Click and Collect
The approach of the report:This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.
Intended audienceThis report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Online Grocery industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.