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Online grocery sector set to increase by 123% in the next five years

Published:  22 November, 2013

Online grocery sales are set to grow by a staggering 123% to be worth £14.6 billion by 2018, according to the Institute of Grocery Distribution.

It will make it by far the fastest growing channel in the UK food and grocery industry as it sees huge growth from its current market value of £6.5bn.

The overall grocery market is set to grow by 21.3% over the same period, said the IGD.

It pointed to its recent ShopperVista research that revealed:

·         26% of British grocery shoppers have shopped online for their food and groceries in the last month (up from 20% three years ago). The highest level to date.

·         11% of British grocery shoppers say shopping online was the main way to buy their groceries against 7% of shoppers three years ago. Also the level to date.

·         12% of all British shoppers say they will do more online food and grocery shopping in the coming year.

·         31% of online grocery shoppers say they've recently shopped online using a smartphone or tablet for their food and groceries.

·         81% of online grocery shoppers say product quality is one of the top reasons for choosing which online grocery retailer to use, just behind delivery and available delivery slots.


Value (£bn)

Year to April 2013

Value (£bn)

Year to April 2018

Change in value £bn

2013 to 2018

Change in value %

2013 to 2018

Food discounters*9.518.69.196.3
Superstores and hypermarkets (over 25,000 sq ft)

Small supermarkets

(3,000 to 25,000 sq ft)

Other retailers**9.29.0-0.2-1.7