A new report surveying the online grocery market predicts a massive surge in online grocery sales in China.
Online grocery sales in the United States and the United Kingdom will also increase over the next few years, according to the report from IGD, but the biggest growth will be in China.
China’s online grocery market will grow by 286 percent by 2022, and account for 11 percent of the total grocery market in the country, according to the report from the Hertfordshire, United Kingdom-based research and training charity.
“South Korea, China, and Japan are the leaders in ecommerce in Asia. Ecommerce and social media giants are driving the development with their vast ecosystems,” IGD Asia Program Director Shirley Zu said in the report. “As they expand beyond borders, we expect to see fast growth in other Asian countries.”
The seafood e-commerce growth has already been significant in China, where Alibaba and its rivals, including JD.com and Yihaodian continue to expand their seafood offerings.
However, the United States is not far behind in terms of online grocery growth. The U.S. online grocery market will spike by 129 percent by 2022, IGD predicts, and will account for two percent of the total US grocery market.
“On-demand delivery platforms such as Instacart and Shipt have a major role in the channel, enabling several retailers to scale up quickly. Home delivery has become a growing focus as retailers aim to provide consumers with more convenient options,” IGD Canada Program Director Steward Samuel said in the report.
For example, Walmart, America’s largest retailer, recently partnered with Postmates to expand the retailer’s Online Grocery Delivery option to more than 40 percent of U.S. households.
On a smaller, but notable, scale, IGD expects the U.K. grocery market to grow by 48 percent by 2022, to make up 7.5 percent of the total grocery market in the country.
“[The] U.K., France and the Netherlands remain the centers of innovation in Europe, and we’re seeing developments in personalization, rapid delivery, and voice ordering. Retailers are executing omnichannel strategies and creating a frictionless online and offline shopping experience,” Simon Maynew, IGD’s online retail insight manager, said.
In the report, IGD predicts that the online grocery store of the future will be much more high-tech and personalized. Shoppers will subscribe to have their favorite products delivered regularly.
“Artificial intelligence will predict when you may run out and make or suggest a reorder,” IGD wrote.
Online stores will also provide product and meal recommendations, and shoppers will be supported with personalized meal planners.
Photo courtesy of Alibaba
