Online grocery sales in the United Kingdom rose 9 percent in 2018, and are expected to account for 10 percent of all grocery shopping over the next five years, according to a new report from research firm Mintel. However, many shoppers are still reluctant to buy fresh food online.
Online grocery sales reached GBP 12.3 billion (USD 16 billion, EUR 14.2 billion) in 2018, the Mintel report found, and are projected to reach GBP 13.6 billion (USD 17.7 billion, EUR 15.7 billion) by the end of 2019. The online grocery sector’s share of total grocery sales rose from 6.1 percent in 2016 to 7 percent in 2018, the report noted.
Over the next five years, the online grocery sector is forecasted to account for 10 percent of all grocery shopping, with sales expected to reach GBP 19.8 billion (USD 26 billion, EUR 23 billion) in 2023, researchers predicted. However, the percentage of people shopping online for groceries dropped from 48 percent in 2015 to 45 percent in 2018, according to Mintel.
“Online grocery is, alongside the food discounters, one of the fastest-growing segments within the wider grocery sector. However, growth is slowing and the number of users is plateauing as retailers struggle to encourage new customers to try their services,” Nick Carroll, associate director of retail research for Mintel, said in a press release.
Many consumers remain reluctant to buy fresh products online – they are concerned about substitutions and are put off by delivery charges (24 percent), Carroll said. The most common reason consumers do not shop online is that they prefer to choose fresh products themselves (73 percent), Mintel found. Additionally, 18 percent of the consumers surveyed expressed concern about the minimum they needed to spend when online grocery shopping.
Thirty percent of online grocery shoppers said they would pay between GBP 1.00 (USD 1.31, EUR 1.16) and GBP 2.99 (USD 3.90, EUR 3.46) for same-day delivery and 27 percent said they would pay between GBP 3.00 (US 3.90, EUR 3.46) and GBP 4.99 (USD 6.51, EUR 5.77).
“Just 19 percent of these consumers would be willing to pay over GBP 5,00 and 24 percent say they would not be willing to pay anything for same-day delivery, highlighting the need for costs to be kept in line, where possible, should same-day delivery become mainstream,” Mintel said.
