Key online grocery markets set for explosive growth, IGD

UK online grocery sales will grow by 48% by 2022 and account for 7.5% of the total UK grocery market, according to research by IGD and The Consumer Goods Forum.

In China, meanwhile, the online grocery market will grow by 286% over the next five years and account for 11.1% of the country’s total market. And in the US, it will increase by 129% and account for 2% of the total market. IGD predicts a shift to personal micro stores, offering individualised and online-exclusive products, personalised promotions, recommendations, advertising and loyalty schemes. 

Simon Mayhew, Online Retail Insight Manager at IGD, comments: “AI will help to unlock personalisation. The store’s layout will be dynamic and able to predict the customer’s reason for shopping. So, if you need a meal for tonight, your homepage will display only the relevant solutions. When generally browsing, you will only see the products and pack sizes likely to meet your needs. Many products will only be buyable online where there is no constraint on shelf space, and in high-value categories, there will be customisable products, so you can create your own ideal shampoo or cereal.”

Joanne Denney-Finch, Chief Executive at IGD, says: “Grocery retail is seeing an unprecedented amount of change, driven by changing shopper expectations and the ability to meet these using transformative technologies. This offers great opportunities for companies of all sizes. The winners will put the needs of their shoppers first, be prepared to act decisively, maintain the highest everyday standards and exhibit tremendous agility.”                           

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