Coronavirus brings new audience to online groceries space

The UK online grocery market will grow by 33% in 2020, reaching an estimated value of £16.8 billion, up from £12.7 billion in 2019, according to Mintel.

This follows four consecutive years of slowing growth: in 2019 it fell to a historic low of just 2.9%. The market is set to be worth £17.9 billion by 2024.

There has been a dramatic change in online shopping habits during the Covid-19 lockdown period, habits that Mintel believes could prove lasting. It surveyed 1,000 Brits and found that, in the very early days of the spread of the coronavirus, before social distancing measures were announced, 7% increased the total amount of online shopping (both food and non-food).

In the space of fewer than two months, the e-commerce space has seen a dramatic boost with the number of consumers who say they’ve increased their online shopping rising to 36%. Meanwhile, 50% of Brits have tried to limit the time they spend in-store, while a further 9% have used Click and Collect services more.

Nick Carroll, Associate Director of Retail Research at Mintel, says: “Over the course of just a few months, Covid-19 has had a seismic impact on Britain’s grocery sector. The pandemic is giving a significant short-term boost to online grocery services, as shoppers look to avoid stores and limit their contact with the outside world. However, the impact will last beyond the crisis.”

“Shopper numbers in the online grocery market have plateaued in recent years as retailers struggled to get new customers to try these services. The outbreak is bringing a new audience to online grocery, and this should boost the market long term with strong growth forecast through to 2024.”

“While there is currently a significant disruption to the online grocery market, with some retailers not accepting new customers, this will ease in the short-term as more capacity is brought online,” he concludes.