Online shopping is the fastest-growing part of the grocery market, and is set to more than double in value in the next five years, according to research by IGD.
Between 2013 and 2018, the online grocery market will grow 123.7 per cent to £14.6bn, the organisation predicted. Discounters and convenience retailing are also set to grow rapidly, at 96.3 per cent and 29.8 per cent respectively.
“The ‘hot three’ areas of online, convenience and food discounters are the ones to watch – collectively accounting for more than £3 out of every £4 of growth in UK grocery over the next five years,” said Joanne Denney-Finch, chief executive of IGD. “Both online and convenience retailing are reaping the rewards of our changing lifestyles. With more of us owning smartphones and tablets, online grocery shopping is becoming more popular. Convenience stores are benefiting from a cultural shift towards shopping ‘little and often’. They are increasingly providing products tailored to specific locations rather than a ‘one size fits all’ approach.
“We also expect food discounters, like Aldi and Lidl, to continue to do well and build on their recent stellar performance. They have improved shopper perceptions by effectively communicating the quality and value for money of their products.”
The figures form part of IGD’s latest research, which also shows that the UK food and grocery market is set to be worth £206bn by 2018, an increase of over a fifth (21 per cent) from its current value of £170bn.
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