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UK Online Grocery Market Report by Product Type (Vegetables and Fruits, Dairy Products, Staples and Cooking Essentials, Snacks, Meat and Seafood, and Others), Business Model (Pure Marketplace, Hybrid Marketplace, and Others), Platform (Web-Based, App-Based), Purchase Type (One-Time, Subscription), and Region 2024-2032
Report Format: PDF+Excel | Report ID: SR112024A24933
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UK Online Grocery Market Overview:
The UK online grocery market size reached USD 23.58 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 31.01 Billion by 2032, exhibiting a growth rate (CAGR) of 2.70% during 2024-2032. The growing consumer demand for convenient and time saving solutions, expansion of rapid delivery services, and increasing utilization of artificial intelligence (AI), machine learning (ML), and data analytics to offer more personalized shopping experiences are some of the factors impelling the growth of the market.
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Report Attribute
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Key Statistics
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|---|---|
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Base Year
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2023
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Forecast Years
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2024-2032
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Historical Years
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2018-2023
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| Market Size in 2023 | USD 23.58 Billion |
| Market Forecast in 2032 | USD 31.01 Billion |
| Market Growth Rate 2024-2032 | 2.70% |
UK Online Grocery Market Trends:
Increased Consumer Demand for Convenient and Time-Saving Solutions
A modern UK consumer values convenience, driving the demand for online grocery services. Working families and professionals seek the efficiency of ordering groceries from the comfort of their homes and having them delivered at their convenience. This shift is further supported by the rise in smartphone dependence and internet penetration, enabling easy access to grocery platforms. According to the e-Commerce Statistics UK 2023 report by Delta Fulfilment, grocery shopping online took a firm hold, accounting for 12.3% of the revenue. This shows a shift in consumer behavior, with 55% of the population choosing the convenience of having groceries delivered to their doorstep. Major grocery chains and delivery platforms are capitalizing on this trend by expanding their online offerings. Key market players are also focussing on developing user-friendly grocery delivery apps to increase their sales. Such developments reflect the evolving expectations of customers, where speed and ease of use are paramount. As more retailers invest in logistical improvements and technological enhancements, this demand for convenience is growing in the country.
Expansion of Rapid Grocery Delivery Services
People are expecting shorter delivery windows, often within minutes or hours. This trend is encouraging companies to invest heavily in logistics, warehousing, and partnerships. The rise of platforms is revolutionizing the market, offering rapid delivery of essential groceries within a few minutes in urban areas. The demand for such services is especially strong among younger urban consumers who prioritize immediacy. Retailers have responded to this growth by launching partnerships or acquiring rapid-delivery startups. For example, in 2023, Uber Eats partnered with Getir for fast delivery of grocery in the UK. This tie up, which expanded the range of groceries on tap for Uber Eat’s users, covered other markets where the pair operated in Europe. These expansion initiatives reflect the growing competition in the grocery sector, encouraging traditional retailers to innovate.
Technological Advancements and Personalized Shopping Experiences
In recent years, retailers have invested heavily in artificial intelligence (AI), machine learning (ML), and data analytics to offer more personalized shopping experiences. Tailored product recommendations, customized promotions, and AI-powered search engines enhance the consumer's online shopping experience, leading to higher satisfaction and loyalty. Moreover, technology is streamlining logistics and inventory management. In 2024, Sainsbury’s and Microsoft signed a five year partnership to help deliver the retailers Next Level Sainsbury’s Strategy. This is aimed to provide AI in the hands of store colleagues, create more efficient and engaging stores and online shopping experiences and deliver leading customer satisfaction and returns for shareholders.
UK Online Grocery Market News:
- March 2024: Gopuff announced the extension of its services to include 24/7 deliveries as the need for late-night orders on the app increases. It plans to roll out new services in Liverpool and Newcastle.
- June 2024: Amazon started offering fresh grocery deliveries to all customers in over 100 towns and cities across the UK. As per the service available in their area, customers can select from a range of products from popular brands, retailers, local producers, and artisans.
UK Online Grocery Market Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on product type, business model, platform, and purchase type.
Product Type Insights:
- Vegetables and Fruits
- Dairy Products
- Staples and Cooking Essentials
- Snacks
- Meat and Seafood
- Others
The report has provided a detailed breakup and analysis of the market based on the product type. This includes vegetables and fruits, dairy products, staples and cooking essentials, snacks, meat and seafood, and others.
Business Model Insights:
- Pure Marketplace
- Hybrid Marketplace
- Others
A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes pure marketplace, hybrid marketplace, and others.
Platform Insights:
- Web-Based
- App-Based
The report has provided a detailed breakup and analysis of the market based on the platform. This includes web-based and app-based.
Purchase Type Insights:
- One-Time
- Subscription
A detailed breakup and analysis of the market based on the purchase type have also been provided in the report. This includes one-time and subscription.
Regional Insights:
- London
- South East
- North West
- East of England
- South West
- Scotland
- West Midlands
- Yorkshire and The Humber
- East Midlands
- Others
The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.
Competitive Landscape:
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
UK Online Grocery Market Report Coverage:
| Report Features | Details |
|---|---|
| Base Year of the Analysis | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Units | USD Billion |
| Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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| Product Types Covered | Vegetables and Fruits, Dairy Products, Staples and Cooking Essentials, Snacks, Meat and Seafood, Others |
| Business Models Covered | Pure Marketplace, Hybrid Marketplace, Others |
| Platforms Covered | Web-Based, App-Based |
| Purchase Types Covered | One-Time, Subscription |
| Regions Covered | London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others |
| Customization Scope | 10% Free Customization |
| Post-Sale Analyst Support | 10-12 Weeks |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
- How has the UK online grocery market performed so far and how will it perform in the coming years?
- What has been the impact of COVID-19 on the UK online grocery market?
- What is the breakup of the UK online grocery market on the basis of product type?
- What is the breakup of the UK online grocery market on the basis of business model?
- What is the breakup of the UK online grocery market on the basis of platform?
- What is the breakup of the UK online grocery market on the basis of purchase type?
- What are the various stages in the value chain of the UK online grocery market?
- What are the key driving factors and challenges in the UK online grocery?
- What is the structure of the UK online grocery market and who are the key players?
- What is the degree of competition in the UK online grocery market?
Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK online grocery market from 2018-2032.
- The research report provides the latest information on the market drivers, challenges, and opportunities in the UK online grocery market.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK online grocery industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.
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