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UK Is Now The World’s Third-Largest Adopter Of Online Grocery Shopping

  • Written By Javier
  • Posted October 7, 2016
  • 2 minutes Read Time

The recent eCommerce grocery market report by Kantar Worldpanel has revealed that the UK is the world’s third-largest adopter of online grocery shopping, as well as the largest in Europe.

Digitally developed South Korea is way out in front, with eCommerce having a 16% share of the grocery market there, followed by Japan, which has a 7.2% share.

The UK comes in third place, but strides ahead of the rest of Europe, with eCommerce having a 6.9% share. France follows behind with 5.3%, as well as Spain (1.7%) and Germany (1.2%). Surprisingly, the USA is a country with one of the smallest online FMCG markets by value share, with only 1.4% of groceries bought online in the States.

Online grocery shopping is growing fast in the UK – at a rate of 20% annually in fact. In comparison, the global eCommerce grocery market has grown by around 15% over the past 12 months, meaning the UK’s market is growing at a higher rate than the norm. The global eCommerce FMCG market is now worth an astonishing $48 billion, with eCommerce accounting for 4.4% of all FMCG sales.

As a result, retailers need to act quickly to determine a strong eCommerce presence before it becomes much more commonplace. Early adopters of eCommerce in their sector enjoy a much higher market share than their competitors who are late to the party – sometimes this market share is three times as large.

The Kantar Worldpanel report also revealed statistics which demonstrated some of the benefits of selling groceries online. It found that online shopping generated loyalty, and once consumers have begun shopping online, they continue to do so, taking away business from physical stores. It means that now almost a quarter (23.3%) of what consumers spend is done through eCommerce.

Shopping baskets are also bigger, with consumers spending an average of $59 online compared to in the store, where the average spend was $15. However, consumers do less impulse shopping online than they do in the store, so work needs to be done to create eCommerce websites which suggest potential purchases based on the user’s interests.