Consumers Planning To Continue Online Grocery Shopping

Namnews, 26th May 2021

The recent online grocery shopping boom looks set to continue over the long term after a recent survey of British consumers found that 90% were planning to keep shopping in the channel once the pandemic passes. Meanwhile, just 5% of shoppers said they are planning to stop doing so.

The study by Mintel found that 59% of consumer are online grocery shoppers, up from 50% in 2019 – this represents the highest level of growth recorded in the past decade. In addition to user growth, the category is experiencing increased usage from existing users, with over half (53%) of online grocery shoppers doing more shopping through the channel as a result of Covid-19. Less than one in ten (7%) current online grocery shoppers had not used the online channel before the pandemic, rising to 14% of over 65s.

Mintel forecasts that British consumers will spend £19.4bn on online grocery shopping in 2021, a decline of 13% compared to 2020, as the market rebalances following extraordinary demand during the pandemic. However, the online grocery market is expected to get a ‘legacy boost’ from the pandemic with Mintel forecasting the market will be worth £22.4bn by 2025 – a £4.9bn increase over pre-pandemic forecasts.

Nick Carroll, Mintel Associate Director of Retail, said: “We’re witnessing a step-change in online shopping engagement caused by the pandemic, as evidenced by the vast majority of consumers who plan to continue online grocery shopping once we’re past peak-Covid.

“The pandemic has created new models for buying groceries online and it’s not just the core ‘big-basket’ online grocery services that will benefit from this boost. The explosion of new rapid-delivery businesses has finally created an online ‘small-basket’ option for customers, while subscription services and meal-kit providers have hit all-time sales highs.

“Alongside this, greater engagement in social media commerce has opened up new opportunities in direct-to-consumer, with grocery manufacturers cutting out retailers and selling directly to consumers. So not only have new shoppers been enticed into buying their groceries online as a result of the pandemic, but in the future there will also be a broader range of online grocery shopping opportunities.

“The next few years will, however, also be a period of rebalancing as consumers reassess what circumstantial behaviours from 2020 they will stick with, and retailers decide what aspects of their rapid scaling of online operations are sustainable long-term. Indeed, managing heightened online demand, while simultaneously encouraging some shoppers back into stores, will be a delicate balancing act for retailers. Click & collect will play a crucial part as the bridge between retailers’ digital and physical customer base.”

NAM Implications:

• 59% of consumers shopping for groceries online…
• …will not easily revert to ‘perceived-inconvenience’ of bricks & mortar
• Apart from ‘traditional online grocery’ big shop.
• Meanwhile, explosion of new rapid-delivery online ‘small-basket’ option…
• …and subscription services and meal-kit providers…
• …will encourage more participation by consumers, retailers and suppliers.