UK third largest global online grocery market

The UK has been named as the world’s third largest online grocery market, according to a new report, which also showed total global e-commerce sales increased 15 per cent year-on-year.

The UK holds 6.9 per cent of the global e-commerce grocery market according to the new report by Kantar Worldpanel, behind just South Korea (16.6 per cent) and Japan (7.2 per cent). Meanwhile, overall sales of groceries worldwide through e-commerce platforms reached $48 billion in the 12 months to June 2016.

The third annual Future of E-commerce in FMCG study found that e-commerce now accounts for 4.4 per cent of all FMCG sales. Whilst the e-commerce channel is growing, the FMCG market as a whole is flat, increasing just 1.6 per cent during the same period.

The report also showed that shoppers generally spend more per trip online than they do offline. For example, in the UK the average shop online is $59 compared to $15 in-store.

Stéphane Roger, retail director at Kantar Worldpanel, said: “FMCG growth is slowing, but our data shows that people are looking for more convenience, which can be met by shopping online. Grocery e-commerce, although currently small, with only one in four people shopping online, is growing fast. We forecast it will grow to 9 per cent of the market and be worth $150 billion by 2025.

“Although online sales have the potential to cannibalise in-store sales, it is vital that retailers act quickly to develop a strong e-commerce presence. The retailer that goes online first in each market can enjoy a far higher market share - this can be a difference of at least 40 per cent in France and up to three times more in the UK.”

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