The online food and grocery market in Europe has been growing in the past years, as people are looking more and more to make use of the convenient ways of grocery shopping and save time. However, the food and grocery industry is maybe one of the hardest to manage (having in mind the perishability, delivery, huge assortment, etc.) for businesses. At the same time, it requires a very good UI and UX so that it can really be enjoyed with ease by the end-users.
In Europe, in 2009 the online food and grocery shopping accounted for 13% of the ordered goods and services online. Since 2009 until 2018 the share of food and grocery e-shopping has almost doubled (92% growth)–and in 2018, 25% of online orders were made for food and groceries (Eurostat, 2018). This indicates that this sector holds potential for growth as consumers are starting to embrace online shopping of FMCG and other essentials.
There are six e-retailers in the food sector that are ranked among the top 25 in Europe. Only one of them, Ocado Ltd from the UK, is doing all of its sales online. At Sainsbury’s also from the UK, 20% of the sales are made online, while the rest four companies are making only a small percentage of their turnover online. For example, UK based ASDA (Wallmart) and Tesco are doing only 8% and 7% of their sales online, and France based E.Leclerc and Carrefour 8% and 4% respectively.
The growth in online sales of the grocery sector can foster further growth of the e-commerce industry. In addition, the analysis of this market can provide useful information for e-retailers as well. First of all, let’s take a look at the growth of online sales of food and groceries as a share of ordered goods and services online in 2009 and 2018, by European countries. As we can see in the chart below in some countries the growth has been exponential.
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