Mintel predicts UK online grocery sales to grow by 33% in 2020

The latest research from Mintel reveals the online grocery market in the United Kingdom is forecast to grow by 33% in 2020 to reach an estimated value of £16.8 billion, up from £12.7 billion in 2019. This phenomenal rise follows four consecutive years of slowing growth: in 2019, growth fell to a historic low of just 2.9%. The market is set to be worth £17.9 billion by 2024, growing by 41% over the five-year period.

This comes as Mintel reveals a dramatic change in online shopping habits over the COVID-19 lockdown period, habits that Mintel believes could prove lasting. In the very early days of the spread of the coronavirus in the United Kingdom, before social distancing measures were announced, 7% of British consumers increased the total amount of online shopping (both food and non-food). In the space of fewer than two months, online shopping has seen a dramatic boost with the number of consumers who say they have increased their online shopping rising to 36%.

Meanwhile, 50% of Brits have tried to limit the time they spend in-store, while a further 9% have used click-and-collect more.

“The pandemic is giving a significant short-term boost to online grocery services, as shoppers look to avoid stores and limit their contact with the outside world,” said Nick Carroll, associate director of retail research at Mintel, in a press release. “However, the impact will last beyond the crisis. Shopper numbers in the online grocery market have plateaued in recent years as retailers struggled to get new customers to try these services. The outbreak is bringing a new audience to online grocery, and this should boost the market long term with strong growth forecast through to 2024.”