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Global Online Grocery Market: Trends and Opportunities (2014-2019)

  • December 2014
  • -
  • Daedal Research
  • -
  • 60 pages

Summary

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Scope of the Report

The report, “Global Online Grocery Market: Trends and Opportunities (2014-2019)” analyzes the development of the global online grocery retail sales and penetration of online grocery in various markets. The global market along with markets of the UK, France, Germany and Asian economies like India, Korea and China are being discussed in the report. The major trends, growth drivers as well as issues being faced by the industry are being presented in this report. The four major players in the industry, Tesco Inc, Amazon, J Sainsbury plc and Ocado Group Plc are being profiled, along with their key financials and strategies for growth.

Country Coverage

- The UK
- France
- Germany
- India
- Korea
- China

Companies Coverage

- Tesco Plc
- J Sainsbury Plc
- Amazon
- Ocado Group Plc

Executive Summary

Grocery sales through online channels represent a very small portion of the overall grocery retail market but are amongst the fastest growing segment. Global online grocery market value has consistently increased over the past few years. With rising penetration of high speed internet connections and usage of smartphones, consumers are conducting grocery purchases online. The biggest advantage to customers for online grocery shopping is convenience of placing an order online and having goods delivered to the door that saves time.

Online grocery has lower fixed costs than in-store retailing, but has higher variable costs. The UK is the most advanced market for grocery online. Emerging markets like India, Brazil, South Africa and Saudi Arabia holds great potential for expansion in online grocery market.

However, a significant hurdle in online grocery market remains freshness as many customers still prefer to see the produce before purchase. Furthermore, complex logistics and lack of awareness are other key challenges to the industry. As customers adopt the online channel for groceries, retailers are increasingly investing in capacity and in delivering better service while suppliers are devoting more resources to online. Niche and specialist online grocery suppliers have continued to observe significant sales growth in recent years, with more and more companies now looking to gain a foothold within the online market. Some major online grocery retailers include Tesco Inc, Amazon, J Sainsbury, Ocado, Asda and Morrisons.

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