Grocery Delivery - United Kingdom

  • United Kingdom
  • The United Kingdom's Grocery Delivery market is projected to achieve a revenue of US$26.79bn by 2024.
  • It is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.19%, resulting in a projected market volume of US$41.58bn by 2029.
  • The Retail Delivery market, on the other hand, is anticipated to reach a market volume of US$22.88bn in 2024.
  • In comparison to other countries, China is expected to generate the highest revenue, amounting to US$266.00bn in 2024.
  • In terms of average revenue per user (ARPU), the Grocery Delivery market in the United Kingdom is projected to reach US$1.06k in 2024.
  • Additionally, the number of users in the Grocery Delivery market is expected to reach 33.0m users by 2029.
  • The user penetration rate in the Grocery Delivery market is estimated to be 37.3% in 2024.
  • The United Kingdom's grocery delivery market is rapidly expanding with the rise of online platforms and increased demand for convenient and contactless shopping experiences.
 
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Analyst Opinion

The Grocery Delivery market in United Kingdom has seen a significant growth in recent years, driven by a shift in consumer behavior towards online shopping and convenience.

Customer preferences:
Consumers in the United Kingdom are increasingly turning to online grocery shopping due to its convenience and time-saving benefits. With the rise of technology and the availability of delivery services, customers can now order groceries from the comfort of their homes and have them delivered to their doorstep. Additionally, the COVID-19 pandemic has accelerated the growth of online grocery shopping as consumers have been reluctant to visit physical stores.

Trends in the market:
The Grocery Delivery market in the United Kingdom is highly competitive with several players offering online grocery delivery services. The market is dominated by established players such as Tesco, Asda, and Sainsbury's, but there has been an emergence of new players such as Ocado and Amazon Fresh. These new players are disrupting the market with their innovative business models and technology-driven solutions. For instance, Ocado has developed a highly automated warehouse system that enables them to fulfill orders quickly and efficiently.

Local special circumstances:
The United Kingdom has a highly urbanized population, which means that many consumers live in densely populated areas such as cities and towns. This presents a unique challenge for grocery delivery companies as they need to navigate narrow streets and congested roads to deliver groceries to customers. Additionally, the United Kingdom has a diverse population with varying dietary requirements and preferences, which means that grocery delivery companies need to offer a wide range of products to cater to different needs.

Underlying macroeconomic factors:
The United Kingdom has a strong economy with a high level of disposable income, which means that consumers are willing to pay for convenience and quality. Additionally, the United Kingdom has a well-developed logistics infrastructure, which makes it easier for grocery delivery companies to transport goods across the country. However, the United Kingdom is also facing challenges such as Brexit and the COVID-19 pandemic, which could impact the growth of the grocery delivery market in the future.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

Overview

  • Revenue
  • Analyst Opinion
  • Users
  • Demographics
  • Global Comparison
  • Methodology
  • Key Market Indicators
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