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TRENDSOnlinegroceryshoppingintheUnitedKingdom(UK)CHAPTER

01OverviewShareoffoodretailsalesmadeonlineinGreatBritainfromJanuary2018toJune2023OnlineshareoffoodsalesinGreatBritain2018-202313.0%12.0%11.0%10.0%9.0%8.0%7.0%6.0%5.0%4.0%Jan

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233Description:TheshareoffoodretailsalesmadeonlineinpredominantlyfoodstoresinGreatBritainsawitsbiggestgrowthinJanuary2021,whenthecoronavirus(COVID-19)containmentmeasuresweretightenedintheUnitedKingdom.Sincethen,theproportionofonlinefoodretailslowlydecreased.Mostrecentfiguresshowedthatshareoffoodretailsalesmadeonlinewasat8.5percentasofJune2023.

ReadmoreNote(s):UnitedKingdom;January2018toJune2023Source(s):OfficeforNationalStatistics(UK)AnnualgrowthrateofonlinefoodandgrocerymarketintheUnitedKingdom(UK)from2016to2026OnlinefoodandgrocerymarketgrowthrateintheUK2016-202690%76.3%80%70%60%50%40%30%20%10%0%10.8%20199.6%20169.4%20179.4%20188.9%20217.1%20246.9%20256.6%20260%-12%2022-10%-20%20202023*4Description:TheonlinefoodandgroceryshoppingmarketintheUnitedKingdomrecordedanannualdecreaseof12percentin2022.Thatiswelldownonthepreviousyearwhene-shoppingforfoodandgroceriesrosetopopularityduetotheCOVID-19pandemic.Aslightincreaseingrowthwasforecastfor2023asUKconsumersbecomeaccustomedagaintobuyinggroceriesonlineagain.ReadmoreNote(s):UnitedKingdom;2016to2022;*Startingfromthisyear,figuresareforecasts.ReadmoreSource(s):GlobalData;SavillsPercentagechangeinmonthlyinternetfoodsalesvalueinGreatBritainfromJanuary2020toJune2023InternetfoodsalesvaluetrendmonthlyinGreatBritain2020-2023160%140%120%100%80%60%40%20%0%-20%-40%5Description:ThemonthlytrendinthevalueofretailinternetfoodsalesinGreatBritainsurgedbetweenMarch2020andMarch2021,whenthefirstCOVID-19restrictionswereenforced.Afterthat,themonthlygrowthshowednegativevaluesunitlFebruary2023.InJune2023,onlinefoodsalesincreasedby4.6percentcomparedtothesamemonthofthepreviousyear.ReadmoreNote(s):UnitedKingdom;January2020toJune2023Source(s):OfficeforNationalStatistics(UK)PenetrationofonlinefoodandgrocerymarketintheUnitedKingdom(UK)from2016to2026OnlinefoodandgrocerypenetrationrateintheUK2016-202614.5%13.5%12.5%11.5%10.5%9.5%13.4%12.5%12.4%11.9%11.6%11.4%11%8.5%7.7%20197.5%6.5%5.5%7.1%20186.7%20176.3%20162020202120222023*2024202520266Description:HighdemandduringthelockdownfollowingtheCOVID-19outbreakcausedtheonlinefoodandgrocerymarketpenetrationtonearlydoublebetween2019and2021.However,asthesituationhasreturnedtonormal,thisgrowthhasslowed.In2022,thepercentageofuserspurchasingfoodandgroceriesonlinewas11.6percent,adecreasecomparedtothepreviousyear.

ReadmoreNote(s):UnitedKingdom;2016to2022;*Startingfromthisyear,figuresareforecasts.ReadmoreSource(s):GlobalData;SavillsNumberofonlinegroceryretailersintheUnitedKingdom(UK)from2018to2023(inbillionBritishpounds)NumberofonlinegroceryretailersintheUK2018-20232,5002,0001,9701,9771,9881,7201,7281,7361,5001,0005000201820192020202120222023*7Description:ThenumberofonlinegroceryretailersintheUnitedKingdomreachedatotalof1,977in2022.Thisnumberisforecasttoincreaseslightlyin2023with1,988onlinegroceryretailersthroughoutthecountry.ReadmoreNote(s):UnitedKingdom;2018to2023;*Forecast.ReadmoreSource(s):IBISWorldCHAPTER

02SegmentsE-commercefoodmarketrevenueintheUnitedKingdom(UK)in2022,bysegment(inmillionU.S.dollars)E-commercefoodmarketrevenueintheUK2022,bysegmentRevenueinmillionU.S.dollars600

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1,00002004001,2001,4001,6001,8001,819.172,000MeatConfectionery&SnacksConvenienceFoodVegetables1,594.181,293.961,200.651,102.371,006.54994.97DairyProducts&EggsBread&CerealProductsFruits&NutsFish&Seafood311.95Oils&Fats188.79Sauces&Spices72.1830.49Spreads&Sweeteners9Description:Concerningthe11selectedsegments,thesegmentMeathasthelargestrevenuewith1.8billionU.S.dollars.Contrastingly,Spreads&Sweetenersisrankedlast,with30.49millionU.S.dollars.Theirdifference,comparedtoMeat,liesat1.8billionU.S.dollars.ReadmoreNote(s):UnitedKingdom;Jan1sttoDec31st2022Source(s):Groceries&beveragespurchasedonlinebycategoryintheUKasofJune2023Groceries&beveragespurchasedonlinebycategoryintheUK2023Shareofrespondents10%0%5%15%20%25%30%35%FruitandvegetablesBreadandbakeryproductsCoffee&tea35%32%32%32%32%FrozenfoodSoftdrinks&juicesDairyproducts(milk,yogurt,cheese,etc.)Riceandpasta31%31%30%30%29%MeatandsausagesSnacks&candyBreakfastcerealFishandseafoodBeer(onlyshowntorespondentsoflegaldrinkingage)Bottledwater22%21%21%10Description:"Fruitandvegetables"and"Breadandbakeryproducts"arethetoptwoanswersamongUKconsumersinoursurveyonthesubjectof"Groceries&beveragespurchasedonlinebycategory".

ReadmoreNote(s):UnitedKingdom;July2022toJune2023;4029respondents;18-64yearsSource(s):ConsumerInsightsChannelsusedforgroceryshoppingintheUnitedKingdom(UK)in2022GroceryshoppingchannelsintheUK2022Exclusivelyonline2.3%Mainlyonline,partlyin-store16.9%Exclusivelyin-store39.2%Mainlyin-store,partlyonline41.6%11Description:DespitetheincreaseinonlinegroceryshoppinginthewakeoftheCOVID-19pandemic,in2022,themajorityofUKgroceryshoppersweredoingthisactivityprimarilyin-storeandpartlyonline.Thatyear,only2.3percentofconsumerssurveyedreportedbuyingtheirgroceriessolelyonline.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;2,500respondents;16-65yearsSource(s):Appinio&SprykerChannelsusedforgroceryshoppingintheUnitedKingdom(UK)in2022,byagegroupGroceryshoppingchannelsintheUK2022,byagegroupExclusivelyin-storeMainlyin-store,partlyonlineMainlyonline,partlyin-storeExclusivelyonline2%100%90%80%70%60%50%40%30%20%10%0%1%13%3%2%4%15%18%19%19%26%34%56%48%45%34%51%46%34%31%16-2425-3435-44Agegroup45-5455-6512Description:In2022,morethanhalf(56percent)ofgroceryshoppersintheUKaged16to24mostlymadethesepurchasesin-storeandpartlyonline.Whilelessthanathirdofbuyersinthesameagegroupexclusivelyboughttheirgroceriesin-store,thisfigurerosetoalmosthalfforconsumersaged55andover.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;2,500respondents;16-65yearsSource(s):Appinio&SprykerWhatdoyoubuymostwhengroceryshoppingonline?MostcommonlypurchasedgrocerieswhenshoppingonlineintheUK2022,bycategoryShareofrespondents0%10%20%30%40%50%60%70%FrozenproductsDrygoodssuchaspasta,riceDairyproducts(yogurt,milk,etc.)Beverages65.2%64.8%60.8%60.8%Sweetsandsnacks60.6%60.4%FruitandvegetablesFreshmeatandfish53.5%Readymeals43.4%Pharmacyproducts32.5%13Description:In2022,thegroceryproductcategorymostcommonlyboughtonlinebyconsumersintheUnitedKingdomwasfrozengoods.Specifically,about65percentofonlinegroceryshoppersintheUKstatedtheypurchasedfrozenproductswhilegroceryshoppingontheweb.Pharmacyproductswastheleastpopularcategoryamongconsumers.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;1,521respondents;16-65yearsSource(s):Appinio&SprykerCHAPTER

03ConsumptionShareofshoppersbuyinggroceriesmostlyonlinevs.in-storeintheUnitedKingdom(UK)in2ndquarter2023Shareofshoppersbuyinggroceriesmostlyonlinevs.in-storeintheUK202360%50%40%48%36%30%20%10%0%MostlyonlineMostlyinstore15/statistics/1403645/online-in-store-grocery-shoppers-united-kingdomIntheUnitedKingdom,consumersmostlyboughttheirgroceriesinstores.Asurveyconductedinthesecondquarterof2023revealedthatwhile36percentofUKshopperspurchasedgroceriesonline,nearly50percentpreferredtoshopmostlyinperson.ReadmoreNote(s):UnitedKingdom;Q22023;1,000respondentsSource(s):Klarna;NepaShareofshoppersbuyinggroceriesmostlyonlineintheUnitedKingdom(UK)in2ndquarter2023,bygenerationalcohortShareofshoppersbuyinggroceriesonlineintheUK2023,bygeneration70%58%60%50%40%30%20%10%0%28%26%21%GenZ(18-26years)Millennials(27-42years)GenX(43-58years)BabyBoomers(59-77years)16Description:IntheUnitedKingdom,Millennialsarethemosteagertobuytheirgroceriesonline.Accordingtoasurveycarriedoutinthesecondquarter2023,58percentofconsumersinthecountryagedbetween27and42yearsoldwouldbuygroceryproductsmostlyviae-commerce.GenZfollowed,as32percentofthegenerationalcohortpreferredshoppingfortheirforgroceriesmostlyonline.

ReadmoreNote(s):UnitedKingdom;Q22023;1,000respondentsSource(s):Klarna;NepaShareofshoppersbuyinggroceriesmostlyonlineintheUnitedKingdom(UK)in2ndquarter2023,bygenderShareofshoppersbuyinggroceriesonlineintheUK2023,bygender40%37%35%35%30%25%20%15%10%5%0%MaleFemale17Description:IntheUnitedKingdom,menweremorelikelytobuytheirgroceriesonline.Accordingtoasurveycarriedoutinthesecondquarter2023,37percentofmaleconsumersinthecountrywouldbuygroceryproductsmostlyviae-commerce.Incomparison,35percentofwomenpreferredshoppingfortheirforgroceriesmostlyonline.ReadmoreNote(s):UnitedKingdom;Q22023;1,000respondentsSource(s):Klarna;NepaShareofonlinegrocery&beverageshoppersintheUnitedKingdomasofMarch2023,bygenerationOnlinegrocery&beverageshoppersintheUnitedKingdom2023,bygenerationOnlinegrocery&beverageshoppersNon-shoppers25%100%90%80%70%60%50%40%30%20%10%0%30%45%55%54%75%70%46%BabyBoomer(1946-1964)GenerationX(BabyBust)(1965-1979)

Millennials/GenerationY(1980-1994)IGen/GenZ(1995-2012)18Description:Thedisplayeddataononlinegrocery&beverageshoppingbygenerationshowsresultsoftheConsumerInsightsGlobalsurveyconductedintheUnitedKingdomin2023.Some68percentofGenZrespondentsareonlinegrocery&beverageshoppers,asofMarch2023.Thesurveywasconductedin2023,among4,031respondents.ReadmoreNote(s):UnitedKingdom;April2022toMarch2023;4031respondents;18-64yearsSource(s):ConsumerInsightsDevicesusedforonlinegroceryshoppingintheUnitedKingdom(UK)in2022DevicesusedforonlinegroceryshoppingintheUK2022Shareofrespondents30%

40%0%10%20%50%60%70%80%MobilephoneDesktop/websiteTablet68.8%42.9%22.7%Voiceassistant4.9%19Description:Accordingtoa2022survey,nearlysevenintenonlinegroceryshoppersintheUnitedKingdommadethesepurchasesviamobilephones.Desktopswerethesecondmost-useddevice,withroughly43percentofrespondentsreportingtohaveusedtheirdesktopcomputerstobuygroceriesonline.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;1,521respondents;16-65yearsSource(s):Appinio&SprykerAveragespendingperweekononlinegroceryshoppingintheUnitedKingdom(UK)in2022AverageweeklyspendingononlinegroceryshoppingintheUK202245%38.9%40%33.7%35%30%25%20%15%10%5%14.3%11%2%0%Lessthan￡20￡20-50￡51-100AveragespendinGBP￡101-200Morethan￡20120Description:Accordingtoasurveyconductedin2022,nearlyfouroutofthreeonlinegroceryshoppersintheUKspentonaveragebetween51and100Britishpoundsaweekonthesepurchases.Thatyear,only13percentofBritishgroceryshoppersspentmorethan100poundsperweekontheseproducts.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;1,521respondents;16-65yearsSource(s):Appinio&SprykerReasonstopurchasegroceriesonlineintheUnitedKingdom(UK)in2022,byagegroupMainreasonstobuygroceriesonlineintheUK2022,byageMissingcookingingredientsDoallweeklygroceryshoppingHomeandtoolazytoleaveAvoidstores(e.g.crowds,riskofinfection)NotimetogoshoppingOther/s60%50%40%30%20%10%0%16-2425-3435-4445-5455-6521Description:Asurveyconductedin2022revealedthatalmosthalf(49percent)ofshoppersaged55to64intheUnitedKingdomboughttheirgroceriesonlinetoavoidgoingtothestore,likelytoavoidcrowdsandtheriskofCOVID-19infections.Additionally,44percentof25to24-year-oldUKconsumersshoppedonlineforgrocerieswhentheyhadnotimeforatriptothestore.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;1,521respondents;16-65yearsSource(s):Appinio&SprykerNegativeexperiencesofonlinegroceryshoppingintheUnitedKingdom(UK)in2022NegativeexperienceswhenbuyinggroceriesonlineintheUK2022Shareofrespondents0%5%10%15%20%25%30%35%40%45%42.5%ToomanysubstituteditemsIcouldn'tfindamatchingdeliveryslotGroceriesdidnotarrivefreshenoughDeliverychargewastoohigh33.7%30.8%28.6%MinimumordervaluewastoohighDeliverydidnotarriveontime19.9%19.9%Ihaven'thadanynegativeexperiences13.7%22Description:Accordingtoa2022survey,themostcommonnegativeexperienceamongonlinegroceryshoppersintheUnitedKingdomwasthatthereweretoomanysubstituteditems,with42.5percentofrespondentsreportingsuch.Inaddition,overathird(33.7percent)ofUKe-groceryshoppers'mainproblemwithonlinegroceryshoppingwasnotbeingabletofindasuitabledeliveryslot.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;1,521respondents;16-65yearsSource(s):Appinio&SprykerCHAPTER

04OnlinestoresandappsLeadingfood&beverageonlinestoresintheUnitedKingdomin2022,bye-commercenetsales(inmillionU.S.dollars)UnitedKingdom:Top10food&beveragesonlinestores2022E-commercerevenueinmillionU.S.dollar01,0002,0003,0004,0005,0006,000sainsburys.co.uk5,3483,7933,5092,366iceland.co.ukamazon.co.ukcoop.co.uk1,1611,04253936131020024Description:TisleadingtheFood&Beveragese-commercemarketintheUK,withe-commercenetsalesofUS$5,348millionin2022generatedintheUK,followedbysainsburys.co.ukwithUS$3,793million.ThirdplaceistakenbywitharevenueofUS$3,509million.Oisthefourthbiggestfood&beveragesonlinestoreintheUKwithnetsalesofUS$2,366millionin2022.ReadmoreNote(s):2022Source(s):ecommerceDB.com;Onlinegrocery&beverageshoppingbystorebrandintheUKasofJune2023Onlinegrocery&beverageshoppingbystorebrandintheUK2023Shareofrespondents10%

15%0%5%20%25%30%35%40%TescoAsda37%36%Amazon/AmazonFresh/AmazonPantry32%Sainsbury'sCo-op21%15%15%14%IcelandFoodsMorrisonsHelloFreshBeeliveryCostco12%9%9%GoustoOcado8%8%AbelandCole7%25Description:WeaskedUKconsumersabout"Onlinegrocery&beverageshoppingbystorebrand"andfoundthat"Tesco"takesthetopspot,while"Zapp"isattheotherendoftheranking.ReadmoreNote(s):UnitedKingdom;July2022toJune2023;2598respondents;18-64years;respondentswhoorderedgroceriesorbeveragesonline(eCommerce&retail,Food&consumption)Source(s):ConsumerInsightsUsefrequencyofonlinegrocerydeliveryservicesintheUnitedKingdom(UK)in2022UsefrequencyofonlinegrocerydeliveryplatformsintheUK2022ShareofrespondentsRegular30%Occasional40%38.9%Usedit,butnotanymoreNevertried70%12.8%19.7%0%10%20%50%60%80%90%26.2%21.2%100%JustEatGrocemaniaUberEatsDeliverooDija22.1%21.2%37.9%17.2%11.5%37.2%12.7%33%37.6%34%16.9%21.9%17.3%18.4%25.5%30.9%18.2%25.5%JiffyGroceriesStuart14.1%15.6%17.3%28.3%10.1%47.5%28.1%26%24.3%34.4%39.4%36.9%BeeliveryWeezy20.4%AmazonFreshZapp10.1%15%10.8%24.2%14.4%51.3%49.5%53.1%22.9%12.6%Foodhub20.8%15.3%26Description:QuickcommerceplatformDijawasthemostregularlyusedonlinegrocerydeliveryserviceintheUnitedKingdom,accordingtoa2022survey.Aboutone-fourthofrespondentsreportedusingitregularly,andnearly31percentsaidtheyusedDijaoccasionally.Incomparison,about22percentofrespondentsregularlyusedJustEat.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;2,267respondents;16-65yearsSource(s):Appinio&SprykerMostpopulargrocerieswebsitesintheUnitedKingdom(UK)inApril2023,basedonshareofvisitsLeadinggrocerieswebsitesintheUK2023,basedonvisitshareShareofvisits8%

10%0%2%4%6%12%14%16%18%20%18.76%13.13%sainsburys.co.uk11.33%5.07%4.58%27Description:InApril2023,thewebsiteofthegrocerTescoregisteredthehighestdesktoptraffictogrocerysitesintheUnitedKingdom,with18.76percent.Insecondplacewaswith13.12percentofvisits,followedinthirdplacebySainsbury's,withjustover11percent.ReadmoreNote(s):UnitedKingdom;April2023;desktoponly;category:Foodanddrink-GroceriesSource(s):SimilarWebRetailersthatconsumerswouldmostliketoseeofferingonlinefoodorderingintheUnitedKingdom(UK)in2022MostwantedretailersforonlinefoodorderingservicesintheUK2022Shareofrespondents0%10%20%30%40%50%60%ALDI53%LidlM&S45%34.1%Co-op21.4%NoneoftheaboveOther15.4%1.1%28Description:A2022surveyrevealedthatALDIwastheretailerUKconsumersmostwishedtoofferonlinegroceryorderingoptions,citedbymorethanhalf(53percent)ofrespondents.Lidlcameinsecond,with45percentofrespondentswantingthecompanytoofferonlinegroceryshoppingalternatives.ReadmoreNote(s):UnitedKingdom;MarchtoJune2022;2,500respondents;16-65yearsSource(s):Appinio&SprykerNumberofdownloadsofleadingfooddeliveryandtakeoutappsintheUnitedKingdom(UK)in2022(in1,000s)MainfooddeliveryappsintheUK2022,bydownloadsNumberofdownloadsinthousands01,0002,0003,0004,0005,0006,0007,000TescoGroceriesforiPhoneUberEats:FoodDeliveryDeliveroo:FoodDeliveryAppJustEat-FoodDelivery5,976.123,515.873,208.362,840.78getir:groceriesinminutesHelloFresh:MealKitDeliveryGopuff-Alcohol&FoodDeliverySainsbury'sGroceries1,557.31939.57758.51720.22Gorillas:GroceryDeliveryGlovo:FoodDeliveryandMoreGousto560.52455.57449.63306.93Zapp-24/7Drinks&GroceriesfoodpandalocalfooddeliverySnappyShopperGroceryDeliveryDoorDash-FoodDelivery240.68219.96210.6129Description:Withnearlysixmilliondownloads,TescoGrocerieswasthemostpopularfooddeliveryappintheUnitedKingdom(UK)in2022.ThesecondplacewenttoUberEats,whichrecordedabout3.5milliondownloadsthatyear.Deliveroofollowedthird,withoverthreemilliondownloads.ReadmoreNote(s):UnitedKingdom;2022Source(s):AppMagicCHAPTER

05LeadinggrocersprofileTescobrandawareness,usage,popularity,loyalty,andbuzzamongonlinegrocerydeliveryusersintheUnitedKingdomin2022TescobrandprofileintheUK2022100%90%80%70%60%50%40%30%20%10%0%96%55%48%41%32%TescoawarenessTescopopularityTescousageTescoloyaltyTescobuzz31Description:HowhighisthebrandawarenessofTescointheUK?ReadmoreNote(s):UnitedKingdom;May12to18,2022;1042respondents;18to64years;respondentswhouseonlinegrocerydeliverySource(s):

ConsumerInsightsAsdabrandawareness,usage,popularity,loyalty,andbuzzamongonlinegrocerydeliveryusersintheUnitedKingdomin2022AsdabrandprofileintheUK2022100%90%80%70%60%50%40%30%20%10%0%95%51%46%38%33%AsdaawarenessAsdapopularityAsdausageAsdaloyaltyAsdabuzz32Description:HowhighisthebrandawarenessofAsdaintheUK?ReadmoreNote(s):UnitedKingdom;May12to18,2022;1042respondents;18to64years;respondentswhouseonlinegrocerydeliverySource(s):

ConsumerInsightsOcadobrandawareness,usage,popularity,loyalty,andbuzzamongonlinegrocerydeliveryusersintheUnit