Summary

The online groceries market in Europe is booming due to changing consumer behaviour, increased availability, technological advances, growing competition, and government support. The European online grocery delivery market is moderately competitive owing to the presence of multiple players. Players in the market use strategies like coming up with new products, merging with other companies, and buying other companies in order to grow their product lines, reach more places, and stay competitive in the market. In major cities around Europe, operators that deliver groceries within 10-15 minutes also referred to as ‘quick commerce’ or ‘q-commerce’, have seen enormous growth over the last two years. On the quick commerce front, there are now 10+ companies across Europe with more-or-less the same business model. Pure Quick commerce players like Getir, Gorillas, Flink, and Zapp, which have attracted big investments to increase their presence, appear to have a fighting chance. Aggregators like Just Eat and Uber Eats can simply integrate dark businesses into their existing operations, allowing them to compete in this space. Online services in the region include the French La Belle Vie and the Dutch Crisp. Hello Fresh, the German food box behemoth that has tripled their client base in the last two years, has created a grocery store in their app and delivers extra products in addition to their meal boxes. The online groceries market in Europe is becoming increasingly competitive, with major retailers like Carrefour, Aldi, and Lidl expanding their online grocery offerings to compete with established online players like Ocado and Amazon. This competition is driving innovation and improving the overall online grocery shopping experience. Consumer behavior is changing, and more consumers are turning to online shopping for convenience, speed, and safety. The COVID-19 pandemic has accelerated this trend, with more consumers avoiding physical stores and opting for online grocery shopping.

According to the research report, “Europe Online Groceries Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add USD 169 Billion from 2023 to 2028. In Europe, the leading players are currently focusing on expanding their existing consumer base. They are investing significantly in promotional campaigns, which are boosting the growth of the online grocery market. Furthermore, manufacturers can directly communicate with existing and future customers via social media apps such as Facebook and Instagram, which have a significant impact on extending their consumer base. The growing penetration of advanced technologies, such as artificial intelligence (AI), the internet of things (IoT), and big data, is also contributing to the market's growth. Additionally, the increase in government administrations and financial organizations promoting the use of digital payment methods to contain virus spread is expected to boost market revenue. To reduce the possibility of the virus spreading, the European Banking Authority (EBA) mandated that payment firms utilise contactless payments by March 2020. Companies are building differentiated business strategies in order to boost customer satisfaction and remain competitive in the market. Furthermore, as consumer demand grows in the United Kingdom, delivery capacity expands. J Sainsbury PLC, for example, is deploying 1,000 more delivery vans in September 2020 to handle 700,000 grocery purchases online per week. Delivery times have been extended by other retailers, including Tesco PLC, Asda Stores Ltd., and Morrisons, to serve more customers and increase market share. Also, the growing population of baby boomers, along with higher internet penetration in European countries has led to their market dominance. Based on countries, United Kingdom is leading the market with over 30% market share in 2022.

The United Kingdom is known for its focus on innovation. In recent decades, supermarkets and customers have demonstrated a willingness to experiment with and adopt innovative concepts significantly sooner than comparable economies such as France and Germany. Loyalty card schemes, cashback at supermarket checkouts, and self-service check-outs originally appeared in the UK and are still more extensively utilised there. All of the online grocery trends that the UK has gladly adopted are likely to be replicated in other countries, thus market participants will keep an eye on the UK. Staying ahead of developments is important for any commerce company, while UK-based food retailers will want to keep up with the exacting pace of change. Online grocery platforms offer a wide variety of fresh and packaged products, including dairy products, fruits and vegetables, frozen food, meat, beverages, and other cooking essentials. They offer several additional benefits, such as express delivery options, accessible payment gateways, cashback and discounted offers. As a result, there is a high demand for online grocery shopping in Europe. Based on the product type, the Europe market is segmented into staples & cooking essentials, snacks & beverages, breakfast & dairy, fresh produce, meat & seafood and others. Among them, snacks and beverages segment is expected to dominate the market by 2028.

Online grocery sales in Europe are dominated by major players like Ocado, Tesco, Carrefour, and Amazon, but there are also a growing number of local and regional players in the market. Many retailers are investing in new technologies to improve the online grocery shopping experience, such as artificial intelligence, machine learning, and voice assistants. Asda is launching a trial of 'driverless' deliveries of online grocery orders in London, with more sites to follow. In this situation, 'driverless' does not precisely mean what it says on the box, as the truck is actually manned by two individuals, one to ensure the car safely navigates the highways and the other to deliver to the house. However, if the technology is safe, all internet grocery delivery may be made without someone being behind the wheel. The deliveries will be made using navigation technologies produced by the IT startup Wayve in a Jaguar iPace. The online groceries market in Europe is expected to continue growing in the coming years, as more consumers turn to online shopping for convenience, speed, and safety. Based on delivery type, the Europe market is segmented into two parts including click-&-collect and home delivery. Home Delivery is the most popular delivery type for online grocery shopping in Europe. Customers can order groceries online and have them delivered to their doorstep. Many retailers offer next-day or even same-day delivery options. However, with click-and-collect delivery type, customers can place their orders online and then collect their groceries from a designated store or pickup point. This option is popular among customers who want to save on delivery fees or who prefer to pick up their groceries at a convenient location.

The online groceries market is embracing a wide range of technologies to improve the shopping experience for customers. The online groceries market in Europe is constantly evolving and adopting new technologies to improve the shopping experience for customers. Many online retailers are developing mobile apps that allow customers to browse and purchase groceries on their smartphones. These apps often offer features such as personalized recommendations, barcode scanning, and one-click ordering. Online retailers are using artificial intelligence and machine learning algorithms to personalize the shopping experience for customers. These technologies can analyse customer data to provide personalized product recommendations, predict demand for certain products, and optimize pricing strategies. Some online retailers are integrating voice assistants such as Amazon Alexa and Google Assistant into their shopping platforms. Customers can use voice commands to add items to their shopping carts, place orders, and get information about products. Some online retailers are using robotics and automation to streamline their fulfilment processes. This can include automated warehouses, robotic picking and packing systems, and self-driving delivery vehicles. Some online retailers are exploring the use of blockchain technology to improve supply chain transparency and traceability. This can help ensure that products are sourced ethically and sustainably, and can also help prevent fraud and counterfeit products. Some online retailers are experimenting with augmented reality technology to help customers visualize products before making a purchase. For example, customers could use their smartphones to see how furniture or home decor items would look in their homes.

The market is constantly evolving, with new product launches and innovations emerging on a regular basis. Many online retailers in Europe are now offering meal kits, which contain pre-measured ingredients and recipes that customers can use to cook meals at home. Meal kits are designed to save customers time and make cooking at home more convenient. There has been a surge in demand for plant-based products in Europe, and online retailers are responding by launching new plant-based products such as meat substitutes, dairy alternatives, and vegan snacks. Consumers are becoming increasingly conscious of the environmental impact of their purchasing decisions, and many online retailers are launching sustainable products to meet this demand. This can include products with eco-friendly packaging, products made from recycled materials, and products that are sourced sustainably. Online retailers are also launching new health and wellness products such as vitamins, supplements, and natural remedies. This is in response to growing consumer interest in maintaining a healthy lifestyle and preventing illness. Some online retailers are now offering ready-to-eat meals that can be delivered to customers' homes. These meals are designed to be convenient and time-saving, and are often aimed at busy professionals who don't have time to cook.

Developments:
• In January 2023, Sainsbury's, the UK's largest supermarket chain, has partnered with online meal ordering and delivery service Eat Takeaway to provide speedier home delivery for groceries across the country. Customers can order things from Sainsbury's for delivery in less than 30 minutes using the Just Eat app. The cooperation will begin with more than 175 stores by the end of February, with a nationwide rollout planned for 2023.
• In March 2022, The Casino Group and Just Eat France will collaborate to make life easier for French citizens by delivering food to their doors in 30 minutes. Just can match consumer expectations even better because of its cooperation with the Casino Group in France. This agreement covers the group's French food brands, such as Franprix, Monoprix, Vival, Le Petit Casino, La Nouvelle Cave, and others.
• In February 2022, after announcing an international commercial deal, France-based food retailer Carrefour and European online grocery marketplace Everli expanded their partnership to ten towns in France. Carrefour's hypermarkets and supermarkets will be available on Everli in Lille, Lyon, Nice, Toulouse, Bordeaux, Montpellier, Nantes, Grenoble, Rennes, and Paris, as well as their neighboring districts. Consumers in these locations can order up to 25,000 products from over 140 local retailers and have them delivered on the same day.
• In February 2022, Rohlik Group, a Czech online grocery delivery company, has extended its German business, Knusper.de, by opening in Germany's Rhine-Main Metropolitan Region. Customers in and around Frankfurt, Mainz, Wiesbaden, and Darmstadt have begun to place orders with the company. Customers in these places can buy more than 9,000 different items. About 30% of these items come from local butchers, bakeries, and wineries.

Major Companies present in the market:
Amazon, Alibaba, Tesco, Walmart Inc, Koninklijke Ahold Delhaize N.V.,, Rakuten Group Inc., Supermarket Grocery Supplies Private Limited, Choithrams , Zomato, Jumbo , Reliance Retail, MercadoLibre, Inc., Target Brands, Inc., Jumia Technologies AG, Carrefour, Costco Wholesale Corporation, Edeka Zentrale Stiftung & Co. Kg, Albertsons Companies, Inc, LuLu Hypermarket , Ocado Retail , Spinneys ELIENIDAS, Wegmans Food Markets, Inc

Considered in this report
• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Europe Online Groceries market with its value and forecast along with its segments
• Country-wise Online Groceries market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia

By Product Type
• Staples & Cooking Essentials
• Snacks & Beverages
• Breakfast & Dairy
• Fresh Produce
• Meat & Seafood
• Others

By Delivery Type
• Home delivery
• Click and collect

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the artificial lawn industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

ページTOPに戻る

Table of Contents