The value of the online grocery market is set to double in value over the next five years to £11.1 billion, according to figures released today.
Industry analysts IGD published research today at its Trading in a Digital World conference which found that, given its current value of ££5.6 billion, this represents a compound annual growth rate of 14.6 per cent between 2012 and 2017.
In its ShopperVista research, which took results from a survey of 2,013 people between July and August this year, the firm found that 58 per cent of shoppers believe technology offers money-saving opportunities while 54 per cent said that it helps to save time.
In the next five to 10 years, 44 per cent of respondents expect to use the internet to buy their groceries while 46 per cent of online shoppers would be enticed by personalised promotions via email.
Shopping via smartphones is proving increasingly popular, with local non-food convenience retailer The Original Factory Shop the latest retailer to announce plans for a mobile enabled site and IGD believes that the launch of the 4G network will boost onlime grocery shopping.
Young shoppers in particular favour using their mobile to make purchases with 57 per cent of under-35s saying they already buy groceries online or are keen to do so and IGD CEO Joanne Denney-Finch believes that the growth of the market is inevitable as technology evolves further.
She said: “Although online only currently represents 3.4 per cent of the overall UK grocery market, it is the fastest growing sector – set to grow by a phenomenal 98 per cent over the next five years.
“Although online grocery is still in its infancy it is evolving at a blistering pace. Food companies need to view their websites as digital assets that not only sell groceries, but also add to the shopping experience through initiatives such as product reviews and ratings, or live chat with members of staff.”