High demand during the lockdown following the COVID-19 outbreak caused the online food and grocery market penetration to nearly double between 2019 and 2021. However, as the situation has returned to normal, this growth has slowed. In 2022, the percentage of users purchasing food and groceries online was 11.6 percent, a decrease compared to the previous year.

Online grocery shopping has become increasingly popular among shoppers since the COVID-19 pandemic, which spurred consumers to purchase their supermarket goods through the internet when faced with lockdowns and stay-home advisories. In 2021, the online food and grocery sales in the United Kingdom amounted to about ** billion British pounds. That figure was forecast to increase to nearly ** billion by 2025. Post-pandemic slowdown despite new shopping habits While online grocery still is expected to generate billions in revenue, growth of the market is set to slow down significantly. As official regulation surrounding the pandemic has ended, the high demand for online grocery ordering has lowered in turn. However, many consumers in 2022, particularly those of higher ages, still cited that avoiding crowds and risk of infection at physical stores was a strong reason for ordering their groceries online. Another popular reason for online grocery shoppers was due to having no time to go to the store themselves. Not the perfect alternative While saving time and avoiding crowds are pros to buying groceries on the web, there are also inevitable cons with this method of grocery shopping. A 2022 survey revealed that too many substituted items, not being able to find suitable delivery times, and un-fresh groceries were the most common negative aspects to online grocery shopping in the UK. These factors may be part of why nearly ** percent of shoppers bought their groceries primarily in-stores, and only partially online.

Revenue from online grocery retailers in the United Kingdom reached a peak of almost 30 billion pounds in 2021. This figure is forecast to drop slightly in 2022, with a market size by revenue of 28.3 billion pounds.

Market Size statistics on the Online Grocery Retailers industry in United Kingdom

In the United Kingdom, Millennials are the most eager to buy their groceries online. According to a survey carried out in the second quarter 2023, ** percent of consumers in the country aged between 27 and 42 years old would buy grocery products mostly via e-commerce. Gen Z followed, as ** percent of the generational cohort preferred shopping for their groceries mostly online.

Snapshot img

UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is forecast to increase by USD 56.2 billion at a CAGR of 3.8% between 2024 and 2029.

The UK Grocery Retail Market is segmented by product (food and beverages, non food), distribution channel (hypermarkets and supermarkets, convenience stores, discount stores, online, others), sales channel (in-store, online delivery, click-and-collect), consumer segment (urban consumers, rural consumers, premium shoppers), product types (fresh produce, packaged foods, household goods, health and beauty), and geography (Europe: UK). This segmentation reflects the market's diversity, driven by increasing demand for Fresh Produce and Health and Beauty products, growing Online and Click-and-Collect channels in urban areas, and a mix of Hypermarkets and Discount Stores catering to both Premium Shoppers and Rural Consumers across the UK.
The Grocery Retail Market in the UK is witnessing significant growth, driven by the trend of rapid urbanization and the resulting increase in consumer spending. These trends are driving the industry to innovate and offer more personalized shopping experiences through unique store layouts and expanded product offerings such as online grocery delivery services.
However, the market faces challenges, including the threat from counterfeit grocery products or instant grocery, which can negatively impact consumer trust and brand reputation. Retailers must prioritize measures to ensure product authenticity and maintain transparency with customers to mitigate these risks.
Navigating this complex landscape requires a strategic approach, with a focus on building strong relationships with suppliers, implementing effective pricing strategies, and leveraging technology to enhance operational efficiency and customer engagement. Companies that can successfully address these challenges while capitalizing on the market's growth opportunities will be well-positioned for success in the dynamic and competitive Grocery Retail Market in the UK.

What will be the size of the UK Grocery Retail Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

In the dynamic UK grocery retail market, sustainability practices are increasingly shaping consumer behavior. Retailers are adopting store designs that prioritize energy efficiency and waste reduction. Customer experience is a key differentiator, with retailers investing in promotion optimization, loyalty programs, and personalized marketing. Consumer trends towards healthier eating and convenience drive product assortment decisions. Retail management focuses on supply chain optimization, retail analytics, and category management to meet demand. Grocery technology, including digital marketing, e-commerce logistics, and inventory control, is transforming food retailing.
Store formats are evolving to include omnichannel retail and demand forecasting to better serve customers. Brand management and social media marketing are essential for building customer loyalty and engagement. Shelf space optimization and category management are crucial for maximizing sales and profitability.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Food and beverages
  Non food


Distribution Channel

  Hypermarkets and supermarkets
  Convenience stores
  Discount stores
  Online
  Others


Sales Channel

  In-Store
  Online Delivery
  Click-and-Collect


Consumer Segment

  Urban Consumers
  Rural Consumers
  Premium Shoppers


Product Types

  Fresh Produce
  Packaged Foods
  Household Goods
  Health and Beauty


Geography

  Europe

    UK

By Product Insights

The food and beverages segment is estimated to witness significant growth during the forecast period.

In the dynamic grocery retail market, various entities shape the industry landscape. Hygiene standards are prioritized to ensure food safety, while value products cater to consumers' increasing demand for affordability. Warehouse management systems streamline operations, and seasonal produce offers freshness and variety. Free-from products, such as gluten-free and vegan, cater to diverse dietary needs. Self-checkout kiosks enhance the shopping experience, and convenience stores cater to on-the-go consumers. Dairy products, canned goods, and dietary supplements are essential staples, while premium and private label brands differentiate offerings. Meat products, dairy, and bakery items are popular, with sales forecasting and local sourcing ensuring freshness and availability.

Sales in the household goods segment

The online food and grocery shopping market in the United Kingdom recorded an annual decrease of 12 percent in 2022. That is well down on the previous year when e-shopping for food and groceries rose to popularity due to the COVID-19 pandemic. A slight increase in growth was forecast for 2023 as UK consumers become accustomed again to buying groceries online again.

Tesco.com topped the ranking of online grocery stores in the United Kingdom, generating an estimated 4.58 billion U.S. dollars in e-commerce net sales in 2024. Sainsburys.co.uk ranked second, with 3.8 billion U.S. dollars in online grocery sales. Online grocery market in the UK After skyrocketing into double-digit figures during the pandemic, the online share of food sales in the United Kingdom has stabilized post-pandemic. As of December 2024, approximately nine percent of all food retail sales were made online. Compared to the pandemic peak of 12 percent in January 2021, demand for online grocery in the UK has not waned and remained robust despite the return of in-store shopping. Online grocery shoppers In March 2024, a fifth of the UK population was purchasing food and drink online, a figure eight percentage points lower than the e-commerce penetration rate achieved at the height of the pandemic in March 2021. However, current penetration rates in the food and beverage e-commerce market are markedly higher than pre-pandemic. UK online shoppers were the most frequent buyers of fresh food and beverages online among their European counterparts in 2022.

Snapshot img

Online Grocery Market Size 2025-2029

The online grocery market size is forecast to increase by USD 1535.6 billion at a CAGR of 18.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing popularity and adoption of e-commerce platforms. This trend is particularly prominent in developed markets, where consumers value the convenience and time savings offered by online shopping. Another key driver is the rising demand for functional food and beverages, as consumers prioritize health and wellness in their dietary choices. End-user perception is also evolving, with online grocery shopping now seen as a viable and convenient alternative to traditional brick-and-mortar stores. However, challenges remain, including the need to ensure a seamless and efficient shopping experience, as well as addressing concerns around food quality and freshness. Companies seeking to capitalize on this market opportunity must focus on delivering a user-friendly online platform, investing in logistics and delivery infrastructure, and building trust with consumers through transparent communication and high-quality products. By staying abreast of these trends and addressing the challenges head-on, players in the market can effectively navigate this dynamic and competitive landscape.

What will be the Size of the Online Grocery Market during the forecast period?

Request Free SampleThe market has experienced significant growth in recent years, driven by the convenience and time-saving benefits it offers consumers. With the increasing adoption of digital platforms for ordering household products, online grocery delivery has become a preferred choice for tech-savvy consumers seeking a wide product selection and contactless delivery options. Small-scale grocers have joined the fray, leveraging digital technologies such as artificial intelligence (AI) and machine learning (ML) to enhance supply chain management and offer locally sourced groceries. Online payments have streamlined the checkout process, while delivery options have expanded to include drone deliveries in some regions. The market's size is projected to continue growing, as more consumers embrace the convenience of ordering groceries online and having them delivered to their doorstep. Overall, the market represents a dynamic and innovative space, where technology and consumer demand are driving new trends and shaping the future of grocery shopping.

How is this Online Grocery Industry segmented?

The online grocery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductFood productsNon-food productsTypeOne time customersSubscribersDelivery ModeHome deliveryClick and collectProduct TypeFresh produceBreakfast and dairySnacks and beveragesStaples and cooking essentialsOthersGeographyAPACChinaIndiaIndonesiaJapanEuropeFranceRussiaUKNorth AmericaUSCanadaSouth AmericaBrazilMiddle East and Africa

By Product Insights

The food products segment is estimated to witness significant growth during the forecast period.The market has gained significant traction in recent years, with consumers increasingly opting for the convenience and ease of shopping for food products online. Factors such as customization and personalization options, swift delivery processes, integrated return policies, and a wide range of products and brand choices are driving this trend. Leading global packaged food and beverage producers, including Nestle, Danone, PepsiCo, Mars, Coca-Cola, Kraft-Heinz, Abbott, and Mondelez, have recognized this shift and have established a strong online presence through their own websites and third-party retailers. Online grocery shopping offers consumers the ability to quickly and easily order items such as milk products, breakfast cereals, snacks and beverages, and fresh produce, with options for dietary filters and unique preferences. The integration of technology, such as secure payment gateways, AI recommendations, and mobile applications, enhances the shopping experience and saves time. With the increasing penetration of high-speed internet and the availability of last-mile delivery solutions, such as delivery drones and automated vehicles, deliveries are becoming faster and more reliable. Additionally, cashback offers, loyalty programs, subscription models, and membership programs offer incentives for repeat purchases and customer loyalty. Overall, the market is a growing segment, with e-commerce platforms providing a user-friendly interface, efficient delivery logistics, and predictive analytics for inventory management and demand forecasting.

Get a glance at the market report of share of various segments Request Free Sample

The Food products segment was valued at USD 309.70 billion in 2

Online grocery shopping is being driven by the convergence of several key trends. Immediate growth drivers include time scarcity and digital consumption, while novelty and environmental responsibility are factors that are likely to propel future growth. Read More

The Supermarkets industry has undergone something of a shift over the past decade – discounters Aldi and Lidl have penetrated the customer base of the traditional “Big Four” supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), with their low prices and improving quality of products resonating with price-conscious shoppers. Over the five years through 2024-25, supermarkets' revenue is forecast to dip at a compound annual rate of 1.1% to £192.1 billion, though it's expected to inch up by 0.6% in 2024-25. Grocery price inflation has eased in 2024-25, with this stabilisation supporting consumer confidence, which has sparked greater sales volumes across major supermarket chains. Over the five years through 2024-25, the cost-of-living crisis has constrained households’ budgets, with shoppers spending less on non-essentials, shopping around more and turning to discount supermarkets. The landscape for UK supermarkets has been characterised by intense competition and emerging consumer trends. Discount retailers like Lidl and Aldi have aggressively expanded their market presence by capitalising on streamlined supply chains and low operational costs, enticing budget-conscious shoppers. Their success has prompted traditional supermarkets to embark on price wars and promotional strategies like Aldi price matches, illustrating the sector's dynamic nature. Concurrently, loyalty programmes have proven instrumental in bolstering supermarkets' profitability. Tesco, for instance, reported exponential growth in its Clubcard membership, thereby solidifying its market share. Looking forward, consumer preferences for quick and convenient shopping will threaten the traditional weekly shop. Convenience stores are likely to benefit from the little, local and often trend, stealing sales away from supermarkets. Sustainability is a growing concern for both shoppers and supermarkets. As disposable incomes recover, shoppers will emphasise sustainably produced, sourced and packaged products. Supermarkets will invest heavily in decarbonising their operations by purchasing electric fleets. However, additional costs caused by hikes to employers’ National Insurance contribution outlined in the 2024 Autumn Budget will force supermarkets to pass on additional costs to consumers, threatening their price competitiveness. Over the five years through 2029-30, supermarkets' revenue is forecast to swell at a compound annual rate of 2.1% to £213.4 billion.

When asked in 2021 whether they would continue shopping for food online once the coronavirus (COVID-19) pandemic has subsided, an estimated third of consumers in the United Kingdom stated they would, but not as frequently. Just under a fifth of UK shoppers had no intention of buying groceries on the web post pandemic.

Online grocery shopping habits in the UK

Ever since the coronavirus crisis first took off in early 2020, it affected many UK consumers in the way they usually bought groceries. Some started stockpiling hygiene products, while others had their supermarket necessities delivered to their doorstep in order to avoid the crowds. By May of that year, over 30 percent of shoppers in the UK stated they had increased their online shopping activity for groceries. Some of the grocery items most purchased by UK shoppers on the web were alcoholic drinks and chilled foods.

What are some of the biggest grocery stores in Great Britain?

In Great Britain, there are many grocery stores that make up a fair chunk of the market, including Aldi, Waitrose, Iceland. In the past few years, however, Tesco was and has remained the unequivocal leader, accounting for a market share of just under 30 percent. Going head-to-head at roughly 15 percent of the market each, Sainsbury’s and Asda ranked second and third, respectively.

In 2021, the size of the UK grocery market stood at around *** billion British pounds. The market has been steadily growing since 2004 and is estimated to reach over *** billion British pounds by 2027. Grocery retail channels It was estimated that in 2027, supermarkets will be the largest sales channel for grocery retail with a value of almost ** billion pounds. Online channels are expected to amount to **** billion pounds. UK grocery market The five leading companies on the grocery market are Tesco, Sainsbury’s, Asda, Morrisons, and Aldi. It was only the German discounter Aldi that saw rapid growth and has proven to be a significant disruptive force on the market. On average, households in the UK spent **** British pounds on food and non-alcoholic drinks per week in 2020.

In the United Kingdom, Aldi, M&S Food, and Lidl were the most popular three supermarket chains in Q4 2024. All three topped the ranking with 78 percent of respondents having a positive opinion of the food retailer. Sainsbury's and Tesco came in second and third places and were popular with 74 percent and 72 percent of those polled in this study, respectively. UK grocery market The entire UK grocery market was worth almost 212 billion British pounds in 2021. Market leader Tesco operated over 4,100 stores in 2023. In comparison, mixed retailer M&S operated slightly over 1,050 stores in the UK. Marks & Spencer as a grocery retailer M&S is a mixed retailer and sometimes not even included in statistics about the UK grocery market. When viewed as a grocery store, the company had a market share of slightly over three percent as of August 2021. Compared other grocery and food retailers, M&S is only a minor player on the market. Since the first of September 2020, M&S grocery products can be ordered via the online grocery store Ocado.

Snapshot img

Instant Grocery Market Size 2025-2029

The instant grocery market size is forecast to increase by USD 131 billion, at a CAGR of 16% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of technology and changing consumer preferences. With the rise of online grocery shopping, consumers now demand greater order transparency and convenience. This trend is pushing grocery retailers to invest in advanced technologies such as artificial intelligence, machine learning, and automation to streamline operations and enhance the customer experience. However, keeping pace with these technological advancements poses a challenge for many players in the market. As new technologies emerge, companies must continuously adapt and innovate to remain competitive.
Additionally, ensuring seamless integration of these technologies with existing systems and processes can be a complex undertaking. To succeed, grocery retailers must prioritize digital transformation initiatives and invest in the right technologies to meet evolving consumer demands and stay ahead of the competition.

What will be the Size of the Instant Grocery Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The market continues to evolve, with dynamic market dynamics shaping its various sectors. Integral components, such as pick and pack, cold chain logistics, and dietary restrictions, are seamlessly integrated into the market's fabric. Organic produce, mobile ordering, and sustainable packaging are gaining traction, as consumers prioritize health and environmental concerns. Dairy products, pet food, personal care products, and household goods are among the numerous categories experiencing growth. Food waste reduction and subscription boxes are innovative solutions addressing sustainability and convenience. Last-mile delivery, seafood delivery, and meal kits cater to diverse consumer preferences. Warehouse automation, nutritional information, and meal kits are revolutionizing order fulfillment and inventory management.

Fresh produce delivery, frozen foods, and bakery goods are enhanced by advanced technologies, ensuring optimal quality and freshness. Customer service, pricing strategies, and targeted advertising are crucial elements in the market's competitive landscape. Data analytics, customer reviews, and promotional offers are essential tools for understanding consumer behavior and preferences. Baby products, e-commerce platforms, API integration, and food safety standards are additional facets of the market's intricate ecosystem. The ongoing unfolding of market activities underscores the need for continuous adaptation and innovation.

How is this Instant Grocery Industry segmented?

The instant grocery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Nonfood products
  Food products


Delivery

  Home delivery
  Click and collect


Type

  One-time purchasers
  Subscribers


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

The nonfood products segment is estimated to witness significant growth during the forecast period.

In the evolving grocery market, non-food products, including toiletries, bathroom cleaners, and kitchen supplies, hold a larger share than food items. With rising employment rates and income levels, consumers' lifestyles have changed, leading to an increased demand for convenience. This trend is driving the growth of instant grocery services, offering time-pressed individuals the ability to order non-food essentials online for delivery or pick-up. Cold chain logistics ensures the freshness and quality of these items, while mobile ordering and application development streamline the shopping experience. Dietary restrictions and preferences are catered to with organic produce and specialized offerings. Sustainable packaging and food waste reduction are also key considerations, appealing to eco-conscious consumers.

Pet food, personal care products, and household goods are essential categories within the non-food segment. Meal kits, frozen foods, and subscription boxes provide additional convenience for busy consumers. Payment gateways, inventory management, and customer service ensure a seamless shopping experience. Warehouse automation and last-mile delivery optimize operations, while food safety standards maintain product quality. Fresh produce delivery, dairy products, and meat and poultry are offered alongside canned go

In December 2023, the website of the grocer Tesco registered the highest desktop traffic to grocery sites in the United Kingdom, with 17.24 percent. In second place was asda.com with 13.43 percent of visits, followed in third place by Sainsbury's, with 12.4 percent.

The share of food retail sales made online in predominantly food stores in Great Britain saw its biggest growth in January 2021, when the coronavirus (COVID-19) containment measures were tightened in the United Kingdom. Since then, the proportion of online food retail slowly decreased and then remained stable at around nine percent in March 2025.

According to a June 2022 global survey, most e-shoppers reported rising prices for groceries being an issue while online shopping. Nearly 70 percent of shoppers in Brazil stated that increased food prices influenced their shopping behavior, while South Korea had the second-highest number of respondents reporting the issue, at 64 percent.

Online food market Worldwide, China is home to the largest online food delivery market by revenue. In 2022, China's online food delivery market was valued at roughly 310 billion U.S. dollars. The online food delivery market in the United States ranked second, with almost 185 billion U.S. dollars in revenue. The United Kingdom (UK) and India were among the leading countries, with 33 billion and 27 billion U.S. dollars, respectively. While China leads in revenue, online food delivery penetration is the highest in the UK. In 2022, almost three-quarters of UK shoppers purchased meals via the internet, whereas only slightly more than half of Chinese consumers had done the same.

Inflation hits grocery prices The impact of inflation on food prices can be seen throughout the world. In the United States, it has adversely affected online grocery since June 2021. For instance, year-on-year inflation for groceries stood at 13.6 percent in October 2022. Consumers in the UK are the most worried about rising food prices. In November 2022, eight out of ten UK shoppers expected grocery prices to rise further in the following months. In Europe, shoppers are changing their grocery purchasing habits due to inflation. Half of Europeans are trying private-label brands, and 35 percent are straying from their go-to brand. As a result of inflation, 14 percent are now shifting away from brick-and-mortar stores to online grocery shopping.

The average cost of a shopping basket, consisting of 79 items, was the lowest at the *********************** and amounted to ****** British pounds as of March 2025. It was over ** pounds cheaper than the corresponding range of goods at Waitrose. Below that, the second most expensive basket was the one offered by *****, an online supermarket operating in the UK. The UK grocery market In 2021, the entire grocery market of the United Kingdom was worth ***** billion British pounds. This figure was forecast to increase to over *** billion British pounds by 2027. Grocery stores Supermarkets are the most profitable store form currently in the UK. Sales generated by supermarkets came to around ** billion pounds. In comparison, discounters made close to ** billion in sales, while the online channel accounted for around 22 billion. Sainsbury’s operated**** supermarkets at the end of the 2023/24 financial year and another**** convenience stores.

The displayed data on online grocery & beverage shopping by store brand and generation shows results of the Consumer Insights Global survey conducted in the United Kingdom. As of March 2025, some 39 percent of Gen Z respondents stated that they had ordered groceries, beverages or meal kits online from Asda in the past 12 months. The survey was conducted in four waves in 2024 and 2025, among 24,174 respondents. Access millions of exclusive survey results with Statista Consumer Insights.