Ten leading global online grocery markets are predicted to experience combined growth of $227 billion by 2023, representing a CAGR of 20%, according to new figures unveiled by IGD today.
As the global leader in grocery eCommerce, China will grow at a 31% CAGR over the next five years, taking market share from 3.8% to 11.2%, IGD said. Over the next five years, the Chinese online grocery market will grow by the same size as the entire combined market of all ten countries in 2018.
IGD also forecasts extensive growth in the US with online set to more than double its market share. Market share will grow to 3.5%, creating an additional $37bn opportunity for American retailers and manufacturers.
IGD’s research shows that around the globe, online grocery market growth is being driven by the twin enablers of rapidly evolving shopper expectations and exciting tech innovations. Shopper expectations of price, quality, choice, convenience, speed, personalisation, health, information and empowerment are changing fast, and the online channel is well placed to deliver against these.
Commenting on online growth in Asia, IGD Asia’s Programme Director Shirley Zhu said: “China, Japan and South Korea are the Asian markets leading the way in online grocery shopping, and we’re seeing significant market share penetration in these three countries. They lead the way globally in terms of market share, and in 2023 all three will be nearing double digit share for online grocery, with South Korea over 14%.”
First published in Retail Tech Innovation