Acquired taste: Despite the industry remaining underdeveloped, revenue has rapidly risen

IBISWorld’s Online Grocery Sales market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.


Industry Threats & Opportunities

  • Online grocery retailers have been increasingly targeting time-poor, tech-savvy consumers
  • Retailers have been experimenting with delivery options to make online grocery shopping easier
  • Retailers are anticipated to capitalise on the growing use of mobile devices

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    Industry Analysis & Industry Trends

    The Online Grocery Sales industry is yet to achieve anything close to the scale of the overall online retail sector, but it has significant potential for growth. Industry revenue is expected to rise by an annualised 14.2% over the five years through 2017-18, to reach $3.1 billion. This includes an increase of 11.8% in the current year. Australian consumers have been slow to take up online grocery shopping, as they have been largely satisfied with the current offerings provided by bricks-and-mortar stores. The extensive networks of the major supermarket chains, Coles and Woolworths, have contributed to the industry remaining underdeveloped, as most consumers generally live close to a grocery store...

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    What is the Online Grocery Sales industry?

    While online penetration has been strong across many retailing industries, consumers have been slower to adopt the services of the Online Grocery Sales industry. Although industry revenue is expected to grow by an annualised 14.2% over the five years through 2017-18, Australia’s uptake of online grocery shopping has been slow compared with other developed countries, such as the United Kingdom. However, demand has started to rise rapidly as consumer trends and service options have changed. Industry revenue is forecast to increase by 11.8% in 2017-18, to total $3.1 billion.

    Slow adoption

    Australian consumers have generally been reluctant to shop online for their weekly grocery needs, as most are satisfied with existing bricks-and-mortar supermarkets. The...

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    Additional Insights for the Online Grocery Sales Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Online Grocery Sales Industry are

  • Ability to control stock on hand
  • Ability to franchise operations
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Consumer sentiment index in the Online Grocery Sales industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Fresh food
    Pantry, convenience and frozen foods
    Non-food products
    Dairy and eggs
    Pet products
    Meal kits
    Examples of brands in this Industry

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer sentiment index
  • Demand from food retailing
  • Average weekly hours worked
  • Internet connections

  • Current Performance
  • Slow adoption
  • Growing demand
  • Innovative delivery options
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation and profit
  • Industry innovation
  • Table: Online Grocery Sales Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Grocery Sales Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer System Design Services
  • Courier Pick-up and Delivery Services
  • Dairy Produce Wholesaling
  • Data Processing and Web Hosting Services
  • Fruit and Vegetable Wholesaling
  • General Line Grocery Wholesaling
  • General Warehousing and Cold Storage

  • Products & Services
  • Pantry, convenience and frozen foods
  • Fresh food
  • Non-food products
  • Dairy and eggs
  • Beverages
  • Pet products
  • Delivery
  • Meal kits
  • Chart: Online Grocery Sales Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 55
  • Consumers aged under 35
  • Consumers aged over 55
  • Chart: Major Market Segmentation for the Online Grocery Sales Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Online Grocery Sales

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Grocery Sales Industry

  • Industry Globalization
    Major Companies
    Woolworths LtdWesfarmers Limited
  • Table: Woolworths Ltd - financial performance
  • Table: Wesfarmers Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Online Grocery Sales Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Online Grocery Sales Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Click And Collect
  • Service that allows consumers to order products online and collect them at a physical store or affiliated retail outlet.
  • Dark Store
  • A facility that resembles a conventional supermarket but is not open to the public, housing goods used to fulfil orders placed online.
  • Order Fulfilment
  • Aggregating products as ordered by the customer in a warehouse of distribution centre.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Online Grocery Sales:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Online Grocery Sales market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Online Grocery Sales, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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