Switched on: Revenue is booming due to the accelerating uptake of online grocery shopping

IBISWorld’s Online Grocery Sales market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


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 there are signs of significant growth potential. Over the five years through 2016-17, industry revenue is projected to rise by an annualised 15.8%, to reach $2.7 billion. Adoption of online grocery shopping has been slow, as Australian consumers have been largely satisfied with the current offering provided by bricks-and-mortar stores. The extensive networks of the major supermarket chains, Coles and Woolworths, have contributed to the underdevelopment of the industry, as most consumers generally live close to a grocery store. Furthermore, consumers often prefer to physically inspect grocery items such as fruit, vegetables, meat and eggs prior to purchasing...

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What is the Online Grocery Sales industry?

The majority of Australians have access to online order and delivery services. The industry’s largest markets by size are the major population centres of Sydney, Melbourne and Brisbane. The relative density of these major cities makes it economical for small and large players alike to cater to them.

Compared with the population distribution of Australia, remote areas and states with restrictive trading hours are more important to the industry. Remote communities relied on mail and phone ordering for bulk good shipment before more convenient online ordering became available. These customers have largely transferred over seamlessly.

The industry generates a disproportionate share of revenue in Western Australia because of the state’s more restrictive trading hours. Thi...

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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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    New Zealand Special Report

    Products & Brands

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

    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
  • 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
  • Dairy Produce Wholesaling
  • Data Processing and Web Hosting Services
  • Fruit and Vegetable Wholesaling
  • General Line Grocery Wholesaling
  • General Warehousing and Cold Storage
  • Road Freight Transport

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

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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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