Click and collect: Revenue has risen rapidly, despite the industry remaining underdeveloped

The Online Grocery Sales industry is yet to achieve the scale of the overall online retail sector, but it has significant potential for growth and has begun to make inroads over the past five years. Industry revenue is expected to rise at an annualised 21.7% over the five years through 2018-19, to total $3.3 billion. This trend includes an increase of 24.6% in the current year. Despite an initial reluctance to shop for groceries online, demand has grown strongly over the past five years. Online grocery retailers are increasingly targeting busy tech-savvy consumers that appreciate the convenience of being able to order at any time for direct delivery. While ordering groceries online is generally straightforward, receiving these products is often not as more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Online grocery retailers have been increasingly targeting busy tech-savvy consumers
  • The meal kits segment has expanded, aided by the strong revenue performance of HelloFresh
  • Retailers are anticipated to capitalise on the growing use of mobile devices
  • Industry Report - Starting a New Business Chapter

    The barriers to entry into the industry are moderate, and these have increased over the past five years. To enter the industry, participants need to secure funding to develop a website and lease distribution space. They also need to establish distribution agreements with wholesalers for products and market their business to consumers. Another requirement is the ability to find skilled IT workers to build and maintain a consumer-friendly web presence.Industry participants require access to a range of products to expand, which can be a major barrier. In addition, they need to increase their delivery coverage area to be competitive, as major players now deliver nationwide. Col...purchase to read more.

    Additional Insights for the Online Grocery Sales Industry

    IBISWorld has determined the most important Key Success Factors for the Online Grocery Sales are:

  • Ability to control stock on hand
  • Economies of scale
  • 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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    What's in this report

    What is the Online Grocery Sales Industry?

    Companies in the industry sell grocery items online. Industry participants are either online-only retailers or bricks-and-mortar stores with an online presence. Online sales of beer, spirits and wine are excluded from the industry.

    Industry Products
  • Fresh food
  • Pantry, convenience and frozen foods
  • Beverages
  • Non-food products
  • Dairy and eggs
  • Pet products
  • Delivery
  • Meal kits
  • Industry Activities
  • Meat, fish and poultry retailing
  • Dairy products and egg retailing
  • Fruit and vegetable retailing
  • Bread and cake retailing
  • Confectionery retailing
  • Beverage retailing
  • Frozen food retailing
  • Non-food retailing
  • Meal kit retailing
  • Delivery services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer sentiment index
  • Average weekly hours worked
  • Internet subscribers

  • Current Performance
  • Increased adoption
  • Profit and participation
  • Meal kits
  • 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

  • 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
  • Meal kits
  • Pet products
  • Beverages
  • Delivery
  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Online Grocery Sales

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    Woolworths Group Limited, Coles Group Limited, Grocery Delivery E-Services Australia Pty Limited,
  • Table: Woolworths Group Limited - financial performance
  • Table: Coles Group Limited - financial performance
  • Table: Grocery Delivery E-Services Australia Pty Limited - financial performance

  • 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
    Table: Industry Data for the Online Grocery Sales Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • What Our Customers Say

    Why buy this report?

    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.

    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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