Online Grocery Sales in Australia - Market Research Report

error_outline Covid-19 Impact Update - Online Grocery Sales in Australia

IBISWorld's analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result of the global COVID-19 pandemic:

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Revenue in the Online Grocery Sales industry is forecast to increase by 56.0% in 2019-20, adjusted up from 32.3%. For more detail, please see the Current Performance chapter.

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Usage of online grocery shopping platforms is expected to be permanently affected by the COVID-19 epidemic. For more detail, please see the Industry Outlook chapter.

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The industry's buying demographics are expected to change slightly, as older Australians increasingly take up online grocery shopping to reduce exposure risks. For more detail, please see the Major Markets chapter.

Note: The content in this report is currently being updated to reflect the trends outlined above.

Online Grocery Sales industry trends (2014-2019)

poll Average industry growth 2014–2019: -1.0%

The Online Grocery Sales industry is yet to achieve the scale of the overall online retail sector, but it has made strong inroads over the past five years. Industry revenue is expected to rise at an annualised 29.7% over the five years through 2019-20, to total $5.8 billion. Despite some consumers' initial reluctance to shop for groceries online, demand has grown strongly over the past five years. While ordering groceries online is generally straightforward, receiving these products is often not as simple. Due to the perishable nature of some of the industry's products, refrigeration and timely delivery are important. However, the introduction of click and collect services has significantly benefited the industry. Consumers have demonstrated a notabl...
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Online Grocery Sales industry outlook (2019-2024)

poll Average industry growth 2019-2024: x.xlockPurchase this report or a membership to unlock the average company profit margin for this industry.

The Online Grocery Sales industry still has significant potential for growth, with revenue forecast to increase at an annualised XX.X% over the five years through XXX-XX, to total $X.X billion. While the industry is projected to continue performing well over the next five years, revenue growth is forecast to increase at a slower rate than over the previous five-year period. Additionally, adoption of industry services has been rapid, but is forecast to slow slightly over the next five years. However, Kaufland's decision not to enter the Supermarkets and Grocery Stores industry is expected to support industry demand over the period. Industry competition is projected to slightly decrease over the next five years. Major players Coles and Woolworths are w...
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Online Grocery Sales industry statistics

  • business Number of Businesses: 2,572
  • poll Average Industry Profit Margin: x.x%
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  • supervisor_account Industry Employment: 20,271

Biggest companies in the Online Grocery Sales industry

The companies holding the largest market share in the Online Grocery Sales in Australia industry include Woolworths Group Limited, Coles Group Limited and Grocery Delivery E-Services Australia Pty Limited.

  • pie_chart Woolworths Group Limited Market Share: x.x%
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  • pie_chart Coles Group Limited Market Share: x.x%
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  • pie_chart Grocery Delivery E-Services Australia Pty Limited Market Share: x.x%
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What is Online Grocery Sales industry?

Industry Definition

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 and Services

  • 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

Market research report - table of contents

Industry Definition

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.

Main 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

Similar Industries

Additional Resources

Industry Statistics Snapshot

Industry Structure

Executive Summary

Key External Drivers

Real household disposable incomes can influence demand for groceries sold online. Slow income growth or falls in disposable income can prompt consumers to...
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Real household disposable income
Consumer sentiment index
Average weekly hours worked
Internet subscribers

Current Performance

Profit and participation
Meal kits
 Chart: Revenue Growth

Industry Outlook

Industry innovation
 Table: Online Grocery Sales in Australia - Market Research Report Industry Revenue Outlook

Industry Life Cycle

Life Cycle Reasons
 Chart: Benchmarking - Online Grocery Sales in Australia - Market Research Report Industry Lifecycle vs The Economy

Supply Chain

Key Buying Industries

Consumers in Australia






Key Selling Industries

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

Products & Services

Australians tend to buy heavy and bulky grocery products online, often those with long storage lives. Customers tend to shop online to meet their needs fo...
Consumers aged under 35
Consumers aged over 55




Demand Determinants

Demand for groceries largely moves in line with trends in population growth and the number of households. However, variations in disposable income levels ...
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Major Markets

Consumers aged under 35
Consumers aged over 55





 Chart: Major Market Segmentation for the Online Grocery Sales in Australia - Market Research Report Industry

International Trade

Business Locations

Chart: Business Locations by State Chart: Business Locations by State

Market Share Concentration

The industry is highly concentrated, with the top four companies in the industry accounting for just under 85% of revenue. Market share concentration has ...
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Key Success Factors

Cost Structure Benchmarks

Profit, Purchases, Wages, Other Costs
 Chart: Cost Structure Benchmarking – Sector vs Online Grocery Sales in Australia - Market Research Report

Basis of Competition

Internal competition
External competition

Barriers to Entry

 Table: Barriers to Entry Checklist for the Online Grocery Sales in Australia - Market Research Report Industry

Industry Globalization

Woolworths Group Limited is one of Australia's largest retailers. The company is active in multiple retail segments, such as food and groceries (Woolworth...
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Woolworths

 Table: Woolworths - financial performance

Coles Group

 Table: Coles Group - financial performance

HelloFresh Australia

 Table: HelloFresh Australia - financial performance

Capital Intensity

The Online Grocery Sales industry is moderately capital-intensive. For every dollar spent on capital costs, players spend an estimated $6.28 on wages. Unl...
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 Chart: Level of Capital Intensity for the Online Grocery Sales in Australia - Market Research Report Industry
 Chart: Tools of the Trade: Growth Strategies for Success

Technology & Systems

Revenue Volatility

Chart: Volatility vs Industry Growth Chart: Volatility vs Industry Growth

Regulation & Policy

Industry Assistance

Table: Industry data Table: Industry Data for the Online Grocery Sales in Australia Industry

Industry Revenue (2007-2026)
Industry Gross Product (2007-2026)
Establishments (2007-2026)
Businesses (2007-2026)
Employment (2007-2026)
Exports (2007-2026)
Imports (2007-2026)
Wages (2007-2026)
Domestic Demand (2007-2026)

Table: Annual Percentage Change for Key Industry Data Table: Annual Percentage Change for Key Industry Data

Table: Key Ratios for Industry Key Dat Table: Key Ratios for Industry Key Data

Table: Industry Financial Ratios Table: Industry Financial Ratios

Liquidity Ratios
Coverage Ratios
Leverage Ratios
Operating Ratios
Cash Flow & Debt Service Ratios (% of Sales)
Assets, %
Liabilities, %

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Included in Report

  • Industry Financial Ratios
    Industry Financial Ratios
  • Revenue Forecasts
    Revenue Forecasts
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions
  • Porter's 5 Forces Analysis
    Porter's 5 Forces Analysis

Why buy this report on the Online Grocery Sales industry?

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This report on Online Grocery Sales in Australia:

  • 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 in Australia 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 in Australia, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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