Setting up store: Revenue has risen rapidly, despite the industry remaining underdeveloped

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 at an annualised 12.3% over the five years through 2018-19, to reach $3.1 billion. This includes an increase of 11.6% 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 more.

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

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
  • Industry Report - Industry SWOT Analysis Chapter

    The Online Grocery Sales industry is in the growth stage of its life cycle. Industry value added (IVA), a measure of the industry's contribution to the wider economy, is projected to grow by 12.4% annualised over the 10 years through 2023-24. This represents an underperformance relative to the economy, with GDP forecast to grow by an annualised 2.7% over the same period. This indicates that the industry is growing at a faster pace than the overall economy.The products sold by the industry differ across operators. Retailers such as Grocery Run mainly sell non-perishable and long-life grocery items in bulk at largely discounted prices. Con...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
  • 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..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    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 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

  • 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
  • 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
    Woolworths Group Limited, Wesfarmers Limited,
  • Table: Woolworths Group Limited - financial performance
  • Table: Wesfarmers 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?

    The Online Grocery Sales market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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.

    Contact Us

    Want to speak to a representative? Call us.