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The State of Online Grocery
Retail in Europe 2015
Published: July 8th, 2015
The egrocery market is growing fast with
an expected value of €80 billion by 2018
4 trends are shaping the egrocery indust...
1. Growing Diversity of Players
•Traditional Players (Brick and Click)
•Pure Players
•Technology, Ecommerce and Logistics
Giants Expanding to Egrocery
2. Growing
Attention to
Omnichannel
Tesco (UK) aims to have every arm
of its business featuring a digital
aspect.
Walmart ...
3. Increasing Number of
Mobile Transactions
Mobile purchases will account for €100
billion by the end of 2015.
3 out of 10...
4. Delivery Model Optimization
vs
Home Delivery Pick-up
How is Egrocery Doing Across Different
Countries?
The UK
The Netherlands
Germany
France
The US
India
The UK
Grocery retail market size: £174.5 billion
Online grocery retail market size: £7.7 billion
Penetration of online gr...
Market highlights
• Tesco is cutting back on physical
store openings in order to focus on
the online channel.
• Asda plans...
The Netherlands
Grocery retail market size: €33.8 billion
Online grocery retail market size: €0.5 billion
Penetration of o...
• Albert Heijn is the current
undisputed egrocery market
leader controlling 53% of the
market.
• The Dutch online grocery
...
Germany
EU’s 2nd
largest
ecommerce
market
Egrocery
represents
0.8% of all
grocery
sales
38%
egrocery
market
growth in
2014...
Market highlights
• Allyouneedfresh.de, an online grocery retailer
owned by DHL, is bringing new standards to the
egrocery...
France
Egrocery
represents
3.6% of all
grocery
sales (€8.8
billion)
Traditional
players
dominate
the
egrocery
market
Large...
Market highlights
• Pick-up points are used to handle 8
out of 10 online grocery orders in
France.
• 80% of the French can...
The US
Grocery retail market size: $594.4 billion
Online grocery retail market size: $18.0 billion
Penetration of online g...
Market highlights
• The US market as a whole, only
has a small part of all retail
sales completed online.
• The picture is...
The emerging market:
IndiaNo. of online shoppers: 35 million
Grocery retail market size: $365 billion
Online grocery retai...
Market highlights
• Favorable demographic and
economic conditions, spread
of internet and the absence
of strong traditiona...
Syndy enables the world’s most
efficient exchange of product
content between Retailers and
Suppliers.
To download the full...
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The State of Online Grocery Retail in Europe 2015

Syndy’s most recent study analyses the latest egrocery developments across the hottest markets in Europe including the Netherlands, Germany, France and the United Kingdom as well as the United States. In this report, we also overview the growing Indian egrocery market.

The State of Online Grocery Retail in Europe 2015

  1. 1. The State of Online Grocery Retail in Europe 2015 Published: July 8th, 2015
  2. 2. The egrocery market is growing fast with an expected value of €80 billion by 2018 4 trends are shaping the egrocery industry
  3. 3. 1. Growing Diversity of Players
  4. 4. •Traditional Players (Brick and Click)
  5. 5. •Pure Players
  6. 6. •Technology, Ecommerce and Logistics Giants Expanding to Egrocery
  7. 7. 2. Growing Attention to Omnichannel Tesco (UK) aims to have every arm of its business featuring a digital aspect. Walmart (US) plans to spend up to $1.5 billion in 2015 to offer the best omnichannel experience to its consumers. Tesco’s 3D virtual store
  8. 8. 3. Increasing Number of Mobile Transactions Mobile purchases will account for €100 billion by the end of 2015. 3 out of 10 online transactions are completed via a mobile device.
  9. 9. 4. Delivery Model Optimization vs Home Delivery Pick-up
  10. 10. How is Egrocery Doing Across Different Countries? The UK The Netherlands Germany France The US India
  11. 11. The UK Grocery retail market size: £174.5 billion Online grocery retail market size: £7.7 billion Penetration of online grocery shopping (% of the total population): 25% Online shopping and Internet usage Online grocery retail Ecommerce is the fastest growing retail channel in the UK UK’s egrocery market is expected to double by 2019 UK’s egrocery market is the most developed in the EU, worth £7.7 billion
  12. 12. Market highlights • Tesco is cutting back on physical store openings in order to focus on the online channel. • Asda plans to roll out 1,000 pick-up points, and make same-day procurement the norm. • Sainsbury’s aims to put personalization at the center of its online experience. • Ocado, the world’s largest pure online grocery player, reported its first profitable year in 2014. • Ocado started leveraging its know- how by offering its infrastructure, and operating capabilities to power third- party online retail enterprises.
  13. 13. The Netherlands Grocery retail market size: €33.8 billion Online grocery retail market size: €0.5 billion Penetration of online grocery shopping (% of the total population): 15% Fastest growing egrocery market in the EU, driven by traditional retailers The pick-up point network in the Netherlands grew 680% since January 2013 71% of the total population shops online Online shopping and Internet usage Online grocery retail
  14. 14. • Albert Heijn is the current undisputed egrocery market leader controlling 53% of the market. • The Dutch online grocery retail market is expected to catch up with the leading markets, like the UK and France, within the next 2-3 years. Market highlights • New egrocery market players: from big retailers (such as Jumbo) to smaller retailers (like DEEN), to new start-ups, will be the key factor driving growth of the Dutch egrocery market. • Following Instacart’s success in the US, entrepreneurs are trying to introduce similar egrocery concepts to the Netherlands.
  15. 15. Germany EU’s 2nd largest ecommerce market Egrocery represents 0.8% of all grocery sales 38% egrocery market growth in 2014 Grocery retail market size: €247.2 billion Online grocery retail market size: €2 billion Penetration of online grocery shopping (% of the total population): 11% Online shopping and Internet usage Online grocery retail
  16. 16. Market highlights • Allyouneedfresh.de, an online grocery retailer owned by DHL, is bringing new standards to the egrocery market in Germany. Its reliable delivery network (provided by DHL) allows consumers to track their orders, personalize their preferences, and have groceries delivered within the same day. • Traditional retailers - EDEKA and REWE are investing significantly to expand their online offerings. • Amazon and eBay are the most popular choices for consumers when purchasing CPG products online.
  17. 17. France Egrocery represents 3.6% of all grocery sales (€8.8 billion) Traditional players dominate the egrocery market Largest pick- up point network in Europe (3000+) Grocery retail market size: €231.0 billion Online grocery retail market size: €8.4 billion Penetration of online grocery shopping (% of the total population): 11% Online grocery retail Online shopping and Internet usage
  18. 18. Market highlights • Pick-up points are used to handle 8 out of 10 online grocery orders in France. • 80% of the French can reach a pick-up point within 10 minutes from their home or office. • Casino Group leads the online grocery sector with a 25% market share, followed by E.Leclerc with 18%. • Houra.fr, launched in 2000, was the first online marketplace for groceries in France. The company claims to offer the largest online grocery assortment in the country with more than 55,000 products.
  19. 19. The US Grocery retail market size: $594.4 billion Online grocery retail market size: $18.0 billion Penetration of online grocery shopping (% of the total population): 20% Online shopping and Internet usage Egrocery accounts for 3% of all grocery retail sales Pure online players lead way in egrocery Membership models, like Amazon Prime, are driving the adoption of online grocery shopping Online grocery retail
  20. 20. Market highlights • The US market as a whole, only has a small part of all retail sales completed online. • The picture is completely different in large metropolitan areas (New York, L.A., Seattle) where most of the online grocery players operate. • Walmart has crafted a new digital strategy (planning to invest between $1.2 and $1.5 billion in 2015) in order to deliver the best omnichannel experience to consumers. • Pure online players to watch in the US:  Instacart  AmazonFresh  FreshDirect  Peapod  Google Express  Jet.com • Kroger, one of the largest supermarket chains in the US, is growing its presence online through acquisitions.
  21. 21. The emerging market: IndiaNo. of online shoppers: 35 million Grocery retail market size: $365 billion Online grocery retail market size: $100 million Stalls (Kiranas), mini marts and kiosks account for 98% of all grocery sales Egrocery market is expected to reach the value of $10 billion by 2020 VC’s invested $100 million to egrocery startups across 2014 – 2015 Growth potential • By 2020 the market is expected to grow more than 100 fold. • India’s immense number of Internet users will be a decisive factor driving online grocery adoption. • Ecommerce giants Flipkart and Snapdeal have already started adding grocery products to their online ranges and Amazon.in launched a gourmet and specialty food store in October 2014 Online shopping and grocery retail
  22. 22. Market highlights • Favorable demographic and economic conditions, spread of internet and the absence of strong traditional supermarket chains operating online, created an opportunity for a number of innovative pure online players to emerge in the egrocery market. • BigBasket.com is the largest and best-known online supermarket in India. The pure online player currently operates in six major cities and had $40 million in revenue in 2014. • Popular Indian egrocers like Grofers, Pepertap along with the ecommerce giant Amazon, are running new initiatives to bring the 14 million Kirana shops and their assortments online.
  23. 23. Syndy enables the world’s most efficient exchange of product content between Retailers and Suppliers. To download the full report please visit our website:

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