Grocery market in the UK

The UK Grocery eCommerce market is predicted to reach US$23,071.1 million by 2025 and accounts for 13.7% of the total eCommerce market in the United Kingdom. It is expected to increase over the next years. The expected compound annual growth rate for the next four years (CAGR 2025-2029) will be 11.0%, resulting in a projected market volume of US$34,992.6 million by 2029. Within the Grocery market ECDB considers the following two sub-markets: Food and Beverages.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the UK Grocery retail market, the online share is 11.2% and will increase by an average of 10.3% to 16.6% by 2029.

With sales in the UK Grocery market, tesco.com generated a revenue of US$4,976.9 million in 2024, which means it is the leading online store in this market. The Grocery ranking of the United Kingdom is based on all online stores that generated sales in this market in 2024. Due to a country- and category-dependent approach, both national and international online stores can be part of the ranking. The graph shows a filtered revenue. It only includes national sales within the respective market.

With 94.3% VISA the most commonly offered payment method of all online stores in the UK Grocery eCommerce market in 2024. Like VISA Mastercard with a share of 94.3% and American Express with a share of 68.9% the payment type Cards is the most common used by online retailers in in the UK Grocery eCommerce market in 2024. Other commonly used payment methods in that market are PayPal (E-wallets) with 69.9% and Apple Pay (E-wallets) with 30.6% of stores offering that payment method to the clients.

Despite DPD's dominant position with 46.5% of online stores opting for its services, the UK Grocery eCommerce market in 2024 remains diverse and competitive. Several other shipping service providers, including Royal Mail, DHL, Parcel Force, and Own delivery service, hold smaller but significant shares, contributing to a dynamic and fragmented market.