Grocery market in the UK

The UK Grocery eCommerce market is predicted to reach US$22,242.4 million by 2024 and accounts for 13.1% 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 2024-2028) will be 10.9%, resulting in a projected market volume of US$33,585.8 million by 2028. Within the Grocery market ECDB considers the following two sub-markets: Food and Beverages.

Market development

eCommerce revenue development in the Grocery market in the UK

The UK Grocery eCommerce market is predicted to reach US$22,242.4 million by 2024 and accounts for 13.1% 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 2024-2028) will be 10.9%, resulting in a projected market volume of US$33,585.8 million by 2028. Within the Grocery market ECDB considers the following two sub-markets: Food and Beverages.

eCommerce revenue development in the Grocery market in the UK

in million US$

eCommerce revenue growth in the Grocery market in the UK

in %

Net eCommerce revenue split by sub-category

in %
2020 2021 2022 2023 2024 2025 2026 2027
Revenue (in mUS$) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Growth (in %) 30.0 65.6 5.9 11.8 39.9 55.0 33.1 50.0

Online share

eCommerce online share of the total Grocery market in the UK

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 9.9% and will increase by an average of 11.9% to 15.5% by 2028.

eCommerce online share of the total Grocery market in the UK

in %
2020 2021 2022 2023 2024 2025 2026 2027
Online share (in %) 12.6% 17.6% 1.8% 28.3% 35.0% 3.1% 39.0% 41.8%

Top stores

Top five Grocery online stores in the UK by net sales 2023

With sales in the UK Grocery market, tesco.com generated a revenue of US$4,266.1 million in 2023, 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 2023. 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.

eCommerce net sales generated in the Grocery market in the UK in 2023

in million US$
Filtered revenue / share
Global revenue
Growth
US$900.0m
20.7%
US$8,300.0m 8.3%
US$550.0m
12.0%
US$4,600.0m 12.4%
US$470.0m
3.9%
US$1,190.0m 33.6%
US$430.0m
20.6%
US$2,122.0m 18.0%
US$370.0m
20.7%
US$1,814.0m 12.6%

Payment Methods

Top 5 offered payment methods in the UK Grocery market

With 97.0% VISA the most commonly offered payment method of all online stores in the UK Grocery eCommerce market in 2023. Like VISA Mastercard with a share of 97.0% and American Express with a share of 69.8% the payment type Cards is the most common used by online retailers in in the UK Grocery eCommerce market in 2023. Other commonly used payment methods in that market are PayPal (E-wallets) with 72.9% and Apple Pay (E-wallets) with 25.1% of stores offering that payment method to the clients.

Top 5 offered payment methods in the UK Grocery market

in %

See all stores offering


Shipping Service Provider

Top 5 offered shipping providers in the UK Grocery market

Despite DPD's dominant position with 50.8% of online stores opting for its services, the UK Grocery eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including Royal Mail, DHL, Parcel Force, and APC Postal Logistics, hold smaller but significant shares, contributing to a dynamic and fragmented market.

Top 5 offered shipping providers in the UK Grocery market

in %

Market definition

Definition of the Grocery market

Market definition: Grocery The category Grocery contains the online trade of food (e.g. fruits, vegetables, dairy products, ice creams, cereals, sweets) and beverages (e.g. juices, water, coffee, wine, liquor, beer). The following products and services are not part of this category: ready-to-eat meal delivery, restaurant or bar pick-up or food supplements. All monetary figures refer to the annual gross revenue and do not factor in shipping costs.

In-scope

  • Food (e.g. fruits, vegetables, dairy products, ice creams, cereals, sweets)
  • Beverages (e.g. juices, water, coffee, wines, liquors, beers)

Out-of-scope

  • Ready-to-eat meal delivery
  • Restaurant or bar pick-up
  • Food supplements
  • Pet food