Research from Brick Meets Click (BMC) has revealed that online grocery sales will grow at 13% each year, outperforming the 1.3% CAGR expected in-store.
Online grocery sales are expected to reach more than 8% by the end of 2022, according to BMC, which gathered the results from a market model it developed over the past five years that incorporates market, competitor and shopper elements from its grocery insights platform, Grocery IP.
The forecast covers all departments sold by brick-and-mortar grocers across fresh and packaged goods, excluding only pharmacy. The forecast for online sales is driven by a framework that divides the market into two distinct types – pure-play versus in-market providers – and accounts for key growth drivers related to accessibility, attractiveness and acceptability.
Growth rates will be affected by not just the total number of online grocery rivals, but also the range of value propositions offered by different trade channels like club, grocery and pet, as well as the various fulfillment options like delivery or pickup.