Australia’s online grocery sector analysis, Nielsen

Posted by AFN Staff Writers on 14th December 2016

Online grocery shopping is growing seven times faster than the rest of the Australian grocery market says the latest research from Nielsen.

According to Nielsen, online consumer spending is predicted to inject up to AUD $2 billion of incremental sales into the Australian grocery industry over the next five years.

The research reflects what Nielsen calls a ‘20-20-20’ growth opportunity with:

  • 20 per cent of Australians already buying at least some type of grocery product online.
  • 20 per cent being the current rate of annual sales growth
  • 20 per cent being the expected share of the AUD $10.6 billion growth ‘prize’ for the grocery industry over the next five years

One in four Australians say they order grocery products online and 55 per cent say they are willing to do so in the future.

Kosta Conomos, Executive Director, Retail Industry Group at Nielsen Australia, said up until now it has been hard to find examples of retailers in Australia’s FMCG industry who have mastered their offer in the online grocery space.

“Australian shoppers are growing accustomed to the benefits of digital in other retail settings and are beginning to expect them in grocery as well,” Conomos said.

“Retailers are now facing unprecedented pressure to maintain profit margins by keeping up with these increasingly demanding, empowered and connected consumers. Those that are winning in this space are leveraging technology to enhance the overall shopping experience and meet consumers’ evolving desire,” she said.

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