Almost half of Australian consumers (48%) buy at least some of their groceries online, with 10% now ordering most or all groceries via the internet, according to a new report released by enterprise marketplaces, thing commerce, and unified commerce platform, Spryker, in partnership with market research firm, Appinio.
The Australian Online Grocery Report 2022 found that in total, almost one-quarter (23%) of Australian household food budgets is now spent ordering online.
IBISWorld data values the Australian grocery market at $125 billion, highlighting substantial opportunity for retailers offering services in online grocery shopping. Almost one in five respondents (18%) said they see themselves buying most or all of their groceries online within two years.
Currently, shoppers in the 25 to 44 age group are most likely to order online and spend the highest percentage of their grocery budget online compared to other age groups. However, those in older age groups (45 to 65) match the younger groups in terms of the total amount spent online – despite this being a lower overall percentage of their grocery budgets.
Respondents in the 55 to 65 age bracket were most likely to cite the desire to avoid crowded supermarkets and minimise the risk of contracting Covid as a motivation for shopping online.
Despite the market expanding, online retailers face one key hurdle with 75% of respondents’ grocery budgets spent offline and 88% of shoppers see in-store supermarket shopping as something pleasant.
“Our latest research has shown that Australian shoppers are most focused on lower costs and better product selection when it comes to buying online. Given that the in-store shopping experience is a positive one for most shoppers, tempting them to buy more groceries online will pose a challenge for many retailers. But it’s also a huge opportunity,” Spryker co-founder and CEO, Boris Lokschin (pictured) said.
“Retailers that are working with composable commerce solutions will be best prepared to grab market share in this sophisticated and dynamic grocery market. Their focus must be on delivering a seamless online shopping experience that exceeds consumers’ expectations, and with a best-of-breed approach, retailers can have the flexibility to adjust to changing customer needs.
“Whether offering wider product choices, flexible delivery and collection options, or uniting with on-demand delivery partners, the Australian online grocery market has significant growth potential for organisations willing to provide a top digital commerce experience.”