More than one in five British households did a food shop online in September, marking a return to popularity not seen since the Covid pandemic.
Online grocery sales grew by 12% in the four weeks to 5 October compared with the same period last year, according to Worldpanel, with online now making up 12.7% of the market – the highest share since March 2022.
Part of the rise is due to Ocado’s continued success, with the online specialist growing sales 13.6% in the 12 weeks to 5 October, keeping it as Britain’s fastest-growing grocer.
It comes as food inflation nudged up to 5.2% in the period, Worldpanel said, with prices rising fastest in categories such as chocolate, fresh meat, and coffee.
Take-home sales across the grocers rose by 4.1%, suggesting growth is driven by inflation while volumes fall.
“Households are juggling a lot of different things when choosing what and where to buy their groceries,” said Fraser McKevitt, head of retail and consumer insight at Worldpanel.
“Inevitably, cost will be up towards the top of the list as price rises accelerate.”
However, it is not only price at the top of the priorities list with new Worldpanel data showing how both shoppers and retailers are also balancing concerns around health and sustainability.
Among shoppers, concerns about microplastics are on the rise with over 40% of British households saying they are increasingly worried about the impact on their health.
Meanwhile for supermarkets, one of the key health concerns of late has been the new regulations that came into force in England this month restricting multibuy deals on products high in fat, salt or sugar.
The new rules are largely being followed, according to Worldpanel. For example, three years ago, 28% of promotional spending on crisps was through multibuy offers but this is down to 8% in the month to 5 October. Similarly in the cereal aisle, promotional spending on multibuy deals is down from 18% to 5% during the same period.
For shoppers, sustainability remains a top concern, according to Worldpanel’s research, which found 50% of British shoppers believe that environmental issues are a critical threat to humanity.
However, it also found a growing sense of pessimism among consumers about their ability to really make a difference.
“There’s an opportunity for brands and retailers who can make it easier to make sustainable choices and people seem to be willing to adapt,” McKevitt said.
For example, half of shoppers said they would accept plainer packaging for a product that they trusted was better for the environment, the same proportion who would be willing to bring their own packaging.
However, only 9% of people are happy to pay more for items that are better for the planet and only 3% would compromise on quality.
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