The digitization of grocery shopping: zoom on the European opportunity

We’ve been talking about buying groceries online for a while now with first attempts occurring in the early 2000’s. However, the overall online food shopping experience remains under customers expectations. The 2020 pandemic highlighted the crucial role food retailers can play in our societies and put the spotlight again on the existing and yet-to-be-captured online grocery market, as online channels are still estimated to account for only c. 2%-8% of total grocery sales, depending on the European country (Nielsen).

The industry is traditionally characterized by low margins and low levels of customer loyalty, which makes it even more challenging for tech players willing to seize a share of the market opportunity.

Tech players that manage to combine operational excellence with a seamless online experience are expected to be well equipped to challenge the incumbent competitive landscape.

As a consequence, investors and corporates are scouting more than ever for these performing and best positioned players in this promising segment.

Is European digital grocery having its momentum? Will online grocers find their way into most people consumption habits? Will they manage to build scalable and profitable business models? What are the key drivers to succeed in the online grocery shopping?

Here are the main questions addressed in this piece of research