As e-commerce flourished across sectors, shopping for fresh food and groceries remained obstinately brick-and-mortar over the years. Due to factors like food perishability and risk of damage or spoilage, the
remained below one percent in the United States pre-pandemic. However, the onset of the coronavirus pandemic and the lockdown restrictions that ensued have galvanized and propelled fresh food e-commerce to significance. A quick glance at the evolution of
in China is testimony to the segment’s impressive growth.
Challenges and setbacks
In a survey conducted in 2023, consumers in Italy voiced
concerns over food quality or the fear of receiving products damaged or perished when shopping for groceries online. More than half of sampled participants said they preferred to see food products before buying them, while another 37 percent are simply used to buying food products in the supermarket rather than online. Similar concerns were echoed in
Australia, where a 2022 survey revealed that only ten percent of respondents found the quality of food to be better when shopping online. Online channels also scored lower on consumers’ perception of food selection, food availability, and value for money.
Despite this, fresh food online thrives…
While consumers are still reluctant to fully embrace online shopping for fresh food and groceries, the industry has made great strides in addressing these challenges and barriers. In fact, a recent survey revealed that
fresh food e-commerce penetration is in the double-digit territory in various European countries, with around 35 percent of online buyers in Portugal and Romania purchasing fresh food and beverages online. In the UK and the Netherlands, this figure stood at 52 percent and 45 percent, respectively. Prominent players in the fresh food e-commerce market include UK-based online supermarket
Ocado, and its Dutch-based counterpart
Picnic.
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