Spryker Research Finds 10% of Consumers Order Most or All of Their Groceries Over the Internet

Nearly two-thirds of Australian consumers shop for groceries online, while 10% order most or all of their groceries online, Spryker research found

Nearly one in five Australians will buy most or all of their groceries online within two years

Spryker, the leading platform for enterprise marketplaces, IoT e-commerce and unified commerce, today released the 2022 Australians Online Grocery Shopping Report. The study of 2500 Australian consumers found that nearly half (48%) of Australians buy at least some of their groceries online, with 10% now ordering most or all of their groceries online. Overall, 23 per cent of Australian households' food budget is spent online. The study, carried out by Spryker in partnership with market research firm Appinio, examined the experiences and perceptions of consumers across Australia when it comes to grocery shopping.

With the Australian grocery market currently valued at $125 billion, there is a huge opportunity for retailers to offer online grocery shopping. In fact, nearly one in five (18%) respondents said they expect to buy most or all of their groceries online within two years. Currently, shoppers in the 25-44 age group are the most likely to shop online compared to other age groups, with the highest percentage of their grocery budgets shopping online. However, older age groups (ages 45 to 65) are on par with younger adults in terms of total online spending – although online shopping is a lower overall share of their grocery budget. The willingness to avoid crowded supermarkets to minimise the risk of contracting the coronavirus was one reason why most respondents aged 55 to 65 said they chose to shop online.

"Pleasant" in-store experience

Despite the expanding market, online retailers face a key hurdle – 75% of respondents’ grocery budgets are spent offline, and 88% of shoppers find in-store supermarket shopping an enjoyable experience . This figure is more optimistic than that of the United States. An equivalent Spryker survey of Americans shopping for groceries online from December 2021 found that only 55% of U.S. shoppers found shopping in a brick-and-mortar store a pleasant experience. According to Spryker's survey of Germany since July 2022, even in Germany's mature online grocery market, 73% of shoppers say their in-store shopping experience is pleasant.

Spryker co-founder and CEO Boris Lokschin said: “Our recent research shows that Australian shoppers are most concerned about lower costs and better product selection when shopping online. Given that in-store shopping is a This positive experience, attracting them to shop more online for groceries will be a challenge for many retailers. But it's also a huge opportunity. Retailers with a combined commerce solution will be best prepared, in this The complex and dynamic grocery market dominates the market. Their business focus must be on delivering a seamless online shopping experience that exceeds consumer expectations; using the best approach, retailers can flexibly adapt to changing customer needs. Whether Whether offering a wider selection of products, flexible delivery and pickup options, or working with on-demand delivery partners, the Australian online grocery market has enormous growth potential for organisations interested in delivering a top-notch digital commerce experience.”

Online winners and offline losers

When it comes to businesses that are losing money as consumers shop more online, 22% of respondents said they've significantly reduced spending at health food stores, while another 15% have reduced spending at local farmers' stores and open-air markets. Surprisingly, only 4% of respondents said they were spending less at supermarkets. Looking deeper, the duopoly of Coles and Woolworths has resulted in only a small drop in supermarket spending in any channel. Both companies have invested heavily in unifying the e-commerce experience, making it easy to offer flexible in-store, online, curbside pickup and home delivery.

At the same time, 10% of shoppers also said they were buying significantly less at discount retailers. Therefore, there is still an opportunity for these discount retailers, as 87% of respondents said they would buy food online more if prices were lower. Given that only 4.4 per cent of Australians live more than a 20-minute drive from a supermarket, lower prices could help boost online sales for discount retailers and lure people away from supermarkets within a 20-minute drive. In addition to price, consumers are also likely to stay away from mainstream supermarkets due to a number of service factors, including simpler user interface (75% say likely or likely), wider product range (77%), better peripheral availability (78%) and faster delivery (76%).

Another group that could benefit from an improved digital commerce experience are local retailers. Many consumers want to see online options from local suppliers: a full 40% want to buy products or services online from local markets and farmers. In addition, 25% of respondents believe that organic stores should set up online shopping channels. When asked about specific suppliers they would like to see online, 12 per cent of respondents mentioned Farmer Jack's in Perth, making the Western Australia-based regional, local and organic food supplier fifth Big common option - this is a remarkable performance, especially considering that only 11 per cent of Australians live in the state.

Amazon may struggle to stand out

Despite Amazon's significant investments in the online grocery marketplace globally and in Australia, only 42 per cent of Australian consumers chose Amazon on the list when people were asked which online food delivery operators they knew. Meanwhile, 84% of respondents knew about Uber Eats and 77% knew about Menulog; Doordash came in third with 75% of brand awareness, and Deliveroo came in fifth with 66%. Aside from a brief understanding, 62% of respondents said they use Uber Eats (24% regularly) and 31% are Deliveroo customers (8% frequently), underscoring the high profile of both brands in Australia.

investigation method

The 2022 Australian Online Grocery Shopping Report is based on a study by Appinio and digital commerce platform provider Spryker in mid-2022. Appinio asked 2,500 respondents a detailed series of questions about their online shopping experience to date and their perceptions of online shopping. The survey has produced the most comprehensive and detailed data available on Australia's online food shopping habits. Survey respondents were aged between 16 and 65 (average age: 39.5), and they all lived in Australia when they participated in the survey; 21.6% of respondents lived in towns or regions with a population of less than 50,000, 25.7% Live in towns with a population of over 250,000. 13.5% of respondents live in small cities (population between 250,000 and 750,000) and 39.2% live in Australia's five largest cities: Sydney, Melbourne, Perth, Brisbane and Adelaide.

About Appinio

Hamburg-based Appinio is a global market research platform that enables client companies to gain access to thousands of opinions and perceptions from specific target audiences around the world in just a few minutes. For the first time, the platform enables everyone to validate decisions and ideas in real-time with representative consumer results. As the fastest solution for market research, Appinio provides feedback on more than 90 markets. More than 1,000 companies from all industries have become more agile and customer-driven with Appinio's comprehensive platform. Corporate clients include VW, Unilever, Netflix, Gorillas, Bertelsmann, Warner Brothers, Samsung, Jägermeister, Red Bull and About You, as well as all major agency and management consultancies. Appinio has won numerous awards, including being named Europe's Best Startup at the Pioneers Festival, as well as Best of Mobile and Best of Hamburg Award. Appinio founder and CEO Jonathan Kurfess has been named to Forbes Europe's 30 Under 30 list for 2020.

About Spryker

Spryker is the leading composable commerce platform that empowers businesses with proven business models to grow, innovate and differentiate. Designed for complex transactional businesses, Spryker's easy-to-use, headless, API-first model provides an optimal approach, giving businesses the flexibility to adapt, scale, and go to market quickly, while facilitating their digital transformation Time-to-value faster in the process. As the global platform leader in B2B and B2C enterprise marketplaces, IoT e-commerce and unified commerce, Spryker has supported more than 150 global enterprise clients around the world and is trusted by brands such as ALDI, Siemens, Hilti and Ricoh . Spryker was named a "Visionary" in the 2022 Magic Quadrant for Digital Commerce by Gartner® and a "Outstanding Performer" in the Q2 2022 Forrester Wave™: B2B Commerce Solutions. Spryker is a privately held technology company headquartered in Berlin and New York.