Online grocery retailers are seeing a flood of orders from customers confined to their homes during the fight against COVID-19, and this could create new opportunities for potato suppliers.
GlobalData, a leading data and analytics company, reveals in its recent report, COVID-19 Impact on Ecommerce, that COVID-19 will have a long-term positive effect on the e-commerce sector, with even the most sceptical consumers forced to abandon physical stores in response to restrictions on movement.
Thematic Analyst at GlobalData, Luke Gowland, said: “COVID-19 has given the ecommerce sector a boost, with online grocery retailers the biggest beneficiaries. Supermarkets are experiencing unprecedented demand for home grocery delivery. GlobalData expects the UK online food and grocery market to grow nearly 20% in 2020 to £13.2bn.”
Potato and other suppliers are therefore in a good position to negotiate, said Luke.
“Companies will be focusing on their supply chains and how technologies such as the cloud, 5G, IoT, and blockchain can help to improve their efficiency and robustness. Ultimately, ecommerce will benefit from COVID-19 with even the worst effected companies will begin to build momentum once more once lockdown restrictions have been lifted.”
The latest research from Mintel reveals the online grocery market is forecast to grow by 33% in 2020 to reach an estimated value of £16.8 billion, up from £12.7 billion in 2019, according to forecasts by Mintel. This follows four consecutive years of slowing growth. The market is set to be worth £17.9 billion by 2024, growing by 41% over the five-year period.
Nick Carroll, Associate Director of Retail Research at Mintel, said: “COVID-19 has had a seismic impact on Britain’s grocery sector. The pandemic is giving a significant short-term boost to online grocery services, as shoppers look to avoid stores and limit their contact with the outside world. However, the impact will last beyond the crisis.”