Spryker research finds that nearly two-thirds of Australian consumers order groceries online, with 10% shopping most or all of their food online.

Spryker Systems GmbH

Spryker Systems GmbH

Nearly one in five Australians is set to do most or all of their online grocery shopping within two years

Spryker Online Grocery Report in Australia 2022

Spryker research finds that nearly two-thirds of Australian consumers order groceries online, with 10% shopping most or all of their food online.

Spryker research finds that nearly two-thirds of Australian consumers order groceries online, with 10% shopping most or all of their food online.

MELBOURNE, Australia, October 11, 2022 (GLOBE NEWSWIRE) – Spryker, the leading platform for enterprise markets, commerce of things, and standardized commerce, today released the 2022 Australian Online Grocery Report. Research of 2,500 Australian consumers found nearly half – 48% – of Australians buy at least some groceries online, 10% now order most or all of their groceries online. In total, 23% of Australian household dining budgets are now spent on ordering online. The research, conducted by Spryker in partnership with market research firm Appinio, surveyed consumers from across Australia about their experiences and opinions about grocery shopping.

With the Australian grocery market It is currently valued at $125 billionAnd the There is a great opportunity for retailers who provide services in online grocery shopping. In fact, one in five respondents (18%) said they see themselves buying most or all of their groceries online within two years. Currently, shoppers in the 25-44 age group are more likely to order online and spend the highest percentage of their online grocery budget than other age groups. However, the older age groups (45-65) match the younger ones in terms of the total amount spent online – even though this overall percentage is lower than their grocery budgets. Participants in the 55-65 age group were more likely to cite a desire to avoid crowded supermarkets and thus reduce risk of contracting coronavirus as a motivation for online shopping.

A “fun” experience in the store
Despite the expanding market, online retailers face one major hurdle – 75% of respondents’ grocery budgets are spent offline, and 88% of shoppers find shopping in supermarkets enjoyable. This is much more positive than US morale. Equivalent Spryker’s survey of US groceries online as of December 2021 Only 55% of American shoppers found in-store shopping to be an enjoyable experience. Even in Germany’s mature online grocery market, 73% of shoppers said they found in-store shopping enjoyable according to The German Survey of Spyker From July 2022.

“Our recent research has shown that Australian shoppers are placing more emphasis on lower costs and better product selection when it comes to buying online. With the in-store shopping experience being a positive one for the majority of shoppers, tempting them to buy more groceries online will be a challenge for many retailers. Spryker co-founder and CEO Boris Lokshin commented, “But it’s also a huge opportunity. Retailers working with compostable commerce solutions will be better prepared to capture market share in this evolving and dynamic grocery market. Their focus should be on delivering a seamless online shopping experience.” Exceeding consumer expectations, and using the best approach, retailers can have the flexibility to adapt to changing customer needs.Whether offering broader product choices, flexible delivery and collection options, or combining with on-demand delivery partners, the Australian online grocery market has significant growth potential For organizations wanting to offer the best digital commerce experience.”

Online winners and online losers
Looking at who to miss when shoppers made more purchases online, 22% of respondents reported significant reductions in their spending at health food stores, while another 15% cut back on spending at local farm stores and open-air markets. Surprisingly, only 4% reported spending less in supermarkets. To dig deeper, the duopoly between Coles and Woolworths, both of whom have invested heavily in their standardized trading experiences – enabling them to offer flexible online store delivery and home delivery with ease – represents a minimal reduction in spending in supermarkets across any channel.

Meanwhile, 10% of shoppers also said they buy significantly less at discount retailers. So there is an opportunity for retailers to offer huge discounts, with 87% of respondents saying they would do more online shopping if the prices were lower. Given that only 4.4% of the Australian population lives more than 20 minutes from a supermarket, lower prices could help increase online buying for discount retailers and lure people away from supermarkets within a 20-minute radius. Beyond price, consumers can be lured away from major supermarkets by a wide range of service factors including easier user interfaces (75% likely or very likely), wider product ranges (77%), better availability nearby (78%) , and the fastest delivery (76%).

Another category that can benefit from enhanced digital commerce experiences is local retailers. Many consumers want to see their local suppliers offer online options: 40% want full order from local markets and online farmers. Additionally, 25% of respondents believe organic stores should be online. When asked which specific provider they would like to see online, 12% of respondents stated that Farmer Jack’s is based in Perth, making this Western Australian-based provider of regional, local and organic foods the fifth most frequent answer – a solid proposition, especially considering the Only 11% of Australians live in the state.

Amazon is unable to distinguish
Despite Amazon’s significant investment in the online grocery market – globally and in Australia, only 42% of Australian consumers referred to Amazon when given a list of online food delivery operators and asked which companies they identify with. Meanwhile, 84% of survey respondents admitted to Uber Eats, and 77% admitted to Minologue. It is followed by Doordash in third place with 75% of brand recognition, while Deliveroo is in fifth place with 66%. Looking beyond mere recognition, 62% of respondents said they use Uber Eats (24% regularly) and 31% of Deliveroo customers (8% regularly) highlighting how well-established these two brands are in Australia.

The full 2022 online Australian grocery report is available https://www.efoodinsights.com/australia-online-grocery-report/

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methodology
The Australian Online Grocery Report 2022 is based on a study conducted by Appinio and digital commerce platform provider Spryker in mid-2022. Appinio asked 2,500 respondents a range of detailed questions about their experiences and opinions of online grocery shopping to date. The result is the largest and most detailed set of data currently available on online food shopping habits in Australia. Survey participants were between 16 and 65 years old (mean age: 39.5) and lived in Australia at the time they participated; 21.6% live in towns or regions with a population of less than 50,000, while 25.7% live in towns with a population of less than 250,000. 13.5% of respondents resided in smaller cities (250,000 to 750,000), with 39.2% in the country’s five largest cities such as Sydney, Melbourne, Perth, Brisbane and Adelaide.

About Appinio
Hamburg-based Appinio is a global market research platform that enables companies to get thousands of opinions from specific target audiences around the world – in just a few minutes. For the first time, everyone can validate decisions and ideas in real time with representative results from consumers. As the fastest market research solution, Appinio provides feedback from over 90 markets. More than 1,000 companies from all industries are using the end-to-end Appinio platform to become more flexible and customer focused. Clients include VW, Unilever, Netflix, Gorillas, Bertelsmann, Warner Brothers, Samsung, Jägermeister, Red Bull and About You as well as all major agencies and management consultancies. Appinio has received several awards, including the European Top Business Startup Award at the Pioneers Festival, the Best of Mobile Award and the Best of Hamburg Award. Jonathan Korves, Founder and CEO of Appinio, belongs to the Forbes 30 Under 30 in Europe 2020.

About Spryker
Spryker is the leading buildable commerce platform for organizations with evolving business models to enable growth, innovation, and differentiation. Designed for complex businesses, Spryker’s easy-to-use, headless, first API model provides the best approach that provides companies with the flexibility to adapt, scale, and quickly go to market while facilitating faster time-to-value during their digital transformation journey. As a world leader in B2B and B2C enterprise markets, Thing Commerce, and consolidated commerce, Spryker has empowered more than 150 global enterprise customers worldwide and is trusted by brands such as ALDI, Siemens, Hilti and Ricoh. Spryker has been recognized by Gartner® as a dreamer in 2022 Magic Quadrant™ for digital commerce and is also rated as a powerful performing tool in Forrester Wave ™: B2B Commerce Solutions, Q2 2022. Spryker is a private technology company headquartered in Berlin and New York. Find out more on https://spryker.com

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