UK Online Grocery Market to Reach £24 Billion by 2029: Morgan Stanley by Investing.com

Morgan Stanley (NYSE: ) has released a report showing the resurgence of the online grocery market Government (Dawl:) Following the post-Covid normalization period, the market has entered growth mode, outpacing the entire grocery sector for the first time in three years. In the year By 2024, online grocery delivery will increase by approximately 20 basis points to 11.7%, indicating that the post-pandemic demand stabilization is over.

Morgan Stanley projects that online penetration will grow by 30 basis points per year until 2029, achieving a compound annual growth rate (CAGR) of approximately 6% and a total addressable market (TAM) of approximately £24 billion. 13.2% penetration.

Tesco (OTC: ), with a 29 percent share of the UK online market, is Morgan Stanley’s preferred stock in this expanding sector. The report draws attention to the on-demand grocery segment, which is currently worth £2 billion and growing at an estimated 15% CAGR, or 2.5 times the pace of the wider online grocery market. In the year By 2030, the on-demand grocery market could reach £5 billion, but still only represent 2% of the total grocery market.

Deliveroo (OTC: ) has been identified as the most vulnerable to the on-demand grocery trend, with the company and Uber (NYSE: ) handling about 2/3 of all on-demand orders from the UK together. Deliveroo Group Total Marketing (JO:) Value (GTV) from the UK demand market alone is approximately 9%, and when international demand increases, it increases to approximately 15%. The report suggests that Deliveroo is handling more orders in the UK than Ocado (LON: ), despite Ocado’s average order value.

Meanwhile, Just Eat, which holds the largest share of the UK food delivery market, is said to be playing in the on-demand grocery space. Although Just Eat currently owns half of Deliveroo’s GTV in the segment, Morgan Stanley estimates that by 2030, Just Eat’s dominant position in food delivery could outpace Deliveroo and Uber in terms of grocery revenues.

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