UK grocery sales to reach �11.2 billion by 2016

A report from retail industry analysts at IGD predicted online grocery sales will account for 3.8 percent of overall grocery sales at the end of this year, and will reach 6 percent by 2016. The report also anticipated the value of the U.K. online grocery market to double over the next five years, with sales hitting £11.2 billion by 2016.

The report estimated that the current value of the online grocery market in the U.K. is £5.9 billion, but the increased popularity of smartphone applications will drive the growth of online sales in the future. The analysts surveyed U.K. consumers and found 44 percent of adults said they intend to shop for groceries online in the next five to 10 years, with 64 percent using at least two online supermarkets for their purchases.

Joanne Denney-Finch, CEO of IGD, said the online grocery industry is the fastest growing grocery channel, and increasing use of technology and online innovations will lead to more multichannel shoppers and will drive sales.

In addition, data from IMRG found online retail sales in September were up 15 percent compared to the same month last year, and 6 percent higher than sales in August. Online U.K. shoppers have spent £47 billion in 2011 to date, and the index predicted the industry will report 16 percent growth in sales compared to 2010.