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United Kingdom (UK) Online Retailing Market Size, Segment Analysis, Drivers and Constraints, Trends and Forecast, 2021-2025

The online retailing market in the UK was valued at GBP87,570 million in 2020. The market is projected to grow at a CAGR of more than 3% during the forecast period. The COVID-19 pandemic hastened the shift to online retail market, with the UK market growing by about 40% in 2020. It is of note that while most retail sectors saw online penetration fall back towards pre-COVID-19 levels in 2021 as physical locations remained opened for a longer period, online penetration in the food grocery sector has continued to climb, as consumers became more confident shopping this sector online, particularly older age groups.

Overview of the online retailing market in the UK

Overview of the online retailing market in the UK

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What are the online retailing market dynamics in the UK?

The online market is forecast to see a decline in sales in 2022 as consumers use physical locations more frequently. But the online market will retain its appeal as those previously reluctant to shop online overcame barriers such as creating accounts. The ease of browsing via apps appeals to shoppers boosting growth in online retailing. The prevalence of social media will also drive online sales, with Instagram and Facebook making purchasing more accessible to users. As grocers expanded their capacity to meet the huge demand for online deliveries during 2020, the appeal to place regular food & grocery orders online will continue to grow post pandemic. It is important for retailers to make their online propositions accessible and appealing to older shoppers, including highlighting unique products. This is because more than 70% of older online shoppers stated that they purchase via this channel as they can get hold of unusual items.

What are the key sectors in the online retailing market in the UK?

The key sectors in online retailing market in the UK are clothing and footwear, food and grocery, electricals, health and beauty, homewares, furniture and floor coverings, DIY and gardening, books, entertainment, and others. Among these, the highest proportion of shoppers purchasing online for the first time in 2021 was in the food and grocery sector. The sector is also forecast to have the highest growth rate in online retailing during the review period. In 2020, the clothing & footwear sector had the highest value in the online retail market but that place will be taken by the food & grocery sector by 2025. The clothing and footwear sector and the food and grocery is followed by the electricals sector. That market is significantly more mature than other core sectors in the market as online retailing accounted for over half of the sector’s sales since 2017.

Online retailing market in the UK, by sector

Online retailing market in the UK, by sector

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Which are the major players in the online retailing market in the UK?

The key players in the online retailing market in the UK are Aldi, Amazon, Amazon Fresh, AO, Apple, Argos, ASDA, ASOS, Audible, B&Q, Book Depository, Boots, Currys, Debenhams, DFS, Dunelm, Facebook, Farmdrop, Feelunique, GAME, Getir, Google, Gorillas, H&M, HMV, Holland & Barrett, Home Bargains, Homebase, Hotel Chocolat, Iceland, IKEA, Instagram, iTunes, John Lewis & Partners, Laithwaites, Lidl, Lookfantastic, Marks & Spencer, and Matalan.

Online retailing market in the UK, by key players

Online retailing market in the UK, by key players

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Market report scope

Market size (2020) GBP87,570 million
Growth rate (CAGR)  >3%
Base year for estimation 2020
Forecast period 2021-2025
Segmentation by type Clothing and Footwear, Food and Grocery, Electricals, Health and Beauty, Homewares, Furniture and Floor Coverings, DIY and Gardening, Books, Entertainment, and Others
Key players Aldi, Amazon, Amazon Fresh, AO, Apple, Argos, ASDA, ASOS, Audible, B&Q, Book Depository, Boots, Currys, Debenhams, DFS, Dunelm, Facebook, Farmdrop, Feelunique, GAME, Getir, Google, Gorillas, H&M, HMV, Holland & Barrett, Home Bargains, Homebase, Hotel Chocolat, Iceland, IKEA, John Lewis & Partners, Laithwaites, Lidl, Lookfantastic, Marks & Spencer, and Matalan

The UK online retailing market size, segment analysis, drivers and constraints, trends and forecast, 2021-2025 report offers comprehensive insight and analysis of the online channel in the UK, the main trends and hot issues, major players and consumer shopping behavior. It also provides forecasts to 2025 across key retail sectors.

Reasons to Buy

  • Use our in-depth consumer and market insight to learn about the growth of different sectors online and the issues affecting the online market to ensure you capitalize on high growth areas such as click & collect and third-party pickup in a given sector.
  • Understand why and how consumers shop online for different products to capitalize on the growth in the online market.
  • Understand which retailers have the most popular online propositions in each sector, enabling you to better compete with market leading players and enhance your own online propositions.

Key Players

Aldi

Amazon

Amazon Fresh

AO

Apple

Argos

ASDA

ASOS

Audible

B&Q

Book Depository

Boots

Currys

Debenhams

DFS

Dunelm

Facebook

Farmdrop

Feelunique

GAME

Getir

Google

Gorillas

H&M

HMV

Holland & Barrett

Home Bargains

Homebase

Hotel Chocolat

Iceland

IKEA

Instagram

iTunes

John Lewis & Partners

Laithwaites

Lidl

Lookfantastic

Marks & Spencer

Matalan

Milk & More

Moonpig

Morrisons

New Look

Next

Nike

Nintendo

Oak Furniture Land

Ocado

Playstation

Sainsbury’s

Screwfix

Sky

Sports Direct

Steam

Superdrug

Tesco

The Body Shop

The Book People

The Range

The Works

TikTok

Toolstation

Twitter

Very

Waitrose & Partners

Waterstones

Wayfair

WH Smith

Wickes

Wilko

World of Books

YouTube

Zara

Table of Contents

Table of Contents

Executive summary

£25.1bn added to the online market in 2020, driven by the food & grocery sector

The online channel will overtake the town centres market by 2025

Click & collect will outperform the UK online retail market between 2020 and 2025

KEY TRENDS

Market drivers

Market inhibitors

Key Trends: Rise in Q-commerce in food & grocery sector

Key Trends: New online shoppers

Key Trends: Physical locations supporting the online channel

MARKET SIZE AND FORECASTS 2020-2025

UK Online Market, five year growth 2015, 2020 & 2025

UK Online Market Size, 2015-2025

UK Online Growth vs Total Retail Growth, 2015-2025

UK Online Share of Total Retail, 2015-2025

UK Online Non-Food Share of Non-Food Retail, 2015-2025

UK Fulfilment Method Share of Online Retail, 2015, 2020, & 2025

SECTOR PERFORMANCE AND FORECASTS 2020-2025

Key sector trends

UK Online Sector Growth %, 2020-2025

UK Online Market by Sector %, 2015-2025

UK Online Market Sector Value and Forecast, 2015, 2020 & 2025

UK Online Sector Penetration %, 2020

UK Click & Collect Sector Sales, 2015, 2020 & 2025

UK Third-Party Pickup Sector Sales, 2015, 2020 & 2025

UK Online Returns Market by Sector, 2015, 2020 & 2025

UK Online Books Market, 2015-2025

UK Books Market Growth by Channel, 2020-2025

UK Online Clothing & Footwear Market, 2015-2025

UK Clothing & Footwear Market Growth by Channel, 2020-2025

UK Online DIY & Gardening Market, 2015-2025

UK DIY & Gardening Market Growth by Channel, 2020-2025

UK Online Electricals Market, 2015-2025

UK Electricals Market Growth by Channel, 2020-2025

UK Online Entertainment Market, 2015-2025

UK Entertainment Market Growth by Channel, 2020-2025

UK Online Food & Grocery Market, 2015-2025

UK Food & Grocery Market Growth by Channel, 2020-2025

UK Online Furniture & Floorcoverings Market, 2015-2025

UK Furniture & Floorcoverings Market Growth by Channel, 2020-2025

UK Online Health & Beauty Market, 2015-2025

UK Health & Beauty Market Growth by Channel, 2020-2025

UK Online Homewares Market, 2015-2025

UK Homewares Market Growth by Channel, 2020-2025

COMPETITIVE LANDSCAPE: RETAILER USAGE

Top 10 retailers purchased from by sector, 2021

CONSUMERS

Key consumer trends

UK Online Shopper Penetration & Profile, 2020

UK Online Books Shopper Penetration, 2020 & 2021

UK Online Clothing & Footwear Shopper Penetration, 2020 & 2021

UK Online DIY & Gardening Shopper Penetration, 2020 & 2021

UK Online Electricals Shopper Penetration, 2020 & 2021

UK Online Entertainment Shopper Penetration, 2020 & 2021

UK Online Food & Grocery: Weekly or Regular Shop Shopper Penetration, 2020 & 2021

UK Online Furniture & Floorcoverings Shopper Penetration, 2020 & 2021

UK Online Health & Beauty Shopper Penetration, 2020 & 2021

UK Online Homewares Shopper Penetration, 2020 & 2021

Online Shopping Drivers, 2020 & 2021

Online Shopping Drivers, 2021

Device Penetration, 20217-2021

Device Penetration, 2021

Online Returns Method Usage, 2018-2021

Drivers of Online Clothing & Footwear Returns, 2018-2021

Social Media Penetration, 2021

Location of Online Purchases, 2019, 2020 and 2021

METHODOLOGY, DEFINITIONS AND CONTACTS

Methodology

Definitions

Contact Us

List of Tables

List of Tables

UK Online Market Sector Value and Forecast, 2015, 2020 & 2025

UK Click & Collect Sector Sales, 2015, 2020 & 2025

UK Third-Party Pickup Sector Sales, 2015, 2020 & 2025

UK Online Returns Market by Sector, 2015, 2020 & 2025

List of Figures

List of Figures

Preference for Faster Delivery Versus Free Delivery When Shopping Online for Food & Grocery %, 2021

% of Sector Online Shoppers Who Shopped the Sector Online for the First Time, 2021

True Value of Stores, excluding Food & Grocery 2019, 2020, 2021 & 2025

UK Online Market GBPm, 2015, 2020, 2025

UK Online Market Value GBPm, 2015-2025

UK Online Market Annual Growth %, 2015-2025

UK Online Growth vs Total Retail Growth, 2015-2025

UK Online Share of Total Retail %, 2015-2025

UK Online Non-Food Share of Non-Food Retail %, 2015-2025

UK Fulfilment Method Share of Online Retail %, 2015, 2020 & 2025

UK Online Sector Growth %, 2020-2025

UK Online Market by Sector %, 2015-2025

UK Online Sector Penetration %, 2020

UK Online Books Market Value GBPm, 2015-2025

UK Online Books Market Annual Growth vs Total Online Growth %, 2015-2025

UK Books Share of Total Online Market %, 2015-2025

UK Books Online Share of Sector %, 2015-2025

UK Books Market Growth by Channel, 2020-2025

UK Online Clothing & Footwear Market Value GBPm, 2015-2025

UK Online Clothing & Footwear Market Annual Growth vs Total Online Growth %, 2015-2025

UK Clothing & Footwear Share of Total Online Market %, 2015-2025

UK Clothing & Footwear Online Share of Sector %, 2015-2025

UK Clothing & Footwear Market Growth by Channel, 2020-2025

UK Online DIY& Gardening Market Value GBPm, 2015-2025

UK Online DIY& Gardening Market Annual Growth vs Total Online Growth %, 2015-2025

UK DIY& Gardening Share of Total Online Market %, 2015-2025

UK DIY& Gardening Online Share of Sector %, 2015-2025

UK DIY& Gardening Market Growth by Channel, 2020-2025

UK Online Electricals Market Value GBPm, 2015-2025

UK Online Electricals Market Annual Growth vs Total Online Growth %, 2015-2025

UK Electricals Share of Total Online Market %, 2015-2025

UK Electricals Online Share of Sector %, 2015-2025

UK Electricals Market Growth by Channel, 2020-2025

UK Online Entertainment Market Value GBPm, 2015-2025

UK Online Entertainment Market Annual Growth vs Total Online Growth %, 2015-2025

UK Entertainment Share of Total Online Market %, 2015-2025

UK Entertainment Online Share of Sector %, 2015-2025

UK Entertainment Market Growth by Channel, 2020-2025

UK Online Food & Grocery Market Value GBPm, 2015-2025

UK Online Food & Grocery Market Annual Growth vs Total Online Growth %, 2015-2025

UK Food & Grocery Share of Total Online Market %, 2015-2025

UK Food & Grocery Online Share of Sector %, 2015-2025

UK Food & Grocery Market Growth by Channel, 2020-2025

UK Online Furniture & Floorcoverings Market Value GBPm, 2015-2025

UK Online Furniture & Floorcoverings Market Annual Growth vs Total Online Growth %, 2015-2025

UK Furniture & Floorcoverings Share of Total Online Market %, 2015-2025

UK Furniture & Floorcoverings Online Share of Sector %, 2015-2025

UK Furniture & Floorcoverings Market Growth by Channel, 2020-2025

UK Online Health & Beauty Market Value GBPm, 2015-2025

UK Online Health & Beauty Market Annual Growth vs Total Online Growth %, 2015-2025

UK Health & Beauty Share of Total Online Market %, 2015-2025

UK Health & Beauty Online Share of Sector %, 2015-2025

UK Health & Beauty Market Growth by Channel, 2020-2025

UK Online Homewares Market Value GBPm, 2015-2025

UK Online Homewares Market Annual Growth vs Total Online Growth %, 2015-2025

UK Homewares Share of Total Online Market %, 2015-2025

UK Homewares Online Share of Sector %, 2015-2025

UK Homewares Market Growth by Channel, 2020-2025

Top 10 Books Retailers %, 2021

Top 10 Clothing & Footwear Retailers %, 2021

Top 10 DIY & Gardening Retailers %, 2021

Top 10 Electricals Retailers %, 2021

Top 10 Food & Grocery (weekly or regular shop) Retailers %, 2021

Top 10 Food & Grocery (gift food) Retailers %, 2021

Top 10 Furniture & Floorcoverings Retailers %, 2021

Top 10 Health & Beauty Retailers %, 2021

Top 10 Homewares Retailers %, 2021

Top 10 Music & Video Retailers %, 2021

Top 10 Video & Computer Games Retailers %, 2021

UK Online Shopper Penetration %, 2020

UK Online Shopper Profile %, 2020

UK Online Books Shopper Penetration %, 2021

UK Online Books Shopper Penetration %, 2020

UK Online Clothing & Footwear Shopper Penetration %, 2021

UK Online Clothing & Footwear Shopper Penetration %, 2020

UK Online DIY & Gardening Shopper Penetration %, 2021

UK Online DIY & Gardening Shopper Penetration %, 2020

UK Online Electricals Shopper Penetration %, 2021

UK Online Electricals Shopper Penetration %, 2020

UK Online Entertainment Shopper Penetration %, 2021

UK Online Entertainment Shopper Penetration %, 2020

UK Online Food & Grocery: Weekly or Regular Shop Shopper Penetration %, 2021

UK Online Food & Grocery: Weekly or Regular Shop Shopper Penetration %, 2020

UK Online Furniture & Floorcoverings Shopper Penetration %, 2021

UK Online Furniture & Floorcoverings Shopper Penetration %, 2020

UK Online Health & Beauty Shopper Penetration %, 2021

UK Online Health & Beauty Shopper Penetration %, 2020

UK Online Homewares Shopper Penetration %, 2021

UK Online Homewares Shopper Penetration %, 2020

Online Shopping Drivers %, 2020 & 2021

Online Shopping Drivers %, 2021

Device Penetration %, 2017-2021

Device Penetration by Demographics %, 2021

Online Returns Method Usage %, 2018-2021

Drivers of Online Clothing & Footwear Returns %, 2018-2021

Social Media Penetration %, 2021

Location of Online Purchases, 2019, 2020 and 2021

Frequently Asked Questions

The online retailing market in the UK was valued at GBP87,570 million in 2020.

The UK online retailing market is projected to register a growth of more than 3% during the period of 2021-2025.

The key categories in online retailing market in the UK include clothing and footwear, food and grocery, electricals, health and beauty, homewares, furniture and floor coverings, DIY and gardening, books, entertainment, and others.

The key players in online retailing market in the UK are Aldi, Amazon, Amazon Fresh, AO, Apple, Argos, ASDA, ASOS, Audible, B&Q, Book Depository, Boots, Currys, Debenhams, DFS, Dunelm, Facebook, Farmdrop, Feelunique, GAME, Getir, Google, Gorillas, H&M, HMV, Holland & Barrett, Home Bargains, Homebase, Hotel Chocolat, Iceland, IKEA, John Lewis & Partners, Laithwaites, Lidl, Lookfantastic, Marks & Spencer, and Matalan.

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