Ten global online grocery markets including the UK are predicted to experience combined growth of $227bn, at an annual rate of 20%, by 2023, according to new figures unveiled by the Institute of Grocery Distribution (IGD).

Looking at the online growth opportunity in Europe, Jon Wright, head of retail insight EMEA at IGD, said: “We’re anticipating continued online growth opportunities across mature Western European markets.

“In the UK, France, Germany and Spain we forecast above market average growth rates for online grocery retailing, all growing in market share.

“It provides a significant growth opportunity as retailers and manufacturers in the region invest in personalisation, ease and convenience and combining online and offline to meet a range of shopper needs.”

Meanwhile, the global leader in grocery eCommerce, China, is set to grow at a 31% CAGR over the next five years, taking market share from 3.8% to 11.2%.

The Chinese online grocery market is expected grow by the same size as the entire combined market of all ten countries in 2018.

IGD also forecasts extensive growth in the US with online set to more than double its market share.

Commenting on online growth in Asia, IGD Asia’s programme director Shirley Zhu said: “China, Japan and South Korea are the Asian markets leading the way in online grocery shopping, and we’re seeing significant market share penetration in these three countries.

“They lead the way globally in terms of market share, and in 2023 all three will be nearing double digit share for online grocery, with South Korea over 14%.”

Addressing US online growth, IGD’s North American programme director Stewart Samuel said: “The US online grocery market has experienced a rapid pace of growth this year, driven by expanding services and new entrants.

“We’re seeing a major focus on offering same-day delivery with many companies partnering with Instacart to scale up quickly, including Aldi. Target acquired Shipt, enabling it to move its same-day delivery plans forward by about two years.

“Plated and Home Chef meal kit companies were acquired by Albertsons and Kroger respectively, enabling them to offer a multi-channel solution in the category, and we’re also seeing a strong pipeline of innovation including Walmart’s automated picking warehouse, Alphabot, Kroger’s partnership with Ocado and Albertsons’ online organic and natural foods marketplace.

“With all the developments in the market, and the rate at which retailers are entering the channel and expanding their offers, growth for the next five years is likely to be strong.”

US dollar figures reflect global market prices – the current exchange rate stands at $1 to 0.78 pound sterling.