Already recording notable growth momentum over the review period, the pandemic accelerated demand for food and drink e-commerce, with current value sales increasing by triple digits in 2020. Although grocery retailers such as supermarkets and other stores offering essential food items were permitted to remain open during the lockdowns as they were deemed to be essential stores, many local consumers could not leave their homes if they were in quarantine, while others did not want to due to fear of exposure to the virus in crowded public spaces.
While e-commerce continues to penetrate the grocery space, digital solutions are also increasingly making their way into physical grocery retailers through the use of self-checkouts and mobile wallets. However, leading player in grocery retailers, Shufersal, has launched a mobile app featuring a barcode scanner, which customers can use when they visit the stores.
The ultra-Orthodox population in Israel is less immersed in e-commerce in general, and in particular mobile usage. However, third party delivery service Quik has begun to collaborate with mobile companies that provide customised smartphones to ultra-Orthodox consumers that offer added protection.
Food and drink e-commerce is expected to develop further over the forecast period in line with advances in both technological capabilities and locations. An increasing number of retailers and third party platforms will focus on grocery orders and offer quick and convenient deliveries in a wider range of locations.
Shufersal Online was the leading food and drink e-commerce retailer in Israel in 2021. Its online platform is more advanced than other online grocery sites due to being established for longer.
Despite Shufersal Online’s established presence and familiarity amongst local consumers, it is likely to experience increasing competition as other grocery retailers or pure online players launch mobile apps and operate dark stores to fulfil the continual demand for food and drink e-commerce. For instance, Sonol Israel launched a new online supermarket in 2021, offering free delivery during its initial phase with a minimal order spend of ILS75, while aiming to deliver to consumers’ homes within 2.
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Internet retailing sales of food and drink (all packaged and fresh food and drink (hot drinks, soft drinks and alcoholic drinks).
See All of Our DefinitionsThis report originates from Passport, our Food and Drink Internet Retailing research and analysis database.
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