2020 was a year of profound acceleration for online sales, and in particular, for food and drink e-commerce with the level of demand reaching values not previously expected to be reached in such a short period of time. This trend was felt all over the world and Portugal was no exception.
In 2020, marketplace Dott and national postal service CTT collaborated on a project that brought traditional markets to the digital space. With notable restrictions on the movement of consumers and retailers’ activities, traditional grocery markets saw their business shrink; however, Dott and CTT presented an alternative channel to support these producers and allow them to access customers.
After the delivery of meals and other smaller items, ranging from packages of nappies/diapers to pharmaceutical items, Glovo has expanded its reach to deliver larger grocery orders. To this end, the online platform acquired the Portuguese company Mercadão in September 2021, which was originally created in 2018 to ensure the delivery of online purchases from Pingo Doce and other brands.
Although food and drink e-commerce witnessed unprecedented growth in 2020 followed by another impressive performance in 2021, the fact is that the share of total grocery sales ordered online remains low in Portugal and below the Western European average. This fact provides the channel with high potential for further dynamic growth over the forecast period.
Improved offers and specific services that are perceived to offer greater value are likely to remain part of retailers’ strategic focus. This means a wider offer, a personalised experience and an excellent service that meets or even exceeds consumers’ expectations.
Following a global trend, grocery retailers are set to become more adept at providing consistent updates to online customers with valuable, real-time order status information, which reduces the friction between in-store control and online convenience. The personalisation of the shopping experience, with the suggestion of articles relevant to the customer's purchasing profile or specific diet, is also set to rise.
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Understand the latest market trends and future growth opportunities for the Food and Drink Internet Retailing industry in Portugal with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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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