Food and Drink E-Commerce in Turkey

2020 IMPACT

Food and drink e-commerce is another clear winner, thanks to unprecedented growth of online grocery shopping due to COVID-19

Food and drink e-commerce was another winner in 2020, due to the significant increase in consumers ordering their groceries online due to COVID-19 factors. This unprecedented level of growth is not only a result of more frequent use by consumers, but also due to much higher level of investment from the side of the grocery retailers, alongside the expansion of the consumer base with many first-time users becoming online grocery shoppers.

Multiple grocery players embrace online shopping services to meet changed consumer trends

Growth is also coming from the online stores of established grocery retailers, from dedicated online grocery delivery companies such as Banabi, Getir and Istegelsin, alongside other hyperlocal deliveries from all sizes of small chained and independent grocery outlets. Many players have embraced online delivery services as a way of remaining profitable in 2020 by adapting to meet changed consumer needs.

Migros named as a leading player, as a number of marketplaces sign partnerships with grocery retailers

Migros Tic AS is named as a leading player in 2020, thanks to the success of its Migros Hemen platform. Migros has strong brand awareness and high levels of consumer trust, making it a go-to option for many consumers.

RECOVERY AND OPPORTUNITIES

Gains made from the rapid enforced development of the category in 2020 will stick over the forecast period

Over the review period, food and drink e-commerce was one of the slow developing sub-categories of e-commerce. As a non-discretionary spending category, necessity due to COVID-19 conditions forced the hand of consumers and providers to develop the grocery e-commerce space in the space of one short year.

Increase in discounter brands offering e-commerce solutions further stimulates competition in the category

An increasing amount of discounter brands are expected to embrace food and drink e-commerce over the forecast period, thus to offer the dual benefits of cheap prices and convenience. All the large discounter brands, such as Bim Sok and A101, already have online delivery as an option and will be expanding their offerings further over the forecast period.

Established grocery retailers expand their geographical reach for delivery services across the country

Established grocery retailers such as Migros and Carrefour increased their e-commerce presence considerably in 2020, building on the strength of their online services which had already been launched. Within this, such players are also expanding their geographical reaches by increasing the number of neighbourhoods in which they offer delivery services.