The grocery industry is often portrayed as a laggard in adopting ecommerce technology. This perception is fed in part by the lower pace of consumer adoption for groceries when compared to other items. Increased smartphone usage is a major contributing factor to the increased adoption of online grocery shopping. The ease of buying things online on a mobile device that is never very far from the user makes it convenient to order groceries in between other important things.
United States online grocery shopping has become common in urban and suburban areas, with many consumers opting for home delivery or curbside pickup options. The market for online grocery stores in the United States is primarily driven by rising disposable income and a growing preference for comfort. Ordering groceries is made simple and convenient by online grocery stores. It saves time, and different assets additionally give a broad scope of food as well as non-staple items. The rising millennial populace and developing internet business market have additionally added fuel to the development of the market. Besides, the improvement of plans of action by predominant players and a mix of voice innovation will additionally drive the development of the market. Smartphones are widely used for online shopping because they are simple to use and let users buy products through mobile apps. As a result, the market is expected to expand in tandem with the rising number of smartphone users over the forecast period.
United States Online Grocery Market Survey
In 2022, the Eating and Health Module captured for the first time nationally representative data concerning the prevalence and frequency of U.S. residents who report shopping for groceries online. The survey data revealed that nearly 9 out of 10 individuals aged 15 and older (87.2 percent) reported they usually grocery shopped for their household, either online or in-person.
Of these, approximately 2 in 10 (19.3 percent) had bought groceries online at least once in the last 30 days.
The frequency of online shopping varied. Among those who had bought groceries online in the past month, 30.2 percent did so once, 25.1 percent made two online grocery purchases, and 44.7 percent purchased groceries online three or more times.
- April 2023: 24% of men and 22% of women shopped for groceries online weekly
- July 2023: 44% of women shopped for groceries once a week, and 31% of men shopped two to three times a week
- 2023: 65% of millennials shopped for groceries online monthly
United States Online Grocery Company Analysis
Some of the prominent company in the United States Online Grocery market includes, Tesco Plc, Walmart Inc, Instacart, The Kroger Co, Costco Wholesale Corporation, Target Corporation, FreshDirect and Peapod Online Grocer, LLC.United States Online Grocery Company News
In April 2022, BigBasket announced to expand its quick commerce business across India and harness the benefits of the fast-growing market. As a part of this expansion, the company projects to build 700 offline stores to cover the entire range of grocery retail.In March 2022, Instacart launched "The Instacart Platform," a suite of enterprise-grade technologies designed to revolutionize the grocery industry. With this innovative offering, Instacart aims to empower retailers and enhance the consumer experience, catering to various shopping preferences.
In May 2022, With the launch of extended drone delivery services, the retailing behemoth Walmart is now steadily elevating its aerial cooperation with DroneUp to new heights. They would be able to service potential clients in around 4 million homes spread across six US states thanks to this.
In April 2021, FreshDirect, a pure-play online grocer, was acquired by Ahold Delhaize and private equity firm Centerbridge Partners.
In March 2021, in collaboration with automated logistics expert Tortoise, Albertsons Cos. supermarket chain Safeway is testing a remote-controlled grocery delivery cart in Northern California.
In November 2021, the e-commerce behemoth Amazon announced that the merger of its food businesses Fresh and Pantry into a single, consolidated store called Amazon Fresh was complete.
Product
1. Vegetables and Fruits2. Dairy Products
3. Staples and Cooking Essentials
4. Snacks
5. Meat & Seafood
6. Others
Purchaser Type
1. Subscription Purchase2. One Time Purchase
Delivery Type
1. Click & Collect2. Home Delivery
All the companies have been studied from three points
1. Overview2. Recent Development
3. Revenue Analysis
Key Players
1. Tesco Plc.2. Walmart Inc.
3. Instacart
4. The Kroger Co.
5. Costco Wholesale Corporation
6. Target Corporation
7. FreshDirect
8. Peapod Online Grocer, LLC
Table of Contents
Companies Mentioned
- Tesco Plc.
- Walmart Inc.
- Instacart
- The Kroger Co.
- Costco Wholesale Corporation
- Target Corporation
- FreshDirect
- Peapod Online Grocer, LLC
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 100 |
| Published | May 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 159.54 Billion |
| Forecasted Market Value ( USD | $ 622.92 Billion |
| Compound Annual Growth Rate | 16.3% |
| Regions Covered | United States |
| No. of Companies Mentioned | 8 |
