Shifting consumer buying habits due to the pandemic’s onset and the continuous expansion of the e-commerce sector are driving the online grocery market in the United States.
According to TechSci Research report, “United States Online Grocery Market”– By Region, Competition Forecast and Opportunities, 2018-2028”, In recent years, US online grocery market has expanded significantly. Using a web-based shopping service to purchase food and other household essentials are known as “online grocery shopping.” These products can be bought online using one of two primary methods. One choice is to order them from a nearby grocery store online. Another alternative is to order groceries from a major company like Amazon or Net grocer that delivers the products to customers’ houses. One can order groceries using both smartphone applications and the e-commerce website. Grocery-related and non-grocery food grocery goods, such as dairy, fruits, vegetables, and other items, are available in online grocery alternatives. Retailers in this region offer services like click-and-collect alternatives and subscription options to simplify consumers’ online shopping experiences.
Online grocery shopping only makes up a small fraction of the US food business, but industry experts predict it will grow over the next few years. The market is anticipated to expand due to factors such as the growing millennial population, the expansion of leading companies’ business strategies, the incorporation of voice technologies, the increased demand for grocery applications, etc. However, constraints, including rising storage and delivery costs, the inability to verify groceries personally, fluctuating grocery item prices, etc., limit the market’s growth.
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The federal government’s instructions for shelter in place and the rise in persons putting themselves in self-quarantine due to Covid-19 helped the online grocery industry expand. More and more individuals are using smartphone apps and e-commerce websites to buy groceries, and many are doing so for the first time.
Despite this, the United States online grocery sales are primarily driven by the expanding penetration of smart devices and internet connectivity. Additionally, the market for online grocery is being stimulated by demanding consumer work schedules and an increase in the number of working women. Market expansion is also fueled by the emergence of e-commerce media and a growing preference for hassle-free shopping experiences.
While the COVID-19 pandemic has negatively impacted the economy of several sectors, e-commerce has grown due to Americans avoiding stores and ordering goods for pickup or delivery instead. Americans’ adoption of online grocery services has significantly benefited the online grocery sector. Customers now have a variety of alternatives and incentives to get their groceries online, thanks to the increase in the number of supermarkets that offer curbside pickup and the expanded functionality provided by grocery delivery apps. Due to convenience, many customers who tried online grocery shopping for the first time during the pandemic now prefer it.
The United States online grocery market is segmented into type, platform and region. Based on type, the market is segmented into packed food & beverages, personal care, household products, fruits & vegetables & others (pet care, baby care, etc.)). Among these, packed food & beverages hold the leading share in the market during the forecast period. The increasing availability of packed food & beverages in online grocery stores drives the segment’s growth, further increasing the market share and size of the online grocery market in the United States.
Based on the platform, the market is segmented into mobile applications and desktop websites. Among these, the mobile application holds the leading share in the market during the forecast period due to the increasing number of internet users in the United States, which fuels the demand for online grocery in the United States.
Based on region, the market is segmented into South, West, Mid-West, and North-East. Among these, the Mid-West region holds the leading share in the market during the forecast period due to the increasing number of smartphone and internet users in the region, which fuels the demand for the online grocery market in the US.
Major operating companies operating in the United States Online Grocery Market are:
- Walmart Inc.
- Amazon.com Inc.
- The Kroger Co.
- Fresh Direct LLC
- COSTCO WHOLESALE CORPORATION
- Maplebear Inc. (Instacart)
- Thrive Market, Inc.
- Target Brands, Inc.(Shipt)
- Safeway Inc. (Albertsons Investor Holdings LLC)
- Shopfoodex Co Inc.
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“The demand for grocery shopping in the United States through online channels is being driven by technological advancements, ongoing industrialization, and a paradigm shift in consumer buying patterns. Consumers are encouraged to choose online grocery shopping by introducing innovative business models by retailers, such as scheduled or expedited delivery and on-demand or subscription delivery models. The rising level of liquidity and the enticing discounts provided by service portals also significantly contribute to the market’s expansion in the United States.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
United States Online Grocery Market By Type (Packed Food & Beverages, Personal Care, Household Products, Fruits & Vegetables & Others (Pet Care, Baby Care, etc.)), By Platform (Mobile Application & Desktop Website), By Region, By Company, Forecast & Opportunities, 2018-2028F, has evaluated the future growth potential of US online grocery market and provides statistics & information on market size, structure, and future market growth. the report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the online grocery market in United States.
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