Table of Contents
Executive Summary
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- The issues
- Long-term growth to continue after 2020 spike
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- Figure 1: Total US online sales and forecast of groceries*, at current prices, 2015-25
- More grocery shoppers go online
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- Figure 2: Grocery shopping methods, February 2020
- Considerable interest in online among store-only shoppers
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- Figure 3: Interest in future online shopping among store-only shoppers, February 2020
- Preference for in-person selection keeps shoppers from buying online
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- Figure 4: Reasons for not shopping online for groceries more, February 2020
- The opportunities
- More frequent online grocery shoppers drawn by experiential factors
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- Figure 5: Reasons for shopping for groceries online, by online shopping frequency, February 2020
- Most frequent online shoppers prioritize fresh
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- Figure 6: Reasons for selecting online retailer used most often, by online shopping frequency, February 2020
- An opportunity to move more quick fill-in trips online
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- Figure 7: Preferred shopping method for different grocery trip types, February 2020
- Young shoppers hold a positive view and high expectations of online grocery
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- Figure 8: Attitudes toward online grocery shopping, by age, February 2020
Impact of COVID-19 on Grocery eCommerce
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- Figure 9: Short-, medium- and long-term impact of COVD-19 on grocery ecommerce, June 2020
- Opportunities and threats
- More grocery shoppers go online
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- Figure 10: Grocery shopping methods, February 2020
- Retailers, delivery services expand ecommerce capacity to meet increased demand
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- Figure 11: Coronavirus lifestyle changes – Online shopping, April-July 2020
- An opportunity to move more quick fill-in trips online
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- Figure 12: Preferred shopping method for different grocery trip types, February 2020
- Long-term success for ecommerce may hinge on shopper satisfaction during pandemic
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- Figure 13: Reasons for not shopping online for groceries more – Selection, by shopping method and online shopping frequency, February 2020
- Despite shift to ecommerce, pull of the store remains strong among some shoppers
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- Figure 14: Reasons for not shopping online for groceries more – Preference for in-store, by shopping method and online shopping frequency, February 2020
- Impact on grocery ecommerce
- After a brief dip, ecommerce gains share
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- Figure 15: Total ecommerce share of omni-channel food/drink sales, January-May 2020
- Long-term growth to continue after 2020 spike
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- Figure 16: Total US online sales and forecast of groceries*, at current prices, 2015-25
- How the crisis will affect grocery ecommerce’s key consumer segments
- Younger shoppers, focused on convenience, remain a key target
- Older shoppers emerge as new opportunity
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- Figure 17: Coronavirus lifestyle changes, June 11-24, 2020
- How a COVID-10 recession will reshape the grocery ecommerce industry
- Need to economize will focus some online shoppers on savings
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- Figure 18: Grocery shopping methods, by household income, February 2020
- COVID-19: US context
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The Market – What You Need to Know
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- Long-term growth to continue after 2020 spike
- Food and beverages driving growth
- Continued concern about exposure may keep grocery shoppers online
- Growth of online grocery amid pandemic follows broader ecommerce trend
Market Size and Forecast
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- Long-term growth to continue after 2020 spike
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- Figure 19: Total US online sales and forecast of groceries*, at current prices, 2015-25
Market Segmentation
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- Food and beverages driving growth
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- Figure 20: Total US online sales of groceries*, by segment, at current prices, 2015-20
Market Factors
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- Continued concern about exposure may keep grocery shoppers online
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- Figure 21: Coronavirus exposure and lifestyle disruption concerns – any worried, April-July 2020
- Desire to limit time spent in store remains strong
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- Figure 22: Coronavirus lifestyle changes – Online shopping, April-June 2020
- Growth of online grocery amid pandemic follows broader ecommerce trend
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- Figure 23: Total US retail ecommerce sales and forecast, at current prices, 2015-25
Key Players – What You Need to Know
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- Retailers, services expand eCommerce capacity to meet demand
- An opportunity to move more quick fill-in trips online
- An opportunity to move more quick fill-in trips online
What’s Happening
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- Retailers, services expand ecommerce capacity to meet demand
- An opportunity to move more quick fill-in trips online
What to Watch
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- Leveraging technology to make online shopping more idea-driven
- Ideas based on items in cart, previous purchases, and culinary preferences
- Taking items in the pantry into account
- Letting home appliances do the shopping
- Streamlining curbside pickup
The Consumer – What You Need to Know
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- Most grocery shopping still happens in-store, but online is gaining
- Center-store categories a focus of online shopping
- Considerable interest in online among store-only shoppers
- Current online shoppers may be biggest ecommerce growth opportunity
- Time-savings is key, but other factors likely to rise in importance
- Experience with online shopping helps to break down barriers
- Walmart closes gap on Amazon
- Most frequent online shoppers prioritize fresh
- Majority of online shoppers still prefer store for small trips
- Opportunity to break the routine of online grocery shopping
Grocery Shopping Overview
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- Most adults do at least some grocery shopping
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- Figure 24: Grocery shopping responsibility, by gender and age, February 2020
- Shopping frequency likely declining amid COVID-19
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- Figure 25: Grocery shopping frequency, by gender and age, February 2020
- Most grocery shopping still happens in-store, but online is gaining
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- Figure 26: Grocery shopping methods, by age, household income, and household size, February 2020
- Major categories online vs in-store
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- Figure 27: Major grocery categories, online vs instore, February 2020
Interest in Future Online Grocery Shopping
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- Considerable interest in online among store-only shoppers
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- Figure 28: Interest in future online shopping among store-only shoppers, February 2020
- Younger store-only shoppers more likely to express interest in online
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- Figure 29: Interest in future online shopping among store-only shoppers, by age, February 2020
- Current online shoppers may be biggest ecommerce growth opportunity
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- Figure 30: Anticipated amount of online shopping among online shoppers, February 2020
Reasons for Shopping Online
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- Time-savings is key, but other factors likely to rise in importance
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- Figure 31: Reasons for shopping for groceries online, February 2020
- More frequent online grocery shoppers drawn by experiential factors
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- Figure 32: Reasons for shopping for groceries online, by online shopping frequency, February 2020
Reasons for Not Shopping Online More
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- Preference for in-person selection keeps shoppers from buying online
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- Figure 33: Reasons for not shopping online for groceries more, February 2020
- Strong reassurances on fresh item selection needed to sway older shoppers
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- Figure 34: Reasons for not shopping online for groceries more, by age, February 2020
- Experience with online shopping helps to break down barriers
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- Figure 35: Reasons for not shopping online for groceries more, by shopping method and online shopping frequency, February 2020
Online Retailers for Grocery Purchasing
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- Walmart closes gap on Amazon
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- Figure 36: Online retailers for grocery purchasing, February 2020
- Frequent online shoppers more likely to look past Amazon, Walmart
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- Figure 37: Online retailers for grocery purchasing, by online shopping frequency, February 2020
Reasons for Selecting Online Retailer Used Most Often
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- Convenience outweighs price in online retailer selection
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- Figure 38: Reasons for selecting online retailer used most often, February 2020
- Younger online grocery shoppers especially attuned to value
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- Figure 39: Reasons for selecting online retailer used most often, by age, February 2020
- Most frequent online shoppers prioritize fresh
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- Figure 40: Reasons for selecting online retailer used most often, by online shopping frequency, February 2020
Preferred Shopping Methods
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- Majority of online shoppers still prefer store for small trips
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- Figure 41: Preferred shopping method for different grocery trip types, by frequency of online shopping, February 2020
Devices Used in Online Grocery Shopping
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- Mobile devices step into the lead
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- Figure 42: Devices used in online grocery shopping, February 2020
- Younger shoppers favor integrated mobile grocery shopping apps
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- Figure 43: Devices used in online grocery shopping, by age, February 2020
Attitudes toward Online Grocery Shopping
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- Opportunity to break the routine of online grocery shopping
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- Figure 44: Attitudes toward online grocery shopping, February 2020
- Young shoppers hold a positive view and high expectations of online grocery
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- Figure 45: Attitudes toward online grocery shopping, by age, February 2020
- Satisfaction with fresh foods key to higher online shopping frequency
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- Figure 46: Attitudes toward online grocery shopping, by online grocery shopping frequency, February 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
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