Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- The issues
- The majority of respondents prefer to personally select their own food and drink
-
- Figure 1: Barriers to entry, August 2016
- 27% of shoppers still want assistance from store clerks
-
- Figure 2: Attitudes toward technology and shopping – Store clerk, August 2016
- Shoppers are slow to adopt food/drink delivery options
-
- Figure 3: Attitudes toward technology and shopping – Delivery/pick-up, August 2016
- The opportunities
- Cost savings leads interest in technology, followed by time savings
-
- Figure 4: Desired benefits of technology, August 2016
- Money savings websites and retailer sites lead types of tech used
-
- Figure 5: Food and drink shopping technology usage and awareness – Currently using, August 2016
- Consolidation of services may improve stickiness
- What it means
The Market - What You Need to Know
-
- Adoption of online shopping grows, but food/drink categories are not as quick to benefit
- Food/drink shoppers are growing accustomed to alternative channels
- Women and Millennials control a large share of food/drink shopping responsibility
- Smartphone ownership and app usage suggest opportunity for mobile engagement
Market Perspective
-
- Food and drink sales move beyond the grocery store
- Consumers continue to adopt online shopping
- Barriers remain for online food/drink purchase, but online share is expected to grow
-
- Figure 6: Categories avoided in online shopping, April 2016
- Expansion of foodservice delivery could help normalize online food/drink shopping
Market Factors
-
- Women represent the majority of primary shoppers
-
- Figure 7: Grocery shopping responsibility, by gender, August 2016
- Millennials make up 40% of primary grocery shoppers
-
- Figure 8: Grocery shopping responsibility, by generation, August 2016
- Mobile carries a third of online sales
-
- Figure 9: US mobile shopping sales vs online shopping sales via desktop, 2014 and 2016
- 81% of consumers have smartphones
-
- Figure 10: Mobile device ownership, August 2016
- Three quarters of consumers use mobile apps daily
-
- Figure 11: Time spent using mobile apps, July 2016
Key Players – What You Need to Know
-
- Amazon keeps innovating
- Walmart prioritizes the development of online resources
- Third party food/drink delivery providers continue to gain investor support
- Consolidation of services may improve stickiness
What’s Working?
-
- Amazon keeps innovating
-
- Figure 12: Extent of online shopping conducted on Amazon, April 2016
- Grocery retailers are boosting their online presence
- Walmart prioritizes development of online resources, customer service
- Food delivery providers gain investor support
What’s Struggling?
-
- Food and drink shopping tech misses the why
-
- Figure 13: Food and drink launches, by share of leading claims, 2012 and 2016
- Tech needs to push beyond inconvenience
What’s Next?
-
- Consolidation can boost convenience
- Consumers like to reap rewards
- Emphasizing relevance through personalization
-
- Figure 14: Attitudes toward technology and shopping – Push notifications, August 2016
-
- Figure 15: Attitudes toward technology and shopping – Push notifications, by generation, August 2016
- Encouraging connection
-
- Figure 16: App download inspirations, July 2016
- Engage through empowerment
The Consumer – What You Need to Know
-
- 71% of food and drink shoppers use tech as part of their shopping experience
- Money savings websites and retailer sites lead types of tech used
- Cost savings is the strongest driver of technology usage
- Barriers to utilization largely tie to a comfort with the status quo
- Shoppers are still slow to adopt food/drink delivery options
Food and Drink Shopping Technology Usage and Awareness
-
- 71% of food and drink shoppers use tech as part of their shopping experience
- Half of food and drink shoppers use tech while in the store
-
- Figure 17: Technology used when shopping for food and drink – NETs, August 2016
- Money savings websites and retailer sites lead usage
-
- Figure 18: Food and drink shopping technology usage and awareness – Currently using, August 2016
- Interest in delivery/mobile pay still challenged
-
- Figure 19: Food and drink shopping technology usage and awareness, August 2016
- Men are more likely than women to order for delivery/pick-up
-
- Figure 20: Technology used when shopping for food and drink – Delivery/pick-up, by gender, August 2016
- Women are more likely to use traditional sites, men get onboard in-store
-
- Figure 21: Food and drink shopping technology usage and awareness – Currently using, by gender, August 2016
- iGens/Millennials most likely users of shopping technology
-
- Figure 22: Technology used when shopping for food and drink – NET*, by generation, August 2016
-
- Figure 23: Food and drink shopping technology usage and awareness – Currently using, by generation, August 2016
- Eight in 10 Asian shoppers use tech when shopping for food/drink
-
- Figure 24: Technology used when shopping for food and drink – NET*, by race, August 2016
- White and Asian shoppers are most likely to use food/drink shopping tech
-
- Figure 25: Food and drink shopping technology usage and awareness – Currently using, by race, August 2016
- High earners are primary users of technology
-
- Figure 26: Food and drink shopping technology usage and awareness – Currently using, by HH income, August 2016
- Key driver analysis – Likelihood of in-store purchase
- Consumers under the age of 55 who earn $75K+ are most likely to use tech while in-store
-
- Figure 27: Key drivers of use of technology in-store, August 2016
- Key driver analysis – Likelihood of delivery
- Urban dwellers under the age of 45 who earn $100K+ are most likely to use grocery delivery services
-
- Figure 28: Key drivers of use of technology for delivery, August 2016
What Food and Drink Shoppers Want from Technology
-
- Cost savings leads interest in technology, followed by time savings
-
- Figure 29: Desired benefits of technology, August 2016
- Women are particularly money conscious
-
- Figure 30: Desired benefits of technology, by gender, August 2016
- Food/drink tech can help newer shoppers learn about products
-
- Figure 31: Desired benefits of technology, by generation, August 2016
- Younger shoppers are interested in help making responsible choices
-
- Figure 32: Desired benefits of technology – Responsibility, by generation, August 2016
- Delivery and food management could appeal to Hispanic shoppers
-
- Figure 33: Desired benefits of technology, by Hispanic origin, August 2016
- Interest in money savings is not limited to lower earners
-
- Figure 34: Desired benefits of technology, by HH income, August 2016
- Parents seek help with making healthy choices/meal planning
-
- Figure 35: Desired benefits of technology – Information, by parental status, August 2016
Barriers to Using Food/Drink Shopping Tech
-
- The majority of respondents prefer to pick out their own food and drink
-
- Figure 36: Barriers to entry, August 2016
- 27% of shoppers still want human interaction
-
- Figure 37: Attitudes toward technology and shopping – Store clerk, August 2016
- A quarter of shoppers agree self-checkout can be a hassle
-
- Figure 38: Attitudes toward technology and shopping – Self checkout, August 2016
- Men are not as particular about picking out their own items
-
- Figure 39: Barriers to entry, by gender, August 2016
- Reminding young people to use the technology available will be key
-
- Figure 40: Barriers to entry, by generation, August 2016
- Time appears as a barrier for some of the most time-strapped shoppers
-
- Figure 41: Barriers to entry, by employment status, August 2016
-
- Figure 42: Barriers to entry, by parental status, August 2016
- Asian shoppers don’t want to be bombarded with offers, but are OK with social sharing
-
- Figure 43: Barriers to entry, by race, August 2016
Delivery/Pick-up
-
- Non-perishables lead delivery/pick-up
- Boosting delivery/pick-up participation may come from a focus on hard-to-find items
-
- Figure 44: Food and beverages purchased for deliver/pick-up, August 2016
- Free delivery would only sway a third of shoppers
-
- Figure 45: Attitudes toward technology and shopping – Delivery/pick-up, August 2016
- Price incentive plays a stronger role for women
-
- Figure 46: Attitudes toward technology and shopping – Delivery/pick-up, by gender, August 2016
- Millennials are willing to pay for delivery
-
- Figure 47: Attitudes toward technology and shopping – Delivery/pick-up, by generation, August 2016
- Three in 10 consumers worry about the quality of delivered goods
-
- Figure 48: Attitudes toward technology and shopping – Delivery concerns, August 2016
-
- Figure 49: Attitudes toward technology and shopping – Delivery concerns, by gender, August 2016
-
- Figure 50: Attitudes toward technology and shopping – Delivery concerns, by race, August 2016
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Consumer qualitative research
- Key driver analysis methodology
- Interpretation of results – Use of technology while in-store
-
- Figure 51: Key drivers of use of technology in-store – Key driver output, August 2016
- Interpretation of results – Use of technology for delivery
-
- Figure 52: Key drivers of use of technology for delivery – Key driver output, August 2016
- Abbreviations and terms
- Abbreviations
Appendix – Key Players
-
-
- Figure 53: Food and Drink launches, by leading claims, 2012-16*
-
Back to top