Table of Contents
Executive Summary
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- The issues
- Most food and beverage shopping still happens in-store
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- Figure 1: Approach to food and beverage shopping, December 2018
- Most center-store categories still shopped mainly in-store
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- Figure 2: Shopping methods by category – Top five online development, December 2018
- Satisfaction with in-store experience is a barrier to online purchase
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- Figure 3: Barriers to purchasing packaged food and beverages online, December 2018
- The opportunities
- Experience with online shopping helps to break down barriers
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- Figure 4: Barriers to purchasing packaged food and beverages online, by approach to shopping, December 2018
- Heaviest online shoppers look beyond discounts
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- Figure 5: Factors that would encourage more online shopping, by shopping approach, December 2018
- Leveraging in-store experience to support online (and vice versa)
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- Figure 6: Attitudes toward online food and beverage shopping – Shopping enjoyment, by shopping method, December 2018
- What it means
The Market – What You Need to Know
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- Online groceries growing but account for only a tiny portion of total
- Broader ecommerce trends impact grocery sector
- Millennials take on more grocery shopping responsibility
- Americans are trying to eat healthier
Market Perspective
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- Online groceries growing but account for only a tiny portion of total
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- Figure 7: Total online sales of food and drink*, at current prices, 2013-18
Market Factors
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- Broader ecommerce trends impact grocery sector
- Millennials take on more grocery shopping responsibility
- Households with children on the decline
- Most consumers report making an effort to eat healthy
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- Figure 8: Approaches to healthy eating, May 2018
- Young adults far more likely to see barriers to healthy eating
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- Figure 9: Barriers to healthy eating, by gender and age, May 2018
Key Players – What You Need to Know
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- Traditional retailers invest in ecommerce
- Pursuing alternate online channels could help big CPGs build brands
What’s Happening?
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- Traditional retailers invest in ecommerce
- Kroger sees return on investment in ecommerce
- Leveraging Kroger’s direct marketing expertise
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- Figure 10: Kroger online shopping promotional email, February 2019
- Walmart leverages strong store brands as it expands pickup and delivery
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- Figure 11: Walmart delivery promotional email featuring bulk-size products, February 2019
- Figure 12: Walmart delivery promotional email facilitating reordering, February 2019
- Figure 13: Amazon prime pantry promotional email, January 2019
What’s Next?
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- Pursuing alternate online channels could help big CPGs build brands
- As online grocery shopping grows, private label could play a bigger role
The Consumer – What You Need to Know
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- Most food and beverage shopping still happens in-store
- Online shoppers more likely to be motivated by a range of specific needs
- Most center-store categories still shopped mainly in-store
- Time savings motivate online packaged food and beverage purchases
- Satisfaction with in-store experience is a barrier to online purchase
- Amazon claims most online shoppers overall and most loyal shoppers
- Online shoppers more likely to compare prices at the store level
- List-making mainly an in-store shopping exercise
- Heaviest online shoppers look beyond discounts
- A streamlined process could bring more center-store purchases online
- Leveraging in-store experience to support online (and vice versa)
Online Food and Beverage Shopping Overview
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- Most food and beverage shopping still happens in-store
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- Figure 14: Approach to food and beverage shopping, December 2018
- Younger adults more likely to shop for food and beverages online
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- Figure 15: Approach to food and beverage shopping, by age, December 2018
- Nearly half of in-store shoppers express interest in online shopping
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- Figure 16: Interest in online food and beverage shopping among in-store shoppers, December 2018
- Online shoppers more likely to be motivated by a range of specific needs
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- Figure 17: Food shopping priorities, by shopping approach, December 2018
- Smart phones increasingly dominant in online grocery shopping
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- Figure 18: Devices used for online food and beverage shopping, December 2018
Shopping Methods for Center-store Categories
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- Most center-store categories still shopped mainly in-store
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- Figure 19: Shopping methods by category, December 2018
- Top five center-store categories in online development
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- Figure 20: Shopping methods by category – Top five online development, December 2018
- Bottom five center-store categories in online development
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- Figure 21: Shopping methods by category – Bottom five online development, December 2018
Why Do People Purchase Online?
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- Time savings motivate online packaged food and beverage purchases
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- Figure 22: Reasons for purchasing packaged food and beverages online, December 2018
- Younger online shoppers more likely to appreciate a range of factors
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- Figure 23: Reasons for purchasing packaged food and beverages online, by age, December 2018
What Keeps Shoppers from Buying Online?
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- Satisfaction with in-store experience is a barrier to online purchase
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- Figure 24: Barriers to purchasing packaged food and beverages online, December 2018
- Preference for the tangible aspects of in-store shopping cuts across age groups
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- Figure 25: Barriers to purchasing packaged food and beverages online, by age, December 2018
- Experience with online shopping helps to break down barriers
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- Figure 26: Barriers to purchasing packaged food and beverages online, by approach to shopping, December 2018
Where Do People Buy Online?
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- Amazon claims most online shoppers overall and most loyal shoppers
- Other online sellers trail in total and most-often shoppers
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- Figure 27: Retailers for online purchases of packaged food and beverages, December 2018
- Younger shoppers more likely to shop around
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- Figure 28: Retailers for online purchases of packaged food and beverages, by age, December 2018
Center Store Shopping Behaviors – In-store vs Online
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- Online shoppers more likely to compare prices at the store level
- List-making mainly an in-store shopping exercise
- Label-reading less likely to happen online
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- Figure 29: Center-store shopping behaviors – in-store vs online, December 2018
- Most frequent online shoppers less likely to compare prices
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- Figure 30: Center-store shopping behaviors – Online, by shopping approach, December 2018
Factors to Encourage More Online Shopping
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- Not surprisingly, most shoppers respond to reduced fees and discounts
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- Figure 31: Factors that would encourage more online shopping, December 2018
- Heaviest online shoppers look beyond discounts
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- Figure 32: Factors that would encourage more online shopping, by shopping approach, December 2018
Attitudes toward Online Food and Beverage Shopping
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- Online shopping seen as best suited to larger stock-up trips
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- Figure 33: Attitudes toward online food and beverage shopping – Stock-up vs smaller trips, by shopping method, December 2018
- A streamlined process could bring more center-store purchases online
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- Figure 34: Attitudes toward online food and beverage shopping, by shopping method, December 2018
- Leveraging in-store experience to support online (and vice versa)
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- Figure 35: Attitudes toward online food and beverage shopping – Shopping enjoyment, by shopping method, December 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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