Table of Contents
Executive Summary
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- The issues
- Online grocery still small but growing fast
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- Figure 1: Total US online sales of groceries*, at current prices, 2014-19
- Most grocery shopping still happens in-store
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- Figure 2: Approach to grocery shopping, February 2019
- Lack of trust a substantial secondary issue
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- Figure 3: Reasons for not shopping for groceries online, February 2019
- The opportunities
- Practical reasons, especially time savings, drive online shopping
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- Figure 4: Reasons for shopping for groceries online, February 2019
- Younger grocery shoppers open to ideas as they shop online
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- Figure 5: Online shopping behaviors, by age, February 2019
- Satisfaction with fresh foods correlates with higher online shopping frequency
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- Figure 6: Attitudes toward online grocery shopping, by frequency of online shopping, February 2019
- What it means
The Market – What You Need to Know
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- Online grocery still small but growing fast
- Online food and beverages have momentum and room to grow
Market Size
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- Online grocery still small but growing fast
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- Figure 7: Total US online sales of groceries*, at current prices, 2014-19
Market Breakdown
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- Online food and beverages have momentum and room to grow
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- Figure 8: Total US online sales of groceries, by segment, at current prices, 2014-19
Market Factors
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- eCommerce overall continues to grow
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- Figure 9: eCommerce share of total US retail sales, at current prices, 2013-23
- Households with children in decline
Key Players – What You Need to Know
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- Traditional retailers invest in ecommerce
- Walmart expands pickup and delivery
What’s Happening?
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- Traditional retailers build ecommerce capabilities
- Kroger sees return on investment in ecommerce
- Walmart expands pickup and delivery
- Delivery price competition heats up, giving advantage to big players
What’s Next?
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- Bringing it home: developments along the last mile
- Autonomous vehicles
- A store on wheels
- The last yard
- Grocers moving toward meals online
The Consumer – What You Need to Know
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- Most grocery shopping still happens in-store
- Perimeter a focal point for growth of online grocery shopping
- Practical reasons, especially time savings, drive online shopping
- Lifestage and household composition drive online grocery shopping
- In-store shopping experience keeps many from shopping online
- Amazon claims most online shoppers as others work to catch up
- Frequent online shoppers especially focused on convenience and fresh
- Online grocery shoppers less likely to make a separate shopping list
- Frustrations relatively low among online grocery shoppers
- Satisfaction with fresh foods correlates with higher online shopping frequency
Grocery Shopping Overview
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- Most grocery shopping still happens in-store
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- Figure 10: Approach to grocery shopping, February 2019
- Older grocery shoppers a little less likely to shop online
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- Figure 11: Approach to grocery shopping, by age, February 2019
- Perimeter a focal point for growth of online grocery shopping
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- Figure 12: Approach to grocery shopping, by category, February 2019
- In their words: deciding what to buy online
- Preferred method by trip type
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- Figure 13: Preferred approach to shopping, by trip type, February 2019
Reasons for Shopping Online
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- Practical reasons, especially time savings, drive online shopping
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- Figure 14: Reasons for shopping for groceries online, February 2019
- Lifestage and household composition drive online grocery shopping
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- Figure 15: Reasons for shopping for groceries online, by age, February 2019
- Frequent online grocery shoppers especially attuned to time savings
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- Figure 16: Reasons for shopping for groceries online, by online shopping frequency, February 2019
- In their words: deciding when to shop online
- It’s about time
- Check the list
- Take control
Reasons for Not Shopping Online
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- In-store shopping experience keeps many from shopping online
- Lack of trust a substantial secondary issue
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- Figure 17: Reasons for not shopping for groceries online, February 2019
- Fewer barriers among younger shoppers
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- Figure 18: Reasons for not shopping for groceries online, by age, February 2019
Online Retailers for Grocery Purchasing
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- Amazon claims most online shoppers as others work to catch up
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- Figure 19: Online retailers for grocery purchasing, February 2019
- Amazon’s hold is strongest with lighter online grocery shoppers
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- Figure 20: Online retailers for grocery purchasing, by online shopping frequency, February 2019
Reasons for Selecting Online Retailer Used Most Often
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- Convenient pickup or delivery times especially important to 34-54s
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- Figure 21: Reasons for selecting online retailer used most often, by age, February 2019
- Frequent online shoppers especially focused on convenience and fresh
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- Figure 22: Reasons for selecting online retailer used most often, by online shopping frequency, February 2019
Online Shopping Behaviors
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- Online grocery shoppers less likely to make a separate shopping list
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- Figure 23: Shopping behaviors – Online vs in-store, February 2019
- Younger grocery shoppers open to ideas as they shop online
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- Figure 24: Online shopping behaviors, by age, February 2019
- List-making more important to heavier online shoppers
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- Figure 25: Online shopping behaviors, by online shopping frequency, February 2019
Frustrations with Online Grocery Shopping
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- Frustrations relatively low among online grocery shoppers
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- Figure 26: Frustrations with online grocery shopping, February 2019
- Shoppers aged 35-54 more likely to be frustrated by service-related issues
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- Figure 27: Frustrations with online grocery shopping, by age, February 2019
- In their words: frustrations with fulfillment
Attitudes toward Online Grocery Shopping
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- Interest in seeing/approving fresh purchases when shopping online
- Stores seen as more convenient for smaller purchases
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- Figure 28: Attitudes toward online grocery shopping, February 2019
- Satisfaction with fresh foods correlates with higher online shopping frequency
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- Figure 29: Attitudes toward online grocery shopping, by frequency of online shopping, February 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 30: Total US online sales of online groceries*, at current prices, 2014-19
- Figure 31: Total US online sales of online groceries*, at inflation-adjusted prices, 2014-19
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- Figure 32: Total US online sales of online groceries, by segment, at current prices, 2014-19
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