DUBLIN–(BUSINESS WIRE)–The U.S. Online Grocery Market, By Type (Packaged Food & Beverages, Personal Care, Household Products, Fruits & Vegetables, and Others (Pet Care, Baby Care, etc.)), By Platform Form (Mobile App & Desktop Website), by Region, By Company, Forecast & Opportunity, 2018-2028F report has been added to from ResearchAndMarkets.com offer.
The U.S. Online Grocery Market is Expected to Grow at an Impressive CAGR During the Forecast Period
Customers can order fresh and packaged products such as meat, seafood, cereals, fresh fruits and vegetables, dairy products, cereals, snacks, drinks and other kitchen products through platforms groceries online. These platforms offer customers flexible payment methods, allow them to choose delivery times, track the delivery process and access a wide selection of products.
As a result, internet grocery stores have gained popularity in the United States. About 299 million people in the United States used the Internet in 2021, compared to more than 288 million in 2020. In terms of online audience, the United States is one of the largest Internet markets in the world, after China and India.
In the United States, more and more people are choosing to shop online without hassle due to their busy schedules and heavy reliance on smartphones. Adult Internet usage is also driving the online grocery market in the United States. In 2021, 93% of adults nationwide said they use the internet at least occasionally, up from just 76% in 2010.
Moreover, major companies across the country are working with e-commerce sites to launch various supermarket items with contactless choices, boosting market expansion. They also spend on celebrity endorsements to increase their current customer base.
Additionally, due to the U.S. government’s execution of comprehensive shutdowns and resulting supply chain disruptions, the coronavirus disease (COVID-19) outbreak has heightened the desire to do the online grocery store. Within the next five years, online grocery sales will exceed 20% of the entire US retail grocery market.
The major factors that are expected to propel the market growth over the forecast period include changing consumer behavior, rising contactless shopping preferences and social distancing norms, and a paradigm shift towards the online grocery and fresh food purchases, especially in the wake of the COVID-19 pandemic.
Adoption of Click and Collect OR Buy Online Pick Up In Store (BOPIS) business model is fueling market growth
Walmart attracts customers for its online grocery marketplace by consistently utilizing its customer proximity and current physical footprint. To drive sales during this pandemic, Walmart and other retail mega-corporations are focusing more on the Buy Online Pick-up in Store (BOPIS) approach.
Over the past few years, the rate of online grocery shopping has reasonably more than doubled. By providing the Amazon Fresh service, Amazon dominates the online grocery industry in the United States. Amazon’s innovative strategy for grocery stores includes a collect and click option that allows customers to shop online within 15 to 2 hours. The e-commerce company also offers private label products and cashless grocery shopping through Amazon Go.
Fast Delivery Service Fuels Market Growth
The US online grocery market is advanced enough to combine same-day or immediate delivery with click-and-collect. Comparing this model with those of more developed foreign markets reveals considerable differences. In the United States, food delivery services offering contactless shopping experiences are moving towards same-day delivery, allowing more supermarkets to collaborate with external providers like Instacart to rapidly expand their retail value proposition. electronic.
Additionally, food delivery services like Uber Eats and DoorDash have expanded into grocery delivery in the United States, and Amazon Fresh continues to gain traction, further driving the online grocery market in the United States. United. Additionally, retail giant Walmart is gradually boosting its aerial cooperation with DroneUp to new heights with the launch of expanded drone delivery services in 2022.
This would allow them to serve potential customers in approximately 4 million residences in six US states. And Albertsons Co. supermarket chain Safeway is testing a remote-controlled grocery delivery cart in Northern California in partnership with automated logistics specialist Tortoise.
Introduction of Shopping Subscription Fuels Market Growth
Another aspect that is fueling the expansion of the market is the increase in subscription shopping services. Most major market players offer customers a subscription option. For example, to help customers save money and time, Walmart launched a new membership model that includes in-store and online benefits.
Members will enjoy unlimited free shipping to retailers, fuel discounts and access to resources that help families shop faster. A 15-day free trial period is included in the annual price of 98 USD, which is equivalent to 12.95 USD per month. The company will use its capabilities to benefit members through multiple services and offers.
Also, Kroger Co. offers a “Delivery Savings Pass”, an annual subscription program that costs 79 USD. Customers can purchase a pass for just $79 per year, which gives them access to an entire year of free, unlimited grocery delivery on purchases of $35 or more placed through the website or mobile app. from the Kroger Co. family of stores. It offers the benefits of free shipping, such as waiving the delivery charge of 9.95 UDS on every grocery order of $35 or more.
Regional distribution
Based on region, the market is segmented into south, west, mid-west and north-east. California (56.5%), Washington (55.3%), Massachusetts (54.7%), the District of Columbia (53.4%), Virginia (53.0%) are the US states that make the most purchases on the Internet.
Market dynamics
Market trends and developments
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Increased use of shopping apps
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Voice technology integration
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Growing influence of social media
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Digital Presence Optimization
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Increase internet penetration
Drivers
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Adopt a business model to click and collect OR buy online, pick up in store (BOPIS)
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Fast delivery service
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Shopping subscription overview
Challenges
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Inefficiencies in the delivery process
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High cost of delivery and storage
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price fluctuation
Competitive landscape
Company Profiles: Detailed analysis of the major companies operating in the US online grocery market.
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Walmart Inc.
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Amazon.com Inc.
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The Kroger Company.
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Direct LLC Fees
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COSTCO WHOLESALE COMPANY
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Maple Bear Inc. (Instacart)
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Thrive Market, Inc.
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Target Brands, Inc. (Ship)
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Safeway Inc. (Albertsons Investor Holdings LLC)
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Shopfoodex Co Inc.
Impact of COVID-19 on the US online grocery market
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Impact Evaluation Template
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Key segments affected
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Key regions affected
Report Scope:
U.S. Online Grocery Market, By Type:
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Packaged food and beverages
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Personal care
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Household products
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Fruits and vegetables
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Others
U.S. Online Grocery Market, By Platform:
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Mobile app
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desktop website
U.S. online grocery market, by region:
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South
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West
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Mid-West
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Northeast
For more information on this report, visit https://www.researchandmarkets.com/r/4nltnj
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