Report Description

The United States online grocery market is anticipated to grow at an impressive CAGR during the forecast period. Customers can order fresh and packaged goods like meat, seafood, cereals, fresh fruits and vegetables, dairy, cereals, snacks, drinks, and other cooking necessities through online grocery platforms. These platforms give customers flexible payment methods, let them choose delivery times, follow the delivery process, and access a large selection of products. As a result, internet groceries have grown in popularity in the US. Around 299 million people in the United States used the internet in 2021, an increase from over 288 million in 2020. In terms of online audience size, the United States is one of the largest internet markets in the world, following only China and India.

In the United States, more people are choosing to shop grocery online without trouble due to their busy schedules and heavy reliance on smartphones. Adults' internet uses also drive the online grocery market in the United States. In 2021, 93 percent of adults in the nation reported using the internet at least occasionally, up to only 76 percent in 2010. Additionally, the country's major companies are working with e-commerce sites to launch various supermarket items with contactless choices, boosting the market's expansion. They are also spending on celebrity endorsements to increase their current customer base. Furthermore, due to the U.S. Government's execution of complete lockdowns and ensuing supply chain disruptions, the coronavirus disease (COVID-19) epidemic has increased the desire for online groceries. In the next five years, online grocery sales will exceed 20% of the whole U.S. grocery retail market..

Key factors anticipated to propel the market's growth over the forecast period include shifting consumer behavior, rise in contactless shopping preferences and social distancing norms, and a paradigm shift toward online grocery and fresh food purchases, particularly in the wake of the COVID-19 pandemic.

Adopting Business Model for Click and Collect OR Buy Online Pick-up In Store (BOPIS) Fuels the Market Growth

Walmart is attracting customers for its online grocery market by consistently using its proximity to its client base and current brick-and-mortar footprint. To boost sales during this pandemic, Walmart and other retail mega corporations focus more on the Buy Online Pick-up in Store (BOPIS) approach. In the past few years, the rate of grocery shop online has reasonably more than doubled. By providing the Amazon Fresh service, Amazon is dominating the US online grocery business. Amazon's innovative strategy for grocery stores includes a collect-and-click option that allows customers to pick up online grocery shopping within a 15- to 2-hour time span. The e-commerce company also provides private-label products and checkout-free grocery shopping through Amazon Go.

Fast Delivery Service Fuels the Market Growth

The US online grocery market is advanced enough to combine same-day or immediate delivery with click-and-collect. Comparing this model to those of more developed foreign marketplaces reveals considerable differences. In the US, food delivery services offering contactless shopping experiences are moving toward same-day delivery, enabling more supermarkets to collaborate with outside providers like Instacart to expand their value proposition for e-commerce quickly. Additionally, food delivery services like Uber Eats and DoorDash have expanded into grocery delivery in the US, and Amazon Fresh continues gaining traction, further driving the online grocery market in the United States. Also, the retailing giant Walmart is now gradually boosting its aerial cooperation with DroneUp to new heights with the debut of expanded drone delivery services in 2022. This would enable them to serve potential customers in about 4 million residences across six US states. And Albertsons Cos. supermarket chain Safeway is testing a remote-controlled grocery delivery cart in Northern California in partnership with automated logistics specialist Tortoise.

Introducing the Shopping Subscription Fuels the Market Growth

Another aspect fueling the market's expansion is the increase in subscription shopping services. Most of the market's top players provide customers with a subscription option. For instance, to help customers save money and time, Walmart launched a new membership model that includes in-store and online benefits. Members will get unlimited free shipping from retailers, fuel discounts, and access to resources that help families shop more quickly. A 15-day free trial period is included in the USD98 annual price, which works out to USD12.95 per month. The business will use its capabilities to benefit members across multiple services and offerings. Also, Kroger Co. provides a "Delivery Savings Pass," an annual subscription program that costs USD79. Customers can purchase delivery savings pass for just USD79 per year, giving them access to an entire year of unlimited free grocery delivery on purchases of USD35 and higher placed through the website or mobile app of The Kroger Co Family of Stores. It offers the advantages of free delivery, such as waiving the UDS9.95 delivery fee on every grocery order of USD35 or more.