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.