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.


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Market Segmentation

United States online grocery market is segmented into type, platform, region, and company. Based on type, the market is segmented into packed food & beverages, personal care, household products, fruits & vegetables & others (pet care, baby care, etc.). Based on platform, the market is segmented into mobile application and desktop website. Based on region, the market is segmented into South, West, Mid-West and North-East. California (56.5%), Washington (55.3%), Massachusetts (54.7%), District of Columbia (53.4%), Virginia (53.0%) are the US states which makes the most internet purchases.

Market Players

Walmart Inc., Amazon.com Inc., The Kroger Co., Fresh Direct LLC, COSTCO WHOLESALE CORPORATION, Maplebear Inc. (Instacart), Thrive Market, Inc., Target Brands, Inc.( Shipt), Safeway Inc. (Albertsons Investor Holdings LLC), Shopfoodex Co Inc. are the major market players in United States online grocery market.

Attribute

Details

Base Year

2022

Historic Data

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

·         Type

·         Platform

·         Region

Regional scope

South, West, Mid-West, North-East

Key companies profiled

Walmart Inc., Amazon.com Inc., The Kroger Co., Fresh Direct LLC, COSTCO WHOLESALE CORPORATION, Maplebear Inc. (Instacart), Thrive Market, Inc., Target Brands, Inc.(Shipt), Safeway Inc. (Albertsons Investor Holdings LLC), Shopfoodex Co Inc., etc.

Customization scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

 

Report Scope:

In this report, United States online grocery market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • United States Online Grocery Market, By Type:
    • Packed Food & Beverages
    • Personal Care
    • Household Products
    • Fruits & Vegetables
    • Others
  • United States Online Grocery Market, By Platform:
    • Mobile Application
    • Desktop Website
  • United States Online Grocery Market, By Region:
    • South
    • West
    • Mid-West
    • North-East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in United States online grocery market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).
United States Online Grocery Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.1.1.    Respondent Demographics

4.1.2.    By Gender

4.1.3.    By Age

4.1.4.    By Occupation

4.2.  Brand Awareness

4.3.  Frequency of Ordering

4.4.  Preferred Mode of Buying

4.5.  Factors Influencing Purchase Decision

4.6.  Challenges Faced Post Purchase

5.    United States Online Grocery Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value        

5.2.  Market Share & Forecast

5.2.1.    By Type Market Share Analysis (Packed Food & Beverages, Personal Care, Household Products, Fruits & Vegetables & Others (Pet Care, Baby Care, etc.))

5.2.2.    By Platform Market Share Analysis (Mobile Application & Desktop Website)

5.2.3.    By Regional Market Share Analysis

5.2.3.1.        South Market Analysis

5.2.3.2.        West Market Analysis

5.2.3.3.        Mid-West Market Analysis

5.2.3.4.        North-East Market Analysis

5.2.4.    By Company Market Share Analysis

5.3.  United States Market Mapping & Opportunity Assessment

5.3.1.    By Type Market Mapping & Opportunity Assessment

5.3.2.    By Platform Market Mapping & Opportunity Assessment

5.3.3.    By Regional Market Mapping & Opportunity Assessment

6.    United States Online Packaged Food & Beverages Market Outlook

6.1.  Market Size & Forecast       

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Category (Food Grains & Pulses, Snacks, Bread & Bakery, Others (Dairy Products, Confectionery, Meat & Poultry Products, etc.))

6.2.2.    By Platform Market Share Analysis

7.    United States Online Personal Care Outlook

7.1.  Market Size & Forecast       

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Category (Face Care, Body Care, Hair Care & Others (Oral Care, Lip Care))

7.2.2.    By Platform Market Share Analysis

8.    United States Online Household Product Market Outlook

8.1.  Market Size & Forecast       

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Category (Laundry, Kitchen & Others (Bathroom, Floor Cleaner, etc.)

8.2.2.    By Platform Market Share Analysis

9.    United States Online Fruits & Vegetables Market Outlook

9.1.  Market Size & Forecast       

9.1.1.    By Value

9.2.  Market Share & Forecast

9.2.1.    By Category (Fresh & Frozen)

9.2.2.    By Platform Market Share Analysis

10. Supply Chain Analysis

11. Market Dynamics

11.1.             Drivers

11.1.1.1.    Adopting Business Model for Click and Collect OR Buy Online Pick-up In Store (BOPIS)

11.1.1.2.    Fast Delivery Service

11.1.1.3.    Introducing the Shopping Subscription

11.2.             Challenges

11.2.1. Inefficiencies in the Delivery Process

11.2.2. High Cost of Delivery & Storage

11.2.3. Price Fluctuation

12. Impact of COVID-19 on United States Online Grocery Market

12.1.             Impact Assessment Model

12.1.1. Key Segments Impacted

12.1.2. Key Regions Impacted

13. Market Trends & Developments

13.1.             Increased Use of Shopping Applications

13.2.             Voice Technology Integration

13.3.             Social Media's Growing Influence

13.4.             Digital Presence Optimization

13.5.             Increasing Internet Penetration

14. SWOT Analysis

14.1.             Strength

14.2.             Weakness

14.3.             Opportunities

14.4.             Threats

15. Porter’s Five Forces Model

15.1.             Competition Landscape

15.2.             Buyer Power

15.3.             Supplier Power

15.4.             Threat of New Entrants

15.5.             Threat of Substitutes

16. Competitive Landscape

16.1.             Competition Outlook

16.2.             Company Profiles

16.2.1.1.     Walmart Inc.

16.2.1.2.     Company Details

16.2.1.3.     Products & Services

16.2.1.4.     Financials (As Reported)

16.2.1.5.     Key Market Focus & Geographical Presence

16.2.1.6.     Recent Developments

16.2.1.7.     Key Management Personnel

16.2.2. Amazon.com Inc.

16.2.2.1.     Company Details

16.2.2.2.     Products & Services

16.2.2.3.     Financials (As Reported)

16.2.2.4.     Key Market Focus & Geographical Presence

16.2.2.5.     Recent Developments

16.2.2.6.     Key Management Personnel

16.2.3. The Kroger Co.

16.2.3.1.     Company Details

16.2.3.2.     Products & Services

16.2.3.3.     Financials (As Reported)

16.2.3.4.     Key Market Focus & Geographical Presence

16.2.3.5.     Recent Developments

16.2.3.6.     Key Management Personnel

16.2.4. Fresh Direct LLC

16.2.4.1.     Company Details

16.2.4.2.     Products & Services

16.2.4.3.     Financials (As Reported)

16.2.4.4.     Key Market Focus & Geographical Presence

16.2.4.5.     Recent Developments

16.2.4.6.     Key Management Personnel

16.2.5. COSTCO WHOLESALE CORPORATION

16.2.5.1.     Company Details

16.2.5.2.     Products & Services

16.2.5.3.     Financials (As Reported)

16.2.5.4.     Key Market Focus & Geographical Presence

16.2.5.5.     Recent Developments

16.2.5.6.     Key Management Personnel

16.2.6. Maplebear Inc. (Instacart)

16.2.6.1.     Company Details

16.2.6.2.     Products & Services

16.2.6.3.     Financials (As Reported)

16.2.6.4.     Key Market Focus & Geographical Presence

16.2.6.5.     Recent Developments

16.2.6.6.     Key Management Personnel

16.2.7. Thrive Market, Inc.

16.2.7.1.     Company Details

16.2.7.2.     Products & Services

16.2.7.3.     Financials (As Reported)

16.2.7.4.     Key Market Focus & Geographical Presence

16.2.7.5.     Recent Developments

16.2.7.6.     Key Management Personnel

16.2.8. Target Brands, Inc.(Shipt)

16.2.8.1.     Company Details

16.2.8.2.     Products & Services

16.2.8.3.     Financials (As Reported)

16.2.8.4.     Key Market Focus & Geographical Presence

16.2.8.5.     Recent Developments

16.2.8.6.     Key Management Personnel

16.2.9. Safeway Inc. (Albertsons Investor Holdings LLC)

16.2.9.1.     Company Details

16.2.9.2.     Products & Services

16.2.9.3.     Financials (As Reported)

16.2.9.4.     Key Market Focus & Geographical Presence

16.2.9.5.     Recent Developments

16.2.9.6.     Key Management Personnel

16.2.10.              Shopfoodex Co Inc.

16.2.10.1.  Business Overview

16.2.10.2.  Company Details

16.2.10.3.  Products & Services

16.2.10.4.  Financials (As Reported)

16.2.10.5.  Key Market Focus & Geographical Presence

16.2.10.6.  Recent Developments

16.2.10.7.  Key Management Personnel

17. Strategic Recommendations/Action Plan

17.1.             Key Focus Areas

17.2.             Target Regions

17.3.             Target Type

About Us & Disclaimer

Figures and Tables

Frequently asked questions

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Customers who purchase for their groceries primarily online increased to 28.3 percent.

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Online grocery has benefited greatly from the COVID-19 epidemic, which is one of its main impacts. Consumers quickly shifted to online channels, and as a result of these channels' enhanced convenience, consumer habits and expectations changed over time.

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Amazon will continue to be the top online grocery retailer in the United States in 2022, with net e-commerce sales of 48.3 billion dollars, according to projections made in April of 2022.

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Walmart Inc., Amazon.com Inc., The Kroger Co., Fresh Direct LLC, COSTCO WHOLESALE CORPORATION, Maplebear Inc. (Instacart), Thrive Market, Inc., Target Brands, Inc. (Shipt), Safeway Inc. (Albertsons Investor Holdings LLC), Shopfoodex Co Inc. are the key players in the United States online grocery market.

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Parvati Sharma

Account Manager BD
Press Release

United States Online Grocery Market to be dominated by Packed Food & Beverages During the Forecast Period

Nov, 2022

Shifting consumer buying habits due to the pandemic''s onset and the continuous expansion of the e-commerce sector are driving the online grocery market in the United States.