The second half of 2024 is a good time to reflect on the state of the online grocery industry. The year has been another one marked by growth, continuing the trend that kicked off during the 2020 pandemic. This branch of retail is well-established and thriving, as online grocery shopping statistics will show.
This article compiles insightful data that paints a picture of the online grocery shopping landscape as of August 2024. Let’s examine the numbers and what they mean for online grocery retailers.
Online grocery shopping statistics: Market size
Online grocery exploded because of the pandemic, but the convenience offered to online shoppers has a lasting, worldwide appeal. Even today, the global online grocery market continues to grow.
The global revenue of the online food delivery market is $1.04 trillion. That valuation includes groceries ($640 billion) and meal deliveries ($390 billion).
This thriving market is supported by an estimated 1.4 billion monthly consumers. They choose online grocery services for various reasons, which vary from country to country.
In the US, the top three reasons US shoppers buy groceries online were:
- Saving time (77% of shoppers)
- Avoiding impulse purchases (41% of shoppers)
- Ease of comparing products and prices (38% of shoppers)
With many good reasons to use these services, online grocery shopping statistics for the US market demonstrate a continuous boom.
Over 138 million consumers shop for groceries online in the US, and more will do so in the future. Furthermore, the industry is set to generate $257 billion in revenue in the US this year.
Those who doubted that online shopping would continue to thrive when the pandemic restrictions were removed have been proved wrong.
The US online grocery market has grown with every passing year. This June, online grocery in the US generated $7.7 billion in revenue.
This is an increase of 8% compared to the same month in 2023.
Online grocery shopping statistics: Major players
From corner stores to major brands, there are grocery businesses of every size in the US.
According to a market report published in June, there are over 62,000 grocery stores and supermarkets in the US.
However, not all of these stores have embraced the future, which is online grocery.
Reports show that there are approximately 5,970 online grocery businesses in the US. This means only about 9.5% are taking advantage of the increased opportunities found online.
As the market becomes even more lucrative, retailers would be wise to take steps toward digital transformation of their stores. This is reflected in how the total number of grocery businesses decreased by around 0.9% between 2022 and 2023.
The number of online grocery businesses grew by 19.9% in the same period.
As more players enter the field, the biggest names continue to maintain their strong positions. The top five companies in the US online grocery industry account for nearly 70% of all grocery ecommerce sales.
Here are the five biggest retailers and their revenue figures:
- Walmart: $49.3 billion
- Amazon: $36.4 billion
- The Kroger Co.: $14.7 billion
- Target: $7.5 billion
- Albertsons Companies: $5.6 billion
Online grocery shopping statistics: Consumer habits
As logistical problems like delivery times and freshness of goods are solved, ordering groceries online becomes increasingly attractive. That’s why drastic changes are happening in short amounts of time in the online grocery industry.
Today, online grocery shopping statistics show that most consumers have become very comfortable with the practice.
According to a 2024 report from FMI (The Food Industry Association), 67% of consumers shop for groceries online. And these aren’t just one-off purchases either.
Another report from last year found that 40% of online grocery shoppers use these services on a weekly basis.
The popularity of online grocery stores means that consumers are visiting brick-and-mortar stores less frequently.
However, that doesn’t mean they are spending any less money. According to data compiled by Drive Research, the average online grocery shopping session costs shoppers $174.
There could be various reasons behind why customers are spending more on online groceries than before, such as:
- Inflation
- Changing dietary preferences
- Switching brands
Future trends for online grocery
The future of online grocery looks to be both busy and bright. Busy because growing market penetration will bring in more customers and more competition.
Bright because as the number of shoppers increases, the number of opportunities for retailers to succeed also increases.
The trend for online grocery shopping statistics shows it will become the largest ecommerce category in the US in 2026.
It will account for 19% of all ecommerce sales in the country. In the following years, we will see a continuation of the upward trajectory of the online grocery market.
By 2029, the market size is expected to increase at a compound annual growth rate (CAGR) of 12.07%.
Online grocery store owners must be prepared to cater to this booming market. One way to stand out from the competition is to emphasize sustainability.
It is quickly becoming a top priority, with 28% of consumers willing to pay more for sustainable products.
Younger shoppers, like Gen Z (49%) and millennials (48%), are willing to pay a premium. It is clear that sustainability will be an even more significant selling point in the future.
Succeeding in online grocery in 2024
Online grocery shopping statistics clearly show that it has tremendous promise as an industry. For grocery retailers willing to implement digital transformation, grocery ecommerce could be a major boost for your business.
Find the best grocery ecommerce platform, like Wave Grocery, to make your transition to the world of online grocery sales a smooth one.
