Online Grocery Market Size & Analysis (The Future of Online Grocery Shopping)

Online Grocery Market Size & Analysis (The Future of Online Grocery Shopping)

7222 Views
0 Comments

Angela – Sam, we need to go grocery shopping.

Sam – I have Clippers game coming up and I need to watch it. Can we go tomorrow?

Angela – No, you can watch it later. We decided to go grocery shopping in the afternoon and that’s what we are going to do.

Sam – Ok, as you say.

Sam and Angela go to a local grocery store. They spend the whole afternoon buying groceries, while Sam misses his Clippers game. They come back home all exhausted.

In the near future

Angela – Sam, we need to go grocery shopping.

Sam – I have a Clippers game coming up and I need to watch it. Why don’t you visit the xyz.com website and buy groceries online? 

Angela – Sure, I’ll go ahead and order groceries online. 

By the time the Clippers game ends, the groceries are delivered at Sam and Angela’s doorsteps. They didn’t have to spend the afternoon at a local grocery store. They were able to utilize that time in other activities, without worrying about grocery shopping.

The change is currently underway as consumers have started buying groceries online. Currently, it is one of the few sectors that is experiencing substantial growth. With much of our daily lives revolving around the internet, online grocery is wagered to be the next big industry for entrepreneurs.

Suggested ReadMust-have features in an online grocery store

This is driving many brick and mortar grocery stores to launch their online outlets and avoid going redundant in the near future. 

Where does the market stand as of today

Amazon is the global leader in eCommerce. So when Amazon enters into a new sector, it sends a strong message about that sector’s profit-bearing potential. This is the feeling that everyone got when Amazon started offering online grocery shopping.

Other examples of online grocery marketplaces are FreshDirect, ShopFoodEx, Kroger, and Instacart. All of these are US-based and offer home delivery of grocery items. These eGrocery sites have enhanced the customer experience by making the grocery delivery process easy and efficient. 

If we look at the online grocery industry analysis for the last year, online purchases of fresh groceries and consumer packaged goods enjoyed a 36% year-over-year growth spurt. This tremendous growth has exceeded all projections and expectations, triggering a race among entrepreneurs to launch their own eGrocery store.

As this booming industry picks up pace, the larger share of revenue will go to the participants who are quick to announce their business. 

Online shopping has matured enough and consumers have become accustomed to buying things online. This has removed the hurdles faced by other eCommerce sectors in the past where they had to first earn the trust of consumers. The best part of online grocery shopping is that consumers can easily select delivery slots preferred by them. This results in the timely delivery of products as per the requirement of the consumers.

Suggested Read – Setting up Online Grocery Business in 2019? Here Is What You Need to Know

What is the future of online grocery shopping

grocery store market analysisThere are several reports that suggest the eGrocery market in the US alone could grow five folds over the next decade, where consumers are expected to spend upwards of $100 billion. This is a promising forecast and the same is expected to be witnessed all across the globe.

While currently, only 14% of American households are buying groceries online, in the next year, this figure could jump up to 70 percent. This makes the current period as the best time to launch a fully-fledged online grocery store.

The eGrocery store market analysis state that by the end of 2018, nearly 20 million new consumers will adopt online grocery shopping. Out of them, 85% would be willing to use at-home delivery while the rest would go for in-store pickup. Amazon Go is one such example of the latter where people just walk in and pick up the product they want without worrying about standing in the queue for payment. Walmart is also working on a similar concept, where people could simply order their products online then go to a physical store in their locality and pick up their orders without standing in the queue.

Retailers providing an interactive website experience to their consumers will carry a competitive edge in the online grocery market. Already numerous online grocery stores have received funding amounting to millions of dollars from VCs. 

eGrocery is expected to be one of the fastest-growing sectors reaching US$ 84460 million by 2024. The leading players in the global grocery market are Walmart, Amazon, Kroger, FreshDirect, and Target have all started offering online grocery services to their customers. Every player has witnessed an increase in the customer satisfaction level in the past 10 years.

The mobile app service provided by online grocery companies along with the rapid improvement in speed and availability of same-day delivery has made the customer experience better than ever. Grocery mobile apps have contributed to the overall grocery store sales and the estimated usage of such apps is expected to grow from 18 million in 2018 to 30.4 million in 2022 among US customers.

Conclusion

In the next few years, we’ll see a reduced number of people in the offline stores as most of the shopping will move online. Improved delivery methods like drones and robust logistics will further add to the growth of online grocery shopping. This is the perfect time for anyone to start their own online venture by using a ready-to-launch solution.

Launch your online grocery store now

Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date. We advise - the readers should not take decisions completely based on the information and views shared by FATbit on its blog, readers should do their own research to further assure themselves before taking any commercial decision. The 3rd party trademarks, logos and screenshots of the websites and mobile applications are property of their respective owners, we are not directly associated with most of them.



Leave a Comment


CAPTCHA Image
Reload Image