The Booming Online Grocery Market in the US: Trends and Statistics
May 22, 2024The online grocery market in the United States has experienced tremendous growth in recent years. This blog post will delve into key statistics and trends shaping this market, providing insights into its future trajectory.
US Online Grocery Market Growth
In the United States, online grocery sales have been on a steep upward trajectory. According to eMarketer, online grocery sales grew by 54% in 2020, reaching $95.82 billion. In 2023, this figure kept growing further, with a compound annual growth rate (CAGR) of 11.7% expected over the next five years, reaching 13.6% of total grocery sales by 2027.
| Year | Market Value (in billion USD) |
|---|---|
| 2019 | 62.21 |
| 2020 | 95.82 |
| 2023 | 146.0 |
| 2027 (projected) | 257.5 |
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Impact of COVID-19 on Internet Grocery Sales
The COVID-19 pandemic significantly accelerated the growth of online grocery sales. In the US, there was a 230% increase in online grocery sales in April 2020 compared to the same period in 2019. The average order value for online grocery purchases increased by 27% in April 2020 due to stockpiling during the pandemic.
| Metric | Percentage Increase |
|---|---|
| Sales Growth (April 2020 vs. April 2019) | 230% |
| Average Order Value Increase | 27% |
US Online Grocery Shopping Demographics
Online grocery shoppers in the US tend to be more affluent, with 39% of shoppers coming from households with an income of $100,000 or more. Millennials are leading the charge in online grocery shopping, with 60% of US millennials having bought groceries online in the past month.
Top Retailers in the US E-grocery market
Amazon remains the leading online grocery retailer in the US, holding a 38.4% market share. However, Walmart is also a significant player, with 65% of American consumers having bought groceries from Walmart online. As of Q2 2023, Walmart's share of the US eGrocery market has grown to 36%.
| Retailer | Market Share |
|---|---|
| Amazon | 38.4% |
| Walmart | 36% |
| Others | 25.6% |
Future Projections for the US digital grocery market
The US online food retail market is expected to continue its growth trajectory. By 2027, the market is projected to reach $257.5 billion, reflecting the increasing shift towards online grocery shopping. The most significant growth is anticipated in Pickup services, which are expected to account for more than half of online grocery sales by 2027 (Supermarket News).
Conclusion
The E-grocery market in the US is rapidly evolving, driven by changes in consumer behavior and the lasting impact of the COVID-19 pandemic. As an ecommerce store, Cozy Farm is well-positioned to capitalize on these trends. By understanding the demographics, preferences, and behaviors of online grocery shoppers, we can better serve our customers and continue to grow in this dynamic market.