Online Grocery Market - United States

Market Statistics

Market Size in 2023: USD 150.8 Billion

Market Forecast in 2032: USD 615.9 Billion

Market Growth Rate: 16.4% (2024-2032)

According to the latest report by IMARC Group, the United States online grocery market reached USD 150.8 Billion in 2023. Looking forward, expects the market to reach USD 615.9 Billion by 2032, exhibiting a growth rate (CAGR) of 16.4% during 2024-2032. The market is expanding rapidly, fueled by increasing consumer preference for convenience and digital shopping experiences. The rise of e-commerce platforms and home delivery services is driving market growth. Advancements in technology and personalized offerings are further enhancing the customer experience.

United States Online Grocery Industry Trends and Drivers:

• Growing Consumer Preference for Online Grocery Shopping:

• • More consumers are choosing to purchase groceries online due to the convenience and time-saving benefits associated with e-commerce.
  • The COVID-19 pandemic accelerated the adoption of online grocery shopping as individuals explored contactless shopping options.

• Increased Investment in Digital Platforms and Delivery Capabilities:

• • Retailers are investing heavily in enhancing their digital platforms and expanding delivery services to meet rising consumer demand.
  • Improved digital platforms offer seamless shopping experiences, while advanced delivery capabilities enable same-day or next-day delivery.

• Demand for Personalized Shopping Experiences:

• • The integration of artificial intelligence (AI) and data analytics is enabling more personalized product recommendations and improving customer satisfaction.
  • Retailers are leveraging these technologies to provide tailored shopping experiences based on consumer preferences.

• Rising Popularity of Subscription Models:

• • Subscription models for essential items are gaining traction, with consumers opting for regular deliveries to simplify their shopping routines.
  • Subscription services help retailers build customer loyalty and ensure repeat purchases.

• Increased Demand for Fresh, Organic, and Locally Sourced Products:

• • The growing preference for healthier eating habits is shaping the product offerings available through online grocery platforms.
  • Consumers are seeking fresh produce, organic items, and locally sourced products, which has led to the expansion of these categories in online grocery stores.

• Focus on Sustainability:

• • Sustainability concerns are driving companies to adopt eco-friendly packaging and reduce their carbon footprint in the supply chain.
  • Retailers are prioritizing sustainable practices to attract environmentally conscious consumers.

Key Market Drivers

• Rising Demand for Convenience:

• • Busy lifestyles are leading consumers to seek time-saving shopping solutions, such as online grocery platforms.
  • The ability to shop for groceries from the comfort of home is appealing to a broad range of consumers.

• Advancements in Mobile Apps and Digital Platforms:

• • The rise of mobile apps and digital platforms has made online grocery shopping more accessible and user-friendly.
  • The integration of user-friendly interfaces and advanced search functions enhances the overall shopping experience.

• Logistics and Last-Mile Delivery Services:

• • Advancements in logistics and last-mile delivery services enable retailers to offer timely deliveries, enhancing the overall customer experience.
  • Same-day and next-day delivery options are particularly attractive to consumers seeking fast and efficient service.

• Growing Internet and Smartphone Penetration:

• • The increasing penetration of high-speed internet and smartphones is expanding the reach of online grocery services.
  • More consumers can now access online platforms, contributing to the overall market growth.

• Healthier Eating Habits and Specialty Foods:

• • The shift toward healthier eating habits is driving demand for specialty foods and items that cater to specific dietary needs.
  • Online grocery platforms are expanding their offerings to include fresh produce, organic items, and specialty foods.

• Urbanization and Growing Urban Population:

• • The growing urban population is contributing to the market’s growth, as urban consumers are more likely to utilize online grocery services due to limited time and availability of delivery options.

• Loyalty Programs and Subscription Models:

• • Loyalty programs and subscription models are becoming increasingly popular, encouraging repeat purchases and enhancing customer retention.
  • These programs offer additional value to consumers, boosting brand loyalty and long-term engagement.

The convergence of these trends and drivers is positioning the United States online grocery market for sustained growth and continued innovation in response to evolving consumer demands and technological advancements.

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United States Online Grocery Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others

Breakup by Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others

Breakup by Platform:

• Web-Based
• App-Based

Breakup by Purchase Type:

• One-Time
• Subscription

Breakup by Region:

• Northeast
• Midwest
• South
• West

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Request for customization: https://www.imarcgroup.com/request?type=report&id=3309&flag=F

Key highlights of the Report:

• Market Performance (2018-2023)
• Market Outlook (2024-2032)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

Key Questions Answered in This Report:

What is the U.S. online grocery market share?

The U.S. online grocery market holds a significant share in the retail sector, driven by the rising adoption of e-commerce platforms and advanced logistics, contributing to its strong growth trajectory.

How big is the online grocery delivery market in the US?

The U.S. online grocery delivery market is valued at approximately USD 150.8 billion in 2023 and is forecasted to reach USD 615.9 billion by 2032, showcasing a robust growth rate of 16.4%.

What percentage of Americans order groceries online?

Around 70% of Americans order groceries online, influenced by the convenience of home delivery, curbside pickup options, and personalized shopping experiences.

What is the share of digital grocery sales in the US?

Digital grocery sales make up a growing portion of the U.S. grocery market, with e-commerce channels driving substantial revenue growth as consumers increasingly turn to online platforms for their shopping needs.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services.  IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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