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Online Grocery Retailing - US - June 2019

Covered in this report

This report focuses on all retail channels that sell grocery products online including internet-only retailers as well as the ecommerce operations of traditional supermarkets, warehouse clubs, natural markets, drug stores, dollar stores, convenience stores and specialty food retailers.

Groceries overall are defined as products such as food, beverages, household goods (eg cleaning products, toilet paper, garbage bags) and/or personal care products. The primary focus of research in this Report is food and beverages.

"Online grocery sales remain only a small portion of total US grocery sales, but are growing rapidly, more than doubling over the past five years. That growth is likely to continue as more young adults take on grocery shopping responsibility and as retailers continue to strengthen and expand grocery delivery and store pickup services. Overcoming the hesitation of less-frequent online grocery shoppers to purchase fresh foods online could help accelerate overall online grocery sales growth even further."
- John Owen, Senior Food & Drink Analyst

This report looks at the following areas:

  • Online grocery still small but growing fast
  • Most grocery shopping still happens in-store
  • Lack of trust a substantial secondary issue

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Online grocery still small but growing fast
            • Figure 1: Total US online sales of groceries*, at current prices, 2014-19
          • Most grocery shopping still happens in-store
            • Figure 2: Approach to grocery shopping, February 2019
          • Lack of trust a substantial secondary issue
            • Figure 3: Reasons for not shopping for groceries online, February 2019
          • The opportunities
            • Practical reasons, especially time savings, drive online shopping
              • Figure 4: Reasons for shopping for groceries online, February 2019
            • Younger grocery shoppers open to ideas as they shop online
              • Figure 5: Online shopping behaviors, by age, February 2019
            • Satisfaction with fresh foods correlates with higher online shopping frequency
              • Figure 6: Attitudes toward online grocery shopping, by frequency of online shopping, February 2019
            • What it means
            • The Market – What You Need to Know

              • Online grocery still small but growing fast
                • Online food and beverages have momentum and room to grow
                • Market Size

                  • Online grocery still small but growing fast
                    • Figure 7: Total US online sales of groceries*, at current prices, 2014-19
                • Market Breakdown

                  • Online food and beverages have momentum and room to grow
                    • Figure 8: Total US online sales of groceries, by segment, at current prices, 2014-19
                • Market Factors

                  • eCommerce overall continues to grow
                    • Figure 9: eCommerce share of total US retail sales, at current prices, 2013-23
                  • Households with children in decline
                  • Key Players – What You Need to Know

                    • Traditional retailers invest in ecommerce
                      • Walmart expands pickup and delivery
                      • What’s Happening?

                        • Traditional retailers build ecommerce capabilities
                          • Kroger sees return on investment in ecommerce
                            • Walmart expands pickup and delivery
                              • Delivery price competition heats up, giving advantage to big players
                              • What’s Next?

                                • Bringing it home: developments along the last mile
                                  • Autonomous vehicles
                                    • A store on wheels
                                      • The last yard
                                        • Grocers moving toward meals online
                                        • The Consumer – What You Need to Know

                                          • Most grocery shopping still happens in-store
                                            • Perimeter a focal point for growth of online grocery shopping
                                              • Practical reasons, especially time savings, drive online shopping
                                                • Lifestage and household composition drive online grocery shopping
                                                  • In-store shopping experience keeps many from shopping online
                                                    • Amazon claims most online shoppers as others work to catch up
                                                      • Frequent online shoppers especially focused on convenience and fresh
                                                        • Online grocery shoppers less likely to make a separate shopping list
                                                          • Frustrations relatively low among online grocery shoppers
                                                            • Satisfaction with fresh foods correlates with higher online shopping frequency
                                                            • Grocery Shopping Overview

                                                              • Most grocery shopping still happens in-store
                                                                • Figure 10: Approach to grocery shopping, February 2019
                                                              • Older grocery shoppers a little less likely to shop online
                                                                • Figure 11: Approach to grocery shopping, by age, February 2019
                                                              • Perimeter a focal point for growth of online grocery shopping
                                                                • Figure 12: Approach to grocery shopping, by category, February 2019
                                                              • In their words: deciding what to buy online
                                                                • Preferred method by trip type
                                                                  • Figure 13: Preferred approach to shopping, by trip type, February 2019
                                                              • Reasons for Shopping Online

                                                                • Practical reasons, especially time savings, drive online shopping
                                                                  • Figure 14: Reasons for shopping for groceries online, February 2019
                                                                • Lifestage and household composition drive online grocery shopping
                                                                  • Figure 15: Reasons for shopping for groceries online, by age, February 2019
                                                                • Frequent online grocery shoppers especially attuned to time savings
                                                                  • Figure 16: Reasons for shopping for groceries online, by online shopping frequency, February 2019
                                                                • In their words: deciding when to shop online
                                                                  • It’s about time
                                                                    • Check the list
                                                                      • Take control
                                                                      • Reasons for Not Shopping Online

                                                                        • In-store shopping experience keeps many from shopping online
                                                                          • Lack of trust a substantial secondary issue
                                                                            • Figure 17: Reasons for not shopping for groceries online, February 2019
                                                                          • Fewer barriers among younger shoppers
                                                                            • Figure 18: Reasons for not shopping for groceries online, by age, February 2019
                                                                        • Online Retailers for Grocery Purchasing

                                                                          • Amazon claims most online shoppers as others work to catch up
                                                                            • Figure 19: Online retailers for grocery purchasing, February 2019
                                                                          • Amazon’s hold is strongest with lighter online grocery shoppers
                                                                            • Figure 20: Online retailers for grocery purchasing, by online shopping frequency, February 2019
                                                                        • Reasons for Selecting Online Retailer Used Most Often

                                                                          • Convenient pickup or delivery times especially important to 34-54s
                                                                            • Figure 21: Reasons for selecting online retailer used most often, by age, February 2019
                                                                          • Frequent online shoppers especially focused on convenience and fresh
                                                                            • Figure 22: Reasons for selecting online retailer used most often, by online shopping frequency, February 2019
                                                                        • Online Shopping Behaviors

                                                                          • Online grocery shoppers less likely to make a separate shopping list
                                                                            • Figure 23: Shopping behaviors – Online vs in-store, February 2019
                                                                          • Younger grocery shoppers open to ideas as they shop online
                                                                            • Figure 24: Online shopping behaviors, by age, February 2019
                                                                          • List-making more important to heavier online shoppers
                                                                            • Figure 25: Online shopping behaviors, by online shopping frequency, February 2019
                                                                        • Frustrations with Online Grocery Shopping

                                                                          • Frustrations relatively low among online grocery shoppers
                                                                            • Figure 26: Frustrations with online grocery shopping, February 2019
                                                                          • Shoppers aged 35-54 more likely to be frustrated by service-related issues
                                                                            • Figure 27: Frustrations with online grocery shopping, by age, February 2019
                                                                          • In their words: frustrations with fulfillment
                                                                          • Attitudes toward Online Grocery Shopping

                                                                            • Interest in seeing/approving fresh purchases when shopping online
                                                                              • Stores seen as more convenient for smaller purchases
                                                                                • Figure 28: Attitudes toward online grocery shopping, February 2019
                                                                              • Satisfaction with fresh foods correlates with higher online shopping frequency
                                                                                • Figure 29: Attitudes toward online grocery shopping, by frequency of online shopping, February 2019
                                                                            • Appendix – Data Sources and Abbreviations

                                                                              • Data sources
                                                                                • Sales data
                                                                                  • Consumer survey data
                                                                                    • Consumer qualitative research
                                                                                      • Direct marketing creative
                                                                                        • Abbreviations and terms
                                                                                          • Abbreviations
                                                                                            • Terms
                                                                                            • Appendix – The Market

                                                                                                • Figure 30: Total US online sales of online groceries*, at current prices, 2014-19
                                                                                                • Figure 31: Total US online sales of online groceries*, at inflation-adjusted prices, 2014-19
                                                                                                • Figure 32: Total US online sales of online groceries, by segment, at current prices, 2014-19

                                                                                            Online Grocery Retailing - US - June 2019

                                                                                            £3,435.47 (Excl.Tax)