Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Online Grocery Shopping - US - August 2018

"Despite doubling from 2013-18, online grocery sales in the US remain a small proportion of total grocery sales and an even smaller proportion of total eCommerce. Unlike other major product categories, adoption of online shopping in this sector has been slow, namely due to consumers’ strong preference to shop in-store, coupled with concerns about food arriving fresh and undamaged upon delivery. Still, as with total eCommerce, online grocery ordering will increase, with younger generations leading the way."

– Diana Smith, Associate Director - Retail & Apparel

This report examines the following issues:

  • Grocery is the anomaly when it comes to eCommerce
  • Online grocery shopping still seen as too risky 
  • Perishables least likely to be purchased online

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • The issues
            • Grocery is the anomaly when it comes to eCommerce
              • Figure 1: Total US online sales of groceries*, at current prices, 2013-18
            • Online grocery shopping still seen as too risky
              • Figure 2: Top five reasons for not shopping on grocery store websites, April 2018
            • Perishables least likely to be purchased online
              • Figure 3: Least likely food/drink items to be purchased online, February 2018
            • The opportunities
              • Younger consumers will lead grocery eCommerce
                • Figure 4: Interest in future online shopping, by age, April 2018
              • Leverage the physical store
                • Figure 5: Shopping preferences, April 2018
              • Focus on what consumers are actually buying online
                • Use incentives and satisfaction guarantees
                  • Figure 6: Influencers to encourage more online shopping, April 2018
                • What it means
                • The Market – What You Need to Know

                  • Online grocery picking up steam
                    • Long runway for food and drink online sales to grow
                      • US population changes impact online sales
                        • More purchasing on smartphones
                        • Market Size

                          • Small market, big opportunity
                            • Figure 7: Total US online sales of groceries*, at current prices, 2013-18
                        • Market Breakdown

                          • Opportunity lies with food and beverages
                            • Figure 8: Total online sales of groceries, by segment, at current prices, 2013-18
                            • Figure 9: Total US retail sales of Online Grocery Shopping, by segment, at current prices, 2016 and 2018
                        • Market Factors

                          • Broader eCommerce trends impact grocery sector
                            • Millennials take on more grocery shopping responsibility
                              • Households with children on the decline
                                • Figure 10: Shopping methods – Multi-channel shoppers, by parental status, April 2018
                              • America’s increasing diversity could impact online marketplace
                                • Figure 11: Shopping methods – Multi-channel shoppers, by race and Hispanic origin, April 2018
                              • Americans are trying to eat healthier
                              • Key Players – What You Need to Know

                                • Meal kit companies are growing quickly, but total sales remain low
                                  • Floodgates open as retailers go “all in” on fulfillment
                                    • Non-online shoppers avoid the channel out of routine, fear, and reluctance to pay more
                                      • Drivers not required to deliver orders; shoppers not required to be home to get them
                                        • Mastering the last mile
                                          • Voice-activated assistants gain ground
                                          • Company Sales of Online Grocery Retailers

                                            • Meal kit subscription services among fastest growing food/drug companies
                                              • Figure 12: Food/drug retailers in top 500, 2018
                                              • Figure 13: Fastest growing food/drug companies, 2018
                                          • What’s Trending?

                                            • Maniacal focus on delivery and store pickup services
                                              • In their words
                                              • What’s Struggling?

                                                • Consumers like shopping online, but still prefer shopping in-store
                                                  • Figure 14: Reasons for not shopping on grocery store websites, April 2018
                                                  • Figure 15: Reasons for not shopping for food and drink products online, April 2018
                                                • In their words
                                                  • Types of information expected
                                                    • Freshness concerns
                                                    • What’s Next?

                                                      • More innovative means of delivery
                                                        • Tackling the food quality barrier
                                                          • The third dimension: ordering by voice
                                                            • In their words: future of online grocery
                                                              • The next level of blended online and offline experience
                                                              • The Consumer – What You Need to Know

                                                                • Less than a quarter of consumers typically shop online
                                                                  • Time and money savings drive consumers online
                                                                    • Non-perishables and non-food and non-drink on top; perishables fall to the bottom
                                                                      • Not a straight shot to the checkout screen
                                                                        • Online shoppers prefer orders to be delivered over picking them up at the store
                                                                          • Trial incentives and freshness guarantees could move skeptics to action
                                                                          • Shopping Methods

                                                                            • Online shopping currently a small piece…
                                                                              • Figure 16: Shopping methods, April 2018
                                                                            • …but future looks brighter
                                                                              • Figure 17: Interest in future online shopping, April 2018
                                                                            • A closer look at multi-channel shoppers
                                                                              • Figure 18: Multi-channel shoppers, by generation, April 2018
                                                                              • Figure 19: Multi-channel shoppers, by parental status by gender, April 2018
                                                                              • Figure 20: Multi-channel shoppers, by area, April 2018
                                                                            • Saving time and money main reasons to opt online
                                                                              • Figure 21: Purchase drivers, by category, March 2018
                                                                            • In their words: consumers explain their shopping preferences
                                                                            • Categories Purchased Versus Not Purchased Online

                                                                              • Coffee/tea most likely to be purchased online; perishables fall to the bottom
                                                                                • Figure 22: Items purchased and not purchased online, February 2018
                                                                              • In their words
                                                                                • Non-food categories are an opportunity for more trial of online shopping
                                                                                  • Figure 23: Importance of online retailers’ non-food product selection, April 2018
                                                                              • Shopping Preferences

                                                                                • Nurturing the customer relationship from the start
                                                                                  • Figure 24: Preference regarding number of retailers shopped, by select demographics, April 2018
                                                                                • Physical stores still play a role
                                                                                  • Figure 25: Preference regarding physical stores, by select demographics, April 2018
                                                                                • Loyalty to savings
                                                                                  • Figure 26: Loyalty to price versus brands, by select demographics, April 2018
                                                                              • Shopping Process

                                                                                • Path to purchase is a journey, not a destination
                                                                                  • Figure 27: Shopping process, April 2018
                                                                                • Comparison shopping made easy via digital channels
                                                                                  • Figure 28: Comparison shopping behaviors, by select demographics, April 2018
                                                                                • In their words
                                                                                • In-store Pickup and Delivery Preferences

                                                                                  • Online shoppers prefer delivery over store pickup
                                                                                    • Figure 29: Delivery versus store pickup preferences, by age and area, April 2018
                                                                                  • Consumers’ thoughts on in-store pickup
                                                                                    • Consumers’ thoughts on delivery
                                                                                      • Figure 30: Delivery preferences, April 2018
                                                                                      • Figure 31: Delivery preferences, by select demographics, April 2018
                                                                                  • Influencers to Encourage More Online Shopping

                                                                                    • Re-evaluating pricing strategies could yield gains
                                                                                        • Figure 32: Influencers to encourage more online grocery shopping, April 2018
                                                                                      • Freshness guarantee is white space opportunity
                                                                                        • Figure 33: Influence of freshness guarantees on online shopping, by region, April 2018
                                                                                      • Discounts and freshness guarantees could reach over six in 10 shoppers
                                                                                        • Figure 34: TURF analysis – Influencers to encourage more online shopping, April 2018
                                                                                      • Online sampling could draw in more brand advocates
                                                                                      • Appendix – Data Sources and Abbreviations

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

                                                                                                          • Figure 35: Total US online sales of groceries*, at current prices, 2013-18
                                                                                                          • Figure 36: Total US online sales and forecast of groceries*, at inflation-adjusted prices, 2013-23
                                                                                                          • Figure 37: Total online sales of groceries, by segment, at current prices, 2013-18
                                                                                                          • Figure 38: Distribution of population, by age and race/Hispanic origin, 2018
                                                                                                          • Figure 39: Households, by presence of own children, 2007-17
                                                                                                          • Figure 40: Population by race and Hispanic origin, 2013-23
                                                                                                      • Appendix – Key Players

                                                                                                          • Figure 41: Amazon Go store, Seattle, May 2018
                                                                                                          • Figure 42: Walmart direct mail, in-store pickup, March 2018
                                                                                                      • Appendix – The Consumer

                                                                                                          • Figure 43: Interest in future online shopping, by shopping frequency, April 2018
                                                                                                          • Figure 44: Table – TURF analysis – Influencers to encourage more online shopping, April 2018
                                                                                                        • Additional qualitative research

                                                                                                        Online Grocery Shopping - US - August 2018

                                                                                                        US $4,395.00 (Excl.Tax)