2022
9
US Online Grocery Retailing Market Report 2022
2022-05-10T04:05:11+01:00
OX1101715
3695
151110
[{"name":"Online Grocery","url":"https:\/\/store.mintel.com\/industries\/retail\/online-grocery"}]
Report
en_GB
“Rapid adoption of grocery ecommerce amid the pandemic required retailers to move quickly in an evolving digital landscape. Consumers are continuing to adapt to life amid COVID-19, as convenience and…

US Online Grocery Retailing Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

“Rapid adoption of grocery ecommerce amid the pandemic required retailers to move quickly in an evolving digital landscape. Consumers are continuing to adapt to life amid COVID-19, as convenience and value overtake pandemic concerns as drivers for online shopping. In the years ahead, ecommerce will grow to comprise a higher share of the total market, and retailers have an opportunity to re-invent online platforms to deliver personalized and enjoyable digital shopping experiences.”
– Brittany Steiger, Senior Analyst – Retail & eCommerce

This Report looks at the following areas:

  • The impact of COVID-19, inflation, supply chain constraints and other market factors on consumer behavior and the online grocery market
  • Where consumers shop and what they look for in their primary online grocer
  • Motivators and barriers to shopping online for groceries
  • Consumers’ online grocery shopping behaviors and preferences
  • The evolution of omnichannel shopping

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Total US sales and fan chart forecast of online groceries*, at current prices, 2016-26
                  • Figure 2: Category outlook, 2022-27
                • Opportunities and challenges
                  • Reinvent store pickup to take advantage of the BOPIS boom
                    • Enhancing the shopper journey with personalization
                      • Focus on fresh
                        • Invest in technology that supports last-mile fulfillment
                          • Impact of inflation and supply shortages on online grocery
                            • Key consumer insights
                              • eCommerce remains elevated, but the store is still the preferred grocery channel
                                • Consumers who try ecommerce are satisfied and sticking with it
                                  • Consumers shop online to save time – replacing pandemic factors as the top driver
                                    • Lack of consumer confidence in fresh foods and substitutions a major barrier
                                      • Online shoppers like shopping list features, to the detriment of impulse shopping
                                      • Market Size and Forecast

                                        • Upward trajectory of ecommerce expected to reach 20% of total market within five years
                                          • Figure 3: Total US sales and fan chart forecast of online groceries*, at current prices, 2016-26
                                          • Figure 4: Total US sales and forecast of groceries*, at current prices, 2016-26
                                      • Segment Performance

                                        • Health and beauty still comprise the majority share of ecommerce, but food and beverages continue to grow
                                          • Figure 5: total us online sales of groceries*, by segment, at current prices, 2016-21
                                          • Figure 6: Total US online sales of groceries*, by segment, at current prices, 2019 and 2021
                                      • Market Factors

                                        • Shifts in the pandemic have an impact on consumer behavior
                                          • Inflation and rising costs will shift the online grocery landscape
                                            • Figure 7: 12-month percentage change, Consumer Price Index – All items versus food at home items, 2021- 22
                                            • Figure 8: US gasoline and diesel retail prices, 2001-22
                                          • Technological innovation carves out new possibilities for online grocers
                                            • Government leaders crack down on rapid delivery and dark stores
                                              • Impact of climate change on grocery ecommerce
                                                • Figure 9: Town & Country Markets all-electric delivery fleet, 2022
                                            • Competitive Strategies and Market Opportunities

                                              • Competitive strategies
                                                • Kroger leverages Ocado partnership to revolutionize digital expansion strategies
                                                  • Figure 10: Kroger + Ocado announce plans for US expansion, 2022
                                                • Grocers lean into BOPIS solutions to keep convenience coming
                                                  • Figure 11: Opie Drive-Thru Grocery; Fresh Street pickup-only grocery, 2021 and 2022
                                                • Instacart pivots to expand service offerings for retailers
                                                  • Figure 12: Instacart unveils platform suite for grocers, 2022
                                                • Walmart exerts its dominance in the online grocery channel
                                                  • Figure 13: Walmart promotes delivery services to consumers and third-party partners, 2021 and 2022
                                                • H-E-B and Albertsons leverage livestream shopping
                                                  • Figure 14: H-E-B virtual cooking classes, seasonal soups, 2022
                                                • Market Opportunities
                                                  • Enable smarter substitutions and personalized shopping through AI and machine learning capabilities
                                                    • BOPIS is a buoy to online grocery channel
                                                      • Strengthen service offerings through online personal shoppers
                                                        • Acquire third-party rapid delivery firms to emphasize speed
                                                          • Expand center aisle and general merchandise appeal via ecommerce channels
                                                            • Figure 15: Giant Foods + Ship2 Me partnership, 2022
                                                        • The Online Grocery Consumer: Fast Facts

                                                          • Grocery Shopping Overview

                                                            • Who shops for groceries
                                                              • Nearly all adults shop for groceries; many share the responsibility
                                                                • Figure 16: Grocery shopping responsibility, by gender and age, 2022
                                                              • How often they shop
                                                                • Shopping frequency is increasing as consumers shop in new ways and across multiple channels
                                                                  • Figure 17: Shopping frequency, by generation, 2022
                                                                  • Figure 18: Shopping frequency by consumer shopping method, 2022
                                                                • Parents are frequent grocery shoppers
                                                                  • Shopping method
                                                                    • Online and multichannel shopping remains elevated, but in-store sees a rebound
                                                                      • Figure 19: Shopping methods, 2022
                                                                      • Figure 20: Select Shopping Methods, year over year, 2022
                                                                    • Millennials are driving multichannel shopping; older consumers stick to in-store
                                                                      • Figure 21: Shopping Method, by generation, 2022
                                                                    • Consumers shop online for larger stock-up trips
                                                                      • Figure 22: Preferred shopping method by trip type, 2022
                                                                      • Figure 23: Preferred shopping method by trip type, by generation, 2022
                                                                  • Continued Impact of Covid-19 on Online Grocery Shopping

                                                                    • Online shopping remains elevated as pandemic behaviors persist
                                                                      • Figure 24: Impact of COVID-19 on grocery shopping, 2022
                                                                    • Who’s shopping more online
                                                                      • Figure 25: Selected Impact of COVID-19 on grocery shopping, by gender, age and parental status, 2022
                                                                      • Figure 26: Target adds Starbucks pickup to its “Drive Up” service, 2022
                                                                  • Interest in Future Online Grocery Shopping

                                                                    • Interest in online shopping continues to grow, but some holdouts remain
                                                                      • Figure 27: Interest in future online shopping among in-store shoppers, 2022
                                                                      • Figure 28: Interest in future online shopping among in-store shoppers – NETS, 2022
                                                                      • Figure 29: Anticipated amount of online shopping among online shoppers, 2022
                                                                      • Figure 30: Anticipated amount of online shopping among online shoppers, by generation, 2022
                                                                  • Shopping by Category

                                                                    • Consumers still shop in-store for most categories, but online shopping habits hold
                                                                      • Figure 31: Shopping for major categories – Online versus in-store, 2022
                                                                    • Non-perishables and beverage most often shopped online; Millennials overindex in all categories
                                                                      • Figure 32: Shopping for major categories – Any online, by generation, 2022
                                                                  • Retailers Shopped Online

                                                                    • Walmart and Amazon go head to head, but Walmart retains its lead
                                                                      • Figure 33: Retailers shopped online, 2022
                                                                      • Figure 34: Giant Foods eliminates pickup fees, 2022
                                                                    • Younger consumers drive mass merchant online grocery dominance; Baby Boomers loyal to supermarkets
                                                                      • Figure 35: Retailers shopped online, by generation, 2022
                                                                  • Usage of Online Shopping Apps and Memberships

                                                                    • Paid memberships dominate; Instacart falls below direct from retailer
                                                                      • Figure 36: Apps and Memberships used for online grocery shopping, by generation, 2022
                                                                      • Figure 37: Kroger highlights fuel points; Walmart+ offers Spotify Premium benefit, 2022
                                                                  • Reasons for Shopping Online

                                                                    • Convenience, especially time saved, drives consumers to shop online
                                                                      • Figure 38: Reasons for online grocery shopping, 2022
                                                                      • Figure 39: Walmart adds “Shop By Diet” feature, 2022
                                                                    • Value to rise in importance amid escalating prices
                                                                      • Figure 40: Select reasons for shopping online – Value, by generation, 2022
                                                                      • Figure 41: Afterpay polls users on Twitter about BNPL for groceries
                                                                    • Younger consumers seek enjoyment when shopping online
                                                                      • Figure 42: Select reasons for shopping online, by generation, 2022
                                                                      • Figure 43: Albertsons + Pinterest shoppable recipes, 2021
                                                                    • In their own words: consumers describe their online shopping preferences
                                                                    • Reasons for not Shopping Online More

                                                                      • Strong preferences for in-store shopping a hold; lack of trust is a factor
                                                                        • Figure 44: Shipt ad campaign highlights personal shoppers, 2021
                                                                        • Figure 45: Reasons for not shopping online more, by generation, 2022
                                                                      • Asian consumers more hesitant than others to shop online
                                                                        • Figure 46: Select reasons for not shopping online more, by race and Hispanic origin, 2022
                                                                        • Figure 47: Umamicart, Asian-focused online grocer, 2021
                                                                        • Figure 48: Weee!, Asian and Hispanic-focused online grocer, 2022
                                                                    • Online Shopping Behaviors

                                                                      • Online shopping supports list-making and price comparison
                                                                        • Figure 49: Online shopping behaviors, 2022
                                                                      • Baby Boomers take a prescriptive approach, younger consumers more likely to shop around
                                                                        • Figure 50: Select online shopping behaviors, by generation, 2022
                                                                        • Figure 51: Instacart adds features to increase value for shoppers, 2021
                                                                      • Consumers look for transparency on product labels
                                                                        • Figure 52: Select online shopping behaviors, product labels, 2022
                                                                        • Figure 53: Research on nutrition labeling in grocery ecommerce; Kroger “Food as Medicine” recognition, 2022
                                                                      • Impulse and add-on purchases a challenge in grocery ecommerce
                                                                        • Figure 54: Select online shopping behaviors, impulse and add-on purchases, 2022
                                                                      • Behaviors of frequent online grocery shoppers
                                                                        • Figure 55: Behaviors of frequent online grocery shoppers, 2022
                                                                    • Attitudes toward Online Grocery Shopping

                                                                      • Convenience is the hook, but opportunities to innovate abound
                                                                        • Figure 56: Attitudes toward convenience, by generation, 2022
                                                                        • Figure 57: Google Cloud launches Retail Search, 2022
                                                                      • Fresh foods present a challenge and an opportunity for ecommerce
                                                                        • Figure 58: Attitudes toward freshness, by generation, 2022
                                                                      • Consumers expect a range of delivery options
                                                                        • Figure 59: Attitudes toward delivery, by generation, 2022
                                                                        • Figure 60: Domino’s pizza rewards customers for picking up orders, 2022
                                                                      • Rapid delivery serves up speed and convenience for those willing to pay for it
                                                                        • Figure 61: Kroger, Publix partner with Instacart on rapid delivery, 2021
                                                                        • Figure 62: Attitudes toward fast delivery, by gender and age, 2022
                                                                      • Online experiential concepts add enjoyment and encourage impulse purchases
                                                                        • Figure 63: Attitudes toward impulse and enjoyment, 2022
                                                                        • Figure 64: Thailand’s Central Retail plans supermarket in the metaverse, 2022
                                                                      • Consumers are interested in ordering fresh, hot prepared meals online
                                                                        • Figure 65: Attitudes toward prepared food delivery, by generation, 2022
                                                                        • Figure 66: Attitudes toward prepared food delivery, by race and Hispanic origin, 2022
                                                                      • Parents are a key target market for online grocery shopping
                                                                        • Figure 67: Attitudes toward online grocery shopping, by parental status, 2022
                                                                    • Appendix – Data Sources and Abbreviations

                                                                      • Data sources
                                                                        • Sales data
                                                                          • Forecast
                                                                            • Consumer survey data
                                                                              • Consumer qualitative research
                                                                                • Abbreviations and terms
                                                                                  • Abbreviations
                                                                                  • Appendix – The Market

                                                                                      • Figure 68: Total US online sales and forecast of groceries*, at inflation-adjusted prices, 2016-26
                                                                                      • Figure 69: Total US online sales of food and beverages*, at inflation-adjusted prices, 2016-21
                                                                                      • Figure 70: Total US online sales of health and beauty products, at inflation-adjusted prices, 2016-21
                                                                                  • Appendix – The Consumer

                                                                                      • Figure 71: Interest in Future online shopping among in-store shoppers, by generation, 2022
                                                                                      • Figure 72: Reasons for online grocery shopping, by generation, 2022

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