US Online Grocery Retailing Market Analysis
The US Online Grocery Market has experienced steady growth, with more than 50% of consumers engaging in online grocery shopping in 2025.
Historically, the market has benefited from increasing adoption of multi-channel shopping, with around 3-3.5% annual growth in the grocery retailing market in the foreseeable future. Online grocery retail market sales are projected to grow around 10%, comprising roughly 20% of total grocery sales during this period. This growth is largely driven by younger generations (Gen Z, Millennials, and Gen Alpha) who prioritize convenience, personalization, and tech-driven shopping experiences. However, challenges such as freshness concerns, high delivery costs, and price comparison needs persist. Moving forward, grocers will need to enhance personalization, provide cost-effective solutions, and improve delivery flexibility to maintain competitive advantage and meet evolving consumer demands.
US Online Grocery Retailing Market Trends
Consumer trends in the US Online Grocery Retailing Market prioritize convenience and personalization, with younger generations (Gen Z, Millennials) leading the charge. 56% of consumers now shop online for groceries, and this is expected to continue growing, particularly for time-saving features, such as personalized recommendations, recurring delivery slots, and easy access to shopping lists. Price sensitivity remains high, with consumers actively comparing prices and seeking budget-friendly options, such as store brands and discounts. Home delivery remains the preferred method for most, and curbside pickup continues to serve important roles, though curbside has declined from 2024. Additionally, younger consumers particularly seek value beyond cost, favoring fun and engaging experiences through interactive shopping options, loyalty rewards, and personalized promotions. Despite these conveniences, concerns over freshness and delivery costs remain significant barriers.
Purchasing The US Online Grocery Retailing Market Report 2025 shows younger consumers prefer tech-driven, personalized shopping, while older shoppers stick to traditional in-store methods. The report highlights strong demand for pricing transparency and persistent concerns about freshness, prompting retailers to adopt more flexible, customer-focused strategies to address economic uncertainty and evolving consumer expectations.
About The Report
The US Online Grocery Retailing Market Report 2025 provides valuable insights into current consumer behaviors, preferences, and market trends within the online grocery sector. The report covers key areas such as purchasing patterns, delivery preferences, pricing transparency, and the demand for personalized shopping experiences. It also examines the impact of economic factors such as tariff impacts, trade uncertainties, and their influence on grocery pricing. The research surveyed a wide range of demographics, including Online Grocery Retailing Market Size, age groups, income levels, and geographical locations, to provide a comprehensive view of the market. This report will benefit retailers, e-commerce platforms, marketers, and industry analysts seeking to understand consumer demands and adapt to shifting trends in the competitive Online Grocery Retailing Market.
Key Topics Analyzed in the Report
- Impact of tariffs on consumer behavior and online grocery shopping
- Online grocery shopping frequency
- Delivery and pickup preferences
- Retailers shopped and services used
- Reasons for grocery shopping online
- Barriers to grocery shopping online
- Promotions, features and services of interest in online grocery shopping
| Report Attributes | Details |
|---|---|
| Published Date | July 2025 |
| Data Range | 2019-2030 |
| Measurement Metrics | Revenue in US $ |
| Country Focus | United States of America (USA) |
| Consumer Data | 1,823 internet users aged 18+, April 2025 |
| Number of Pages | 72 |
| Market Segmentation | Fresh Meat, Poultry, Seafood, Dairy Products, Frozen Foods, Produce, Bakery Items, Deli Items, Beverages, Non-Perishable Food Products, Fresh Prepared Meals, Coffee, Alcoholic Beverages, and Alcohol Alternatives |
| Leading Companies | Walmart, Amazon, Target, Kroger, Warehouse Clubs, Dollar Stores, Local Neighborhood Supermarkets, Discount Grocers, Natural/Organic Supermarkets, and Ethnic Grocers |
Meet the Expert Behind the Analysis
This report was written by Katie Hansen. Katie joined Mintel in July 2019 and writes a variety of Reports within the retail and ecommerce space. She has experience in researching consumer behavior and enjoys observing the ever-evolving retail landscape, consumers’ changing behaviors and uncovering the “why” behind those behaviors.
Online grocery continues to play an important role in the grocery landscape as consumers seek convenient and personalized shopping experiences.
Katie Hansen
Senior Analyst – Retail & eCommerce
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EXECUTIVE SUMMARY
- What you need to know
- Market predictions
- What consumers want & why
- Opportunities
- Grocers need to go beyond the aisle to elevate the online grocery experience
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MARKET DYNAMICS
- Market context
- Impact of tariffs on online grocery and consumer behavior
- Economic uncertainty will shape how consumers shop for groceries online
- Consumers will shop around before resorting to behavior changes
- Graph 1: consumer behavior changes in response to grocery price increases, 2025
- Consumers facing financial difficulties are more likely to make significant changes
- Graph 2: consumer behavior changes in response to grocery price increases, by financial situation, 2025
- At the end of the day, consumers want to see a relief plan from grocers
- Additional market drivers
- Grocery ecommerce will continue to drive total grocery sales
- Growth of younger generations to drive grocery ecommerce
- Graph 3: projected percent of population by generation in 2030
- Tech advancements create new opps in online grocery
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CONSUMER INSIGHTS
- Consumer fast facts
- Consumer fast facts (cont.)
- Approach to grocery shopping
- Reduced shopping frequency indicates consumers are trying to stretch groceries and budgets
- Graph 4: grocery shopping frequency, 2023-25
- Grocers have opportunity to encourage weekly planning with younger consumers
- Graph 5: grocery shopping frequency, by key demographics, 2025
- Multi-channel shopping is the norm – now and in the future
- In-store shopping is still preferred while online gains traction
- Graph 6: channel shopped, 2025
- Younger, multicultural consumers and parents are driving online grocery/multi-channel shopping
- Graph 7: channel shopped, by key demographics, 2025
- Consumers maintain their online grocery shopping frequency
- Time-strapped consumers are driving online grocery growth
- Graph 8: anticipated shopping frequency, by generation and parental status, 2025
- Delivery and pickup preferences
- Curbside pickup remains an important part of the online grocery ecosystem despite declining usage
- Home delivery is the go-to for online grocery with pickup options playing an important role
- Millennials and Hispanic consumers are driving in-store pickup
- Graph 9: delivery and pick-up preference, by key demographics, 2025
- Grocers have ample opportunity to enhance the delivery process
- Graph 10: attitudes toward delivery, 2025
- Younger consumers are interested in more services from their grocery experience
- Retailers shopped and services used
- Walmart and Amazon remain favorites for online grocery
- Graph 11: retailers shopped online, 2025
- Target is a stronger contender when it comes to grocery ecommerce
- Graph 12: retailer shopped – any online shopping, 2025
- Prime and Plus lead the way with third-party services expanding their reach
- Graph 13: online grocery services used, 2025
- Younger consumers are taking advantage of a variety of services
- Graph 14: online grocery services used, by generation, 2025
- Instacart acquires Wynshop to expand tech offering
- Shopping by category
- Online shopping continues to climb for each category
- Grocers need to address concerns around freshness
- Graph 15: shopping method by category, 2025
- Beverages are a gateway to shopping for groceries online
- Graph 16: shopping method net by category nets, 2025
- Graph 17: shopping method by category nets, 2025
- Younger consumers are more comfortable shopping online for fresh items
- Graph 18: any online shopping net by category, by generation, 2025
- Reasons for grocery shopping online
- Consumers are willing to pay for services that free up their time
- Shopping online for groceries makes it simpler for consumers to discover deals
- Graph 19: reasons for grocery shopping online, 2025
- Rural consumers rely on online grocery for practicality and access
- Graph 20: reasons for grocery shopping online, by area, 2025
- Grocers can infuse fun into the shopping process, especially appealing to younger consumers
- Graph 21: reasons for grocery shopping online, by generation, 2025
- Instacart launches party cart ordering with Fizz
- In-store wins fresh foods but opportunity for online purchases is growing
- Graph 22: trip type by channel, 2025
- Gopuff leans into bulk ordering online
- Barriers to grocery shopping online
- Freshness remains the prime barrier, shipping costs are less of a hindrance
- Graph 23: barriers to online grocery shopping, 2025
- Younger generations prioritize instant access to what they want, exactly when they want it
- Graph 24: barriers to grocery shopping online, by generation, 2025
- Suburban and rural consumers find it easier to run into the store to get what they need
- Graph 25: barriers to grocery shopping online, by area, 2025
- Offering approval and choice prior to delivery can address barriers to online grocery
- Graph 26: attitudes – solutions to online grocery shopping barriers, 2025
- Instacart introduces quality score for workers
- Online grocery shopping behaviors
- Consumers prioritize price comparison followed by nutrition transparency
- Graph 27: online grocery shopping behaviors, 2025
- Impulse shopping can be a tricky endeavor online
- Younger consumers want more engagement when shopping online for groceries
- Graph 28: online grocery shopping behaviors, by generation, 2025
- Black consumers want tools for price comparison
- Graph 29: online grocery shopping behaviors, by race or ethnicity, 2025
- New grocery app helps consumers compare prices across grocers
- Promotions of interest
- Free delivery dips in the list of promotional favorites
- Graph 30: promotions of interest for online grocery shopping, 2025
- Promotions with more emotional value will win with younger consumers
- Graph 31: promotions of interest for online grocery shopping, by generation, 2025
- Every dollar counts for consumers squeaking by
- Graph 32: promotions of interest for online grocery shopping, by financial situation, 2025
- Loyalty programs and promotions on social are strong opportunities to reach consumers
- Graph 33: attitudes toward promotions, 2025
- Instacart embraces ’90s nostalgia with throwback ads and prices
- Features and services of interest
- Consumers are interested in practical online features
- Graph 34: online features of interest, 2025
- Younger generations drive interest in a wider range of online features
- Graph 35: online features of interest, by generation, 2025
- Stater Bros. Market and Swish innovate the sampling game
- Services can extend beyond the grocery aisles
- Walmart expands meal solutions online
- Consumers are starting to see value in AI for product discovery
- Graph 36: online shopping tech and services of interest, 2025
- Younger generations and multicultural consumers will drive AI evolution
- Graph 37: online shopping tech and services of interest, by generation, 2025
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GROCER STRATEGIES
- Instacart invests in AI-powered personalization with Smart Shop
- Walmart expands drone delivery in partnership with Wing
- Target expands online grocery offering with ButcherBox partnership
- Schnucks tests late night delivery past 10pm
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APPENDIX
- Market definition
- Consumer research questions
- Consumer research questions (cont.)
- Consumer research methodology
- Generations
- Abbreviations and terms
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