Skip to content
  • Wednesday, May 31, 2023
workout stores

workout stores

Beyond business

  • Home
  • Property
  • Insurance
  • Market
  • Fintech
  • E-commerce
  • Retail
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
  • Home
  • E-commerce to account for 20% of U.S. grocery market by 2026
e-commerce

E-commerce to account for 20% of U.S. grocery market by 2026

October 25, 2021
Zarah Ashari

Online grocery sales will surpass 20% of the overall U.S. grocery retail market in the next five years, at least several years before pre-pandemic projections, a new Mercatus/Incisiv study predicts.

Grocery e-commerce sales are forecast to account for 9.5% of total U.S. grocery sales of $1.097 trillion this year, up from 8.1% of $1.137 trillion in 2020, according to online grocery specialist Mercatus’ “eGrocery Transformed: 2021 Market Projections and Insight” report, conducted by research firm Incisiv and released this week. From there, online’s share is projected to expand to 11.1% of $1.124 trillion in grocery sales in 2022 and to 20.5% of $1.285 trillion in 2026.

Related: Pickup/delivery gain online grocery sales share in September

That’s well ahead of estimated growth for the online grocery market before the COVID-19 crisis. Pre-COVID, e-grocery sales were expected to reach 5.4% of the total market in 2021, up from 4.3% in 2020, and then climb to 6.8% in 2022 and to 14.5% in 2026, the study said. Current growth projections include a marginal reduction over 2020’s estimate, as U.S. consumers adjust to returning to brick-and-mortar grocery stores.

Mercatus Incisiv-eGrocery Transforms study-outlook.png

Related: As digital sales soar, profits are a concern for grocery retailers

“While shoppers indicated their eagerness to head back to stores, ingrained behavior and added convenience of online grocery will ensure omnichannel sales continue to grow at a stable pace, reaching 20% of the total grocery sales by 2026,” Mercatus said in the report.

Pandemic-related health and safety concerns remains a key driver of online grocery shopping. Of nearly 42,000 grocery customers in 20 states polled for the study, 43% shopped online in 2020, up 80% from 24% in 2018. Still, even with relaxed restrictions and store reopenings, online grocery adoption rose 14% to 49% of respondents in 2021. 

Seventy-two percent of those surveyed cited convenience and 45% pointed to time savings as chief reasons for buying groceries online. Yet 28% said lingering health concerns about COVID have them using online grocery services, and 30% report their e-grocery use was pandemic-induced but are sticking with the service because it’s convenient.

Indeed, 46% of grocery shoppers polled said they bought more categories online in 2021, compared with 34% indicating they did so in 2020. That has come despite declines in online average order value (AOV) and trips from last year’s burst in consumer stockpiling during the early months of the pandemic. Online AOVs fell 14% from $106 in 2020 to $92 this year, largely from reduced bulk-buying in the first half of 2020, the Mercatus/Incisiv report said. Meanwhile, monthly online shopping trips dropped 12% from 2.6 to 2.3 as more grocery customers returned to in-store shopping this year.

Mercatus/IncisivMercatus Incisiv-eGrocery Transforms study-delivery decline.png

Clearly, U.S. online grocery customers have gravitated toward click-and-collect over home delivery as their preferred fulfillment method, the study noted. Seventy-six percent of respondents said they favor in-store (44%) and curbside (31%) pickup, compared with 24% preferring delivery. 

The number of online grocery customers who used curbside pickup at least once in the past year rose to 61% for 2021, up from 57% a year earlier, while home delivery adoption remained flat, according to the “eGrocery Transformed” report. At the same time, 46% of online grocery customers used delivery at least once in the last 12 months, the same as in 2020. 

COVID-19 changed e-grocery fulfillment preferences, the study showed. Pre-pandemic, 27% of online grocery consumers preferred home delivery, compared with 33% favoring curbside pickup and 40% embracing in-store pickup. During the height of the pandemic, 31% opted for delivery versus 41% for curbside and 28% for in-store pickup. Now, 24% express a preference for home delivery, whereas 31% prefer curbside service and 44% like in-store pickup. 

“Home delivery is expected to shrink to lower than pre-pandemic levels as customers shift their preference to pickup,” Mercatus stated in the report. “Three-quarters of all online orders are expected to be fulfilled via stores, either in-store pickup or curbside pickup. Among suburban households, delivery adoption is 80% lower as compared to urban shoppers.”

Mercatus/IncisivMercatus Incisiv-eGrocery Transforms study-delivery cost.png

When asked about their online grocery fulfillment preferences, respondents cited higher fees and surcharges as the top reason for favoring pickup. Fifty-seven percent of online customers described expedited delivery (same-day) as important, but just 15% indicated they’re willing to pay a separate fee for it. 

     

“Pickup works particularly well for both grocers and their customers in the North American market,” explained Sylvain Perrier, president and CEO at Toronto-based Mercatus. “Pickup services offer grocers more control over the cost to serve online customers than third-party delivery. Online customers love the precision, flexibility and overall convenience that store pickup provides. And when done well, pickup services make for a better overall shopping experience that builds lasting connections with customers, which will lead to repeat business for grocers.” 

Other than their preferred supermarket, 56% of those surveyed named mass merchants like Walmart and Target as top options for online grocery shopping, compared with 33% citing online-only retailers like Amazon and 11% favoring delivery marketplaces like Instacart, the study said. Still, 34% cited Instacart as the delivery provider for their last grocery order, while 24% named their preferred supermarket’s delivery service, 22% cited Amazon/Amazon Fresh and 6% named Shipt.

“While consumers do not like the added cost and lack of control associated with third-party marketplaces, grocery retailers continue to drive customers into the hands of delivery providers,” the Mercatus/Incisiv report said.

Going forward, mobile will become a bigger e-grocery conduit, as consumers are expected to increase their mobile channel usage in the next year by 14%, the study revealed. Online grocery customers indicated they aim to shop via mobile devices (through apps and the web) at three times the rate as desktop over the next two years. Mercatus/Incisiv’s findings showed that, on mobile apps, customers view 4.2 times more products, spend six times more time and generate a three times higher conversion rate versus desktop interactions online.

https://www.supermarketnews.com/online-retail/e-commerce-account-20-us-grocery-market-2026

Tags: account, ecommerce, grocery, Market

Post navigation

Excavation Begins for Madison House’s Retail Podium at 126 Madison Avenue in NoMad, Manhattan
Analysis: China’s silence on yuan’s swift gains keeps markets buzzing

Recent Posts

  • How to Properly Provide My Residence With no an Agent?
  • Real Estate, Payroll And Fintech Companies Lead – Crunchbase News
  • Learning The Strengths And Shortcomings Of Purchasing Foodstuff And Other Things Online
  • Solutions to the Most Routinely Requested Questions About Title Insurance policies Service fees and Coverage
  • Creativeness & Entrepreneurship: The Imaginative Evolution of an Intellectual House(c)

Recent Comments

No comments to show.

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Categories

  • Advertise
  • Automotive
  • Business
  • Crypto
  • Design & Development
  • e-commerce
  • Education
  • fashion
  • Fintech
  • Food
  • health
  • Home Improvement
  • Insurance
  • Law
  • market
  • Pet and Animals
  • Property
  • retail
  • SEO
  • social media
  • Technology
Inner Beauty

backlinks.com

You may Missed

Property

How to Properly Provide My Residence With no an Agent?

May 31, 2023
Glad Digital
Fintech

Real Estate, Payroll And Fintech Companies Lead – Crunchbase News

May 31, 2023
Zarah Ashari
market

Learning The Strengths And Shortcomings Of Purchasing Foodstuff And Other Things Online

May 30, 2023
Glad Digital
Insurance

Solutions to the Most Routinely Requested Questions About Title Insurance policies Service fees and Coverage

May 30, 2023
Glad Digital
Copyright © 2023 workout stores
Theme by: Theme Horse
Proudly Powered by: WordPress
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT

WhatsApp us