07 Feb 10 Stats that Prove Consumers are Hungry for Online Groceries
In 1996, a group of investors founded Webvan, the first online grocery retailer. At the time, the investors believed that consumers would jump at the opportunity to fill their refrigerators in the comfort of their own homes. Unfortunately, the concept was introduced before consumers were truly ready to buy their groceries online.
Over two decades later, the online grocery market is coming of age. By 2024, experts predict it to reach $100 billion with 70% of consumers purchasing some groceries through the internet. While online grocery services have been around for a number of years, Amazon’s acquisition of Whole Foods has awoken a sleeping giant, accelerating the growth of the market exponentially. We’ve compiled the most compelling statistics to demonstrate the impact this change in consumer behavior is having on the grocery retail market.
1) Around 25% of U.S. households were likely to buy some groceries online in 2017, up from 19% in 2014. [Source]
2) In total, U.S. online grocery sales amounted to $14.2 billion in 2017. [Source]
3) 2017 online sales were the equivalent of 764 grocery stores, based on store volume; by 2025, the digital share could become comparable to nearly 3,900 stores. [Source]
4) Amazon generated $2 billion in food and beverage sales in 2017. That is an 18% market share of U.S. online grocery sales, double the share held by Walmart. [Source]
American Households that Currently Buy Some Groceries Online
5) U.S. Amazon sales of cold beverages and coffee—driven by bottled water, sports/energy drinks and disposable coffee pods—earned more than double the next leading categories, with cold beverages growing 65% year over year. The remaining top categories: snack food, breakfast foods, and candy & gum, demonstrate that non-perishables continue to dominate Amazon’s grocery sales. [Source]
6) 68% of consumers that shopped online last year said they are likely to switch grocers for a better online shopping experience (quick, easy, convenient, enjoyable). [Source]
7) Shoppers across every age range are similarly likely to shop for groceries online next year. [Source]
8) Experts predict that in just 5-7 years, as many as 70% of U.S. consumers will regularly purchase consumer packaged goods online. [Source]
9) Consumers could be spending $100 billion a year on online grocery by 2024. That is the equivalent to every U.S. household spending $850 online for food and beverage annually. [Source]
10) Online grocery spending could grow during the 2016-2025 forecast period from 4.3% of the total U.S. food and beverage sales to as much as a 20 percent share. [Source]