How Big is the Online Grocery Market? 

According to reports, the online grocery market is set to surpass $100 billion in sales by 2021. Here are some interesting stats on the growth of the online grocery market and the challenges it faces. For starters, it’s not just about convenience – people are spending more for pick-up services than for delivery.

(Looking for a social media marketing online course, contact us to know more!)

Sales will surpass $100 billion in 2021 

It’s no surprise that the number of people buying groceries online is growing. More consumers are embracing the convenience and immediacy of online grocery shopping. This trend is expected to continue for several more years as consumers become accustomed to it. A recent study by Mercator, a leading global research company, revealed that by 2021, online grocery sales will be more than $100 billion. 

Currently, the U.S. market for online grocery sales is valued at more than $8.9 billion, including pick-up/delivery services and ship-to-home purchases. That figure will increase by more than a third in the next three years. eMarketer estimates that over 69 million households will shop for groceries online this year. 

Several studies have forecasted the future growth of online grocery shopping. According to eMarketer, online grocery sales will reach nearly $100 billion in the United States by 2021. Another survey has suggested that online grocery sales will reach $250 billion in 2025, representing 21.5% of all grocery sales in the United States by then. 

Growth of the online grocery market 

Online grocery shopping is a convenient and growing trend. This trend is being driven by rising disposable income and an increasing inclination toward comfort. It provides a convenient and efficient way of ordering groceries, saves time, and provides a wider variety of products. In addition, the growing e-commerce industry and the increasing millennial population are also driving the market. The future growth of this industry will be further boosted by voice technology and smartphones. 

Growing urbanization and the increased number of tech-savvy consumers have led to a shift in consumer behavior toward online grocery shopping. As a result, online grocery stores are embracing enticing marketing strategies to attract shoppers. These strategies include offering discounts, cashback, and flexible delivery options. By 2020, it is expected that the market for online grocery will grow three times faster than its current size. 

Challenges of online grocery 

The online grocery market has changed the grocery business, but it is still facing several challenges. For starters, it is more difficult to manage inventory. Perishable items are hard to store and deliver. Also, a retailer needs to coordinate with a third party for delivery services, which can be challenging if the store doesn’t have a local presence. Also, e-commerce stores must deal with issues like wrong products being delivered or returned. These issues can be avoided by employing a JIT inventory management system, which helps automate inventory management and reduces the cost of storage and wastage. 

The online grocery market is highly competitive and deals with many different brands and items. This means that startups must compete against well-established grocery companies, which often offer discounts and other enticements to win over new customers. However, with the right kind of software, retailers can meet high customer expectations. In addition, good grocery software can help them track what items are selling well and which are slow selling.