Digital Grocery Will Be a $243 Billion Market In The US By 2025: Here Are The Stats and Trends
Insider Intelligence | April 15,2022
With digital grocery buyers accounting for more than half of the US population, signaling a landmark year in 2021, retailers are rushing to respond: Amazon Fresh will open dozens of new brick-and-mortar stores across the country over the next few years. Ultrafast grocery startups, promising drop-offs in as short as 15 minutes, are pushing past substantial losses in an already competitive marketplace and exploring new revenue streams. And major players such as Uber Eats and Gopuff are expanding their service grounds for grocery delivery.
Whether through click and collect or delivery, digital grocery—orders made via any online channel, from desktop and mobile to apps and voice assistants—is on track for sales to see double-digit growth in the years to come. Between 2021 and 2025, US sales are expected to nearly double with more than $121 billion coming into the market.
Digital grocery is growing faster than in-store grocery, making it a larger percentage of overall grocery sales overtime. This year, digital will make up 11.2% of the $1.32 trillion in US grocery sales—a share that lags behind digitally mature retail categories, but is larger with respect to absolute dollar figures due to the sheer size of the market. And, with its currently low user penetration, there’s still significant room for growth.
The majority of the online grocery buyer population are millennials, who reportedly place high value on same-day delivery more than other generations and are far more receptive to emerging in-home delivery options and new retail-tech features. This age cohort is also likely to live in urban communities where an array of delivery services are vying for their attention with introductory offers.