Digital grocery will be a $243 billion market in the US by 2025
US digital grocery sales will grow another 20.5% this year, reaching $147.51 billion.
Walmart Inc. is the No. 1 retailer in digital grocery and will remain on top, followed by Amazon and Kroger.
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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.
Although convenience amid surges of omicron, and remote work as a result, remains a key driver in digital grocery adoption, certain economic conditions may still hinder its share of the market. If inflation and supply-chain shortages continue to drive up the price of grocery products, consumers may be less inclined to pay for certain digital grocery services that add delivery charges and other fees. Additional costs passed onto the consumer could become more common, as the ongoing labor shortage has put delivery drivers and other fulfillment service workers in short supply.
US digital grocery industry size & stats
