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Online grocery shopping expected to double its market share by 2025

Online grocery shopping expected to double its market share by 2025

According to a study released last month, online grocery will grow to 21.5% of total U.S. grocery sales by 2025, more than doubling its current share of the overall grocery market. The study, conducted by grocery e-commerce specialist Mercatus and research firm Incisiv Projects, polled nearly 60,000 U.S. consumers across 20 states.

For this year, online grocery’s share of the overall grocery market is expected to be 10.2%, or about $106 billion. Online grocery’s share in 2019 was 3.4%, or $34.54 billion.

Prior to Covid, online grocery sales were projected to be 4.3% of the overall grocery market in 2020, with a projected rise to 5.4% in 2021.

“This comprehensive survey proves that COVID-19 has fundamentally changed the way shoppers approach their grocery options, so much so that we now expect online sales to reach an unprecedented $250 billion by 2025,” said Sylvain Perrier, Mercatus President and CEO. “The growth of online grocery in 2020 and its predicted long-term impact, coupled with customers’ continued loyalty to brick-and-mortar, makes it clear that these avenues must complement each other in creating a great customer experience across a grocer’s entire brand.”

According to the study, 90% of e-grocery customers are expected to continue shopping online, and 93% of respondents said they will continue to shop with their preferred grocer (in-store and online).

In addition, 78% of all shoppers surveyed said they still prefer to visit a brick-and-mortar grocery store, either to shop in-store or pick up curbside orders, indicating that most grocery shoppers remain loyal to retailers and online brands with a physical store presence.