Are You Prepared? Online Grocery to Hit a 20% Market Share

Posted on June 14, 2018 by Caitlin Orosz under Industry News

In the past 10 years, foodservice and retail have seen significant digital disruption, and the pace of change is set to accelerate.

The ballooning digital component will force changes to the way food is sold and transported. Transparency will become crucial as consumers demand an end-to-end look at where their food comes from, and CPG marketers will need to optimize packaging to appeal to younger buyers who prefer mobile ordering. The B2C parcel industry will be worth nearly $50 billion by 2019.

Today, food shoppers are digitally engaged.

Digitally Disrupted: Online Buying Behavior

– Online grocery saw a 4.3% market share in 2017.

– According to Digital Commerce 360, 36% of consumers surveyed plan to grocery shop online this year. And, more than half of online grocery shoppers are likely to try buying from Amazon.

– In as few as 5-7 years, 70% of consumers will be grocery shopping online.

– The estimated $100 billion spend is equivalent to every US household spending $850 online for food and beverages annually, and will occur by 2024.

“The grocery industry is currently in the age of digital experimentation, where the roadmap on how to navigate and achieve real and profitable growth continues to evolve,” says Chris Morley, US President FMCG & Retail, Nielsen.

This post was originally featured in Smoke Jumpers magazine’s March 2018 issue.

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