Online grocery sales to reach new heights

Online grocery sales to reach new heights

Online grocery sales are predicted to capture 20% of total grocery retail by 2025 to reach 100 billion USD in consumer sales, according to study by the Food Marketing Institute conducted by Nielsen. While estimates of online grocery’s share of the total 641billion USD, the U.S. grocery market vary, from 2% to 4.3% according FMI-Nielsen, it is the next major retail sector to be disrupted by ecommerce.

Not unexpectedly, Amazon is leading the charge. Today, Amazon’s share of the online grocery market stands at 18%, according to a new study One Click Retail, which compiles data for the world’s ecommerce marketplaces. With an estimated 2 billion USD in food and beverage sales, Amazon stands head and shoulders above its closest competitor, Walmart, with roughly half of Amazon’s market share.

While consumers have been slower to adopt online shopping in grocery due to entrenched shopping habits for this most frequently purchased category and preference to personally examine and pick fresh meat and produce, online purveyors have helped consumers learn to like online grocery shopping and delivery by leading with packaged foods.

With Amazon’s early lead in online grocery and its momentum growing thanks to the Whole Foods acquisition, Prime Pantry, Prime Fresh and its already loyal legions of Prime customers, Amazon is already way out in front in the online grocery battle.