Grocery apps are some of the fastest-growing in the U.S., according to eMarketer. In 2018, 18 million U.S. adults will use a grocery app at least once a month, up 49.6% over 2017. By 2019, the firm predicts more than one in five adult smartphone e-commerce buyers will use a grocery app to order food.
Grocery app growth is being fueled in part by the Amazon and Whole Foods merger, as well as Walmart’s expansion of grocery delivery to 100 cities by the end of 2018. In order to stay competitive with these retailers, regional grocers are stepping up their online strategies. For example, Kroger partnered with UK online grocer Ocado to build high-tech warehouses where grocery orders will be selected and packed by machines. Additionally, as retailers figure out how to be more efficient with fulfillment, costs for consumers will drop and another barrier to entry will fall, says eMarketer senior analyst Patricia Orsini.
Grocers are increasingly using click-and-collect delivery to address consumers’ concerns with delivery time when ordering fresh produce and other perishables online, as well as their desire to hand-select produce and meat, Orsini says. In addition, if the shopper is ordering from their regular grocery store, familiarity helps them trust that they will receive quality products.
But despite grocery apps’ rapid pace of growth, food and beverage online sales are expected to make up just 2.8%, or $15 billion, of all U.S. online sales in 2018. As the online grocery category grows, there will be even more options for consumers, and retailers will recognize they must enhance their online offerings in order to retain market share.
For the full story, go to this week’s Food Institute Report.
After a week's vacation, I returned to my desk Oct. 15 and read through the past week's editions of Today in Food to refresh myself on what I had missed. Immediately, I found a common thread in our Washington section: class action lawsuits focused on labeling.read more
Food retailers are likely to be pressured by low online penetration and a highly competitive market through 2023, according to research from Morgan Stanley. While the U.S. grocery industry generated $840 billion in sales in 2017, growing 4% annually, and is the largest retail category at 18.5% of sales, the grocery category has the lowest online penetration in the U.S., at 3%, compared to more than 10% for total retail sales.read more
Chris focuses on fresh, canned and frozen fruit and fresh and dried vegetables for the Food Institute Report. In addition, he assists in compiling data for various Food Institute publications throughout the year. He is a proud Rutgers University alumnus with a degree in English, and has a background in web writing for a variety of industries, including legal, foodservice and small-to-medium sized businesses. In his downtime you can find him watching New York Yankees baseball, hiking, enjoying live music and spending time with his dog Kaiden. He invites you to contact him via email at email@example.com to talk about anything food-related.
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