The United States online grocery market is expected to grow from US$ 183.26 Billion in 2024 to reach US$ 715.54 Billion by 2033. The compound annual growth rate for the United States online grocery market is 16.34% between 2025 and 2033. A growing demand by consumers for easy convenience, technical advancements, and digital payments are the forces driving this increase.
Online grocery services let consumers browse and select items conveniently from their home, with an option for home delivery or curbside pickup. This method proves to be versatile and accessible for busy people, seniors, and people with a disability. Some platforms also come with features that include personalized recommendations, subscription services, and discount offers, further enhancing the experience of shopping online. TECHNOLOGICAL ADVANCEMENTS Online grocery shopping in the United States has been helped by technology. The improvement of inventory control, real-time order tracking, and shopping assistants powered by AI have driven online grocery shopping. More features, including better merchandise and product offerings through online grocery platforms are constantly added to suit the needs of various customers.
United States Online Grocery Market Outlooks
Online grocery is the process of buying food, drinks, and household groceries over internet-based platforms or mobile apps rather than physically in a store. In America, this phenomenon has also gained immense popularity due to its convenience, saving of time, and wider availability of products.Online grocery services let consumers browse and select items conveniently from their home, with an option for home delivery or curbside pickup. This method proves to be versatile and accessible for busy people, seniors, and people with a disability. Some platforms also come with features that include personalized recommendations, subscription services, and discount offers, further enhancing the experience of shopping online. TECHNOLOGICAL ADVANCEMENTS Online grocery shopping in the United States has been helped by technology. The improvement of inventory control, real-time order tracking, and shopping assistants powered by AI have driven online grocery shopping. More features, including better merchandise and product offerings through online grocery platforms are constantly added to suit the needs of various customers.
Growth Driver in the United States Online Grocery Market
Increasing Consumer Preference for Convenience
The growing preference for convenience is one of the key drivers of the United States online grocery market. Busy lifestyles and the need for time-saving solutions have led to an increase in the number of consumers adopting online grocery platforms. Such platforms allow features such as home delivery, curbside pickup, and easy accessibility, so customers can shop from the comfort of their homes. The system also has the best solutions with advance technology being self-integrated into personalized recommendations and automatic re-ordering, thereby making the convenience factor attractive to a more diverse group of shoppers. According to Meets Click and Mercatus Grocery Shopping Survey, November 2024, 77.8 million households bought groceries online. This surpassed a record set in the first full month of the COVID-19 pandemic, April 2020 when the figure stood at 76.7 million. In addition, in November, 72% of all MAUs used just one fulfillment method.Technological Advancements and Digital Payment Solutions
Technological advancements are playing a significant role in the growth of the online grocery market. Innovations like artificial intelligence, machine learning, and automated inventory management are improving the efficiency and personalization of services. Furthermore, digital payment options like mobile wallets and contactless payments have increased faster and more secure ways of transactions, which push people to adopt more. With such advancements, the shopping experience for the consumer becomes seamless, increasing customer loyalty and market penetration for these online grocery stores. Dec 2023, Instacart, the leading grocery technology company in North America and Fairway Market announced the "Fairway Now," a new fast home delivery service powered by Instacart that lets Fairway Market customers access last-minute groceries and household essentials in as fast as 30-minutes.Growing Acceptance of Subscription Services and Loyalty Programs
Online grocery market is growing due to the increasing adoption of subscription services and loyalty programs. These programs offer their customers exclusive discounts, personalized offers, and the comfort of automatic deliveries. With growing consumerism demanding more value for money, a subscription model presents an attractive avenue for repeat purchasing and long-term engagement. Besides, loyalty membership helps in maintaining customers through unique experiences and contributes to higher customer satisfaction and market penetration. Loyalty membership is on the rise in the US as the consumers seek to get personalized deals and discounts. US consumers owned an average of 19 loyalty program memberships per individual in 2024, the highest rate of 10 years, The Bond Loyalty Report reported.United States Online Grocery Market Challenges
Intense Competition and Price Sensitivity
High competition is another significant challenge in the United States online grocery market, with many players offering the same services. The numerous options available to customers make them sensitive to price, which complicates the maintenance of profit margins for retailers. With easy comparison across different platforms, pressure mounts to offer competitive prices and more frequent discounts, which can stretch the profit margins. Moreover, the smaller grocery retailers face challenges in competing with the well-established giants, hence limiting their market share.Logistical and Delivery Challenges
Logistics and delivery still pose a huge challenge to the online grocery market. The proper management of massive distribution networks, timely delivery, and the freshness of perishable items require enormous investments in the supply chain infrastructure. Ineffective delivery processes will lead to delay, increased operational cost, and dissatisfied customers. Furthermore, last-mile delivery challenges in rural or underdeveloped areas inhibit market growth and limit accessibility to certain demographics.United States Online Vegetables and Fruits Grocery Market
The U.S. market for online groceries in vegetables and fruits is rising rapidly, on account of more and more demands from consumers on fresh, healthy, and convenience options. Along with busy lifestyle and preference toward contactless shopping, this market is rapidly shifting toward grocery purchases online from their preferred places. These platforms provide shoppers with a selection of organic locally sourced and sustainable fruits and vegetables, along with a personalized in-store experience. The technology improves the shopping process with real-time inventory updates as well as access to subscription-based services. Secondly, health and wellness awareness is propelling the fresh produce online grocery platforms in the U.S. July 2024, The Fresh Market specialty fresh food retailer reports that it will open two new stores in the Washington, D.C. region.United States Online Subscription Purchase Grocery Market
The United States online subscription purchase grocery market is growing rapidly with the increasing need for convenience, variety, and customized services among the consumers. The subscription model is also able to cater to customers who order groceries, meal kits, and specialty items at regular intervals for busy lifestyles and health-conscious consumers. The platform also provides the customers with a wide range of options, discounts, and flexibility to make their shopping experience worthwhile. In addition, advancements in technology such as AI-driven recommendations and smart ordering also fuel this market's growth. More convenient and tailored grocery solutions are making subscription-based services a preferred choice, further increasing the growth in the U.S. market. In April 2024, Amazon launched a new grocery delivery subscription in the United States for members of its Prime program and customers who are recipients of the government food assistance benefits.United States Click & Collect Grocery Market
The United States Click & Collect grocery market is expanding rapidly. This model is providing consumers with a convenient means of ordering groceries online and picking them up at a designated location. It integrates the ease of online shopping with the flexibility of in-store pickup, reducing wait times and ensuring that customers receive their items on their schedule. Click & Collect services are especially popular among busy people and families who want to shop with minimal hassle. Furthermore, technological advancements, including real-time inventory management and personalized order suggestions, improve the efficiency of the service. The demand for contactless solutions and the increasing focus on convenience are driving further adoption of Click & Collect in the U.S. grocery market. In May 2022, Walmart's aerial announced that it will collaborate with DroneUp to reach new heights by launching expanded drone delivery services. This would enable them to serve potential clients in about 4 million homes across six US states.United States Online Grocery Market Segments
Product
- Vegetables and Fruits
- Dairy Products
- Staples and Cooking Essentials
- Snacks
- Meat & Seafood
- Others
Purchaser Type
- Subscription Purchase
- One Time Purchase
Delivery Type
- Click & Collect
- Home Delivery
All the companies have been studied from three points
- Overview
- Recent Development
- Revenue Analysis
Key Players
- Tesco Plc.
- Walmart Inc.
- Instacart
- The Kroger Co.
- Costco Wholesale Corporation
- Target Corporation
- FreshDirect
- Peapod Online Grocer, LLC
Table of Contents
1. Introduction2. Research Methodology3. Executive Summary5. United States Online Grocery Market
4. Market Dynamics
6. Market Share
7. Product
8. Purchaser Type
9. Delivery Type
10. Porter’s Five Forces Analysis
11. SWOT Analysis
12. Key Players
Companies Mentioned
- Tesco Plc.
- Walmart Inc.
- Instacart
- The Kroger Co.
- Costco Wholesale Corporation
- Target Corporation
- FreshDirect
- Peapod Online Grocer, LLC
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | March 2025 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 183.26 Billion |
| Forecasted Market Value ( USD | $ 715.54 Billion |
| Compound Annual Growth Rate | 16.3% |
| Regions Covered | United States |
| No. of Companies Mentioned | 8 |
