CHICAGO — Online retail sales of food and beverages, including in-store pickup, curbside delivery and home delivery, tracked by Euromonitor International, will reach $76 billion in 2022, with market researchers predicting that online grocery will It is predicted that this will become the largest source of growth for the beverage industry. US beverages in the future.
About 26% of Americans used online grocery shopping services in 2022, up from 13% before the coronavirus pandemic, according to Euromonitor.
High-income millennial parents with young children are the core users of online grocery shopping. Such services save time for this group of consumers, who value having children and busy lifestyles.
According to Euromonitor, future growth will require convincing younger generations that the time gained by having their groceries ready at the time of pick-up or delivery is worth the extra cost. Families with young children are likely to remain the group most actively using services. However, declines in marriage and birth rates may hinder growth. According to the study, by 2030, the number of households with children in the United States is expected to decrease by 1.4 million, while the number of households without children is expected to increase by 6.7 million.
The convenience of online shopping draws shoppers to ready-made meals and soups, dairy products, processed meats and seafood, and savory snacks, which are key categories in e-commerce.
Euromonitor said shoppers were ordering fewer baked goods and fresh produce through online channels, while dairy products, processed meat and seafood, confectionery and carbonated drinks all performed well.
Selling fresh produce online remains a challenge as shoppers prefer to choose their own fresh produce. According to the study, fresh produce accounts for 12% of total online food and beverage sales, less than half of total grocery sales. Consumers may trust others to choose eggs, nuts, and sugar while shopping online, but they don't trust others to choose meat, seafood, and produce.
Baked goods have the same issues as fresh produce. Fresh cakes, breads and pastries are purchased less frequently online, but more highly processed and standardized varieties perform better. Other categories for which there are no fresh alternatives, such as desserts, mixes, rice and pasta, tend to fare better with online shopping, according to the study. Snacks have a slight lead in online grocery over in-store.
Beverages, especially alcohol, are facing a more difficult time than other categories. The study found that alcoholic beverages were ranked last when it came to online shopping. Each state has its own laws, making it difficult for the category to get along. According to the study, wine was the largest category of alcoholic beverages sold online, accounting for 18% of total alcoholic beverage sales in the United States.
According to the survey, consumers appear to be leaning towards hot drinks, which account for 8% of online sales and 3% of retail packaged food and beverage sales in physical stores.
Sales of soft drinks remained stable both online and offline. According to this study, powdered concentrates account for 1% of overall beverage sales, while in online sales they account for 10%.
Four companies dominate the grocery e-commerce space. Walmart accounted for his 25% of online food and beverage sales in 2022. Instacart was the second-largest online retailer, accounting for about a quarter of U.S. online grocery sales. Amazon ranked third, showing its presence in categories such as hot drinks and snacks. According to the study, Kroger accounted for 9% of online grocery sales, ranking fourth.
