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July 9, 2020, 2:48 a.m. EDT

Online Grocery Market Steals Spotlight from Brick and Mortar Stores, Surging at a Remarkable 23% CAGR, finds Future Market Insights

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Jul 09, 2020 (MARKITWIRED via COMTEX) -- Online grocery shopping has been popular among younger generation, but COVID-19 outbreak pulled this novel form of shopping to mainstream. Apart from millennial, which account for more than 32% of the global population, online grocers also witnessed sizable traction from new customer archetypes. These customer groups were geriatric and sub-urban consumers. Witnessing traction from such a diverse customer archetypes, online grocers also worked on their offering and expanded the portfolio of products and inventories.

Citing shiftingconsumer preferences, Future Market Insights (FMI) projects a massive 23%year-on-year growth for the online grocery market between 2020 and 2030. In itslatest report, FMI studies the scope for expansion of the market across theglobe and examines investment feasibility in key segments.

Driven by theincreasing consumer spending, improving rate of employment and overall economicgrowth, online grocery shopping has spurred. Several brands have reported amultifold surge in sales as a direct consequence of strategies undertaken toboost their online presence and portfolio.

Following e-commerceboom, online grocery shopping is gaining momentum - a trend which is unlikelyto subside in the near future. FMI offers valuable insights into the onlinegrocery market. Some of these are:

  • Personalized and smart packaging are likely to dominate the online grocery shopping scene. FMI's data, revealing that packed food has comfortable lead over other product types, reiterates the same observation

  • Presence of a high percentage of millennial has sealed East Asia's position as a highly lucrative market for online grocery

  • Subscriptions segment is poised to surge at a higher CAGR among purchaser type. Subscription based online shopping is expected to gather steam as consumers look for better convenience and personalized solutions

Economists at FMIsays that online grocery shopping is one of the fastest growing sectors in theU.S. retail. As the number of online shoppers grow it is expected thate-retailers would focus on unique strategies. For instance, many of establishede-retailers are partnering with small and medium service providers who wouldhelp them with door-step delivery to consumers.

Besides leveragingstrategic collaborations, several e-retailers are innovating smart packagingsolutions to improve overall purchase experience. QR codes are often used tooffer special discounts and coupons to customers.

Overall, there isincreasing focus on digitizing solutions to cater to the changing consumerneeds. For instance, Amazon.Com Inc. has invested heavily in the development ofits integrated and high-tech logistics. Through this, it intends to expand itsnetwork and geographical footprint.

With severalinnovations and technological developments underway, the online grocery marketis poised to surge exponentially in the near future.

COVID-19 Outbreak Ushered a New Dawn for Online Shopping

COVID-19 outbreak hasushered a new era for online shopping. The unprecedented spread of the virusbrought about several changes in consumer behavior. There is at least onespending shift that is bound to stick around even after coronavirus passes:buying grocery online.

The U.S., China, andIndia exhibit a high demand for groceries. Instant gratification has remainedthe unique selling proposition (USP) of brick and mortar stores, giving them anedge against online shopping. The table has however turned in favor of onlinegrocery.

Stay-at-home ordershave affected just over 300 million Americans, changing their retail habitsforever. In the wake of COVID-19 pandemic, daily ecommerce sales nearly doubleditself between March and April.

Grim sales outlookfollowing the COVID-19 outbreak and onslaught brought about by ecommercebehemoths have compelled even the most formidable brands to rethink theirstrategies.

Target and Walmartare two retailers holding themselves up against the perils brought about by thepandemic. Both had realized that online grocery was the key to avoid furtherwounds by Amazon.com a long ago. Accordingly they invested in improving theironline presence.

This robust uptake ofonline grocery shopping among consumers is not a phrase rather experts believethis could might as well be a reflection of permanent change in consumerbehavior.

Who is winning?

Some of the keyplayers operating in the online grocery market are Amazon.com Inc., WalmartInc., The Kroger Co., Peapod LLC, Fresh Direct LLC, Target Corporation, PublixSuper Markets Inc., Best Buy Co. Inc., Instacart, Costco Wholesale Corporation,Safeway Inc., Carrefour S.A., Tesco PLC, Edeka Group, Aldi, Alibaba Group,JD.Com, Honestbee, Grofers India Pvt. Ltd., Avenue Supermarts Ltd. and amongothers.

Several onlinegrocery/ e-retailer companies are entering into strategic partnerships withprominent retailers to cater to the growing demand for groceries and otheressential items.

  • Walmart Inc. has entered into a strategic partnerships with four third-party delivery providers which are Point Pickup, Skipcart, AxleHire, and Roadie to help the company provide on-time delivery to its customers

  • In India Domino's Pizza, Uber, Rapido, Swiggy, Zomato, and other have ventured into grocery delivery in collaboration with online grocers such as BigBasket and Grofers and retail chains such as Big Bazaar and Spencer

Get Valuable Insights into Online Grocery Market

Future MarketInsights, in its new offering, provides an unbiased analysis of the globalonline grocery market, presenting historical demand data (2015-2019) andforecast statistics for the period from 2020-2030. The study divulgescompelling insights on the online grocery market based on the product type(packed goods {snacks, baked products, breakfast & cereal, ready-to-eatfoods, ready-to-drink beverages, dairy products, staples & cookingessentials}, and fresh produce), purchaser type (one-time purchasing,subscription), and delivery type (home delivery {company owned stores andthird-party providers} and click & collect) across seven major regions.

COMTEX_367865498/2612/2020-07-09T02:48:27

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

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