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Freedonia Market Research Press Releases Online Grocery Market to Continue Double Digit Expansion Through 2027

Online Grocery Market to Continue Double Digit Expansion Through 2027

by Cara Rasch

May 22, 2023

Rockville, MD, May 22, 2023 — The future of grocery shopping is increasingly digital. Online grocery sales nearly tripled in 2020 due to pandemic-fueled changes and expectations for contactless transactions. Sales were also strong in 2021 and 2022 as many consumers continued pandemic-era habits and desired convenient ordering. Double-digit advances in the online grocery market will continue, with sales expected to grow at an average annual rate of 12.0% through 2027, according to Packaged Facts’ new report The Future of Grocery: Online Grocery, Meal Kits, & Direct-to-Consumer Food.

Packaged Facts’ March 2023 National Online Consumer Survey indicates that 52% of adult consumers had used a grocery delivery option in the preceding year, while 27% utilized grocery pickup. 21% of consumers had used meal kit delivery services in the last year, while 17% had used prepared meal delivery services.

Consumers are looking for convenience in how they get and prepare their foods, and online grocery shopping options facilitate:

  • ordering on one’s own time (even outside of store business hours)
  • home delivery or appointments for curbside pickup
  • access to foods not available locally, including specialty types or foods to suit particular eating habits or allergy limitations
  • assistance with meal planning, as platforms suggest combinations and recipes
  • assistance with meal preparation, as some formats supply precooked, premeasured, or otherwise semi-prepared meal elements

While the pandemic is receding as a primary driver of habits (as of 2023) and consumers are resuming pre-pandemic activities, online grocery ordering is sticking around. Remote work, both full- and part-time, will continue for the sizable segment of the population that started or expanded the practice during the pandemic. Consumers who used to make purchases during their daily commutes have established new habits – like online ordering – since leaving the home to shop has become less convenient.

The Packaged Facts report The Future of Grocery: Online Grocery, Meal Kits, & Direct-to-Consumer Food report evaluates the dynamics of the current landscape of the online food and beverage market. Consumer demographics, perceptions, motivations, and behavior are examined as pertaining to dietary choices and use of food delivery and pickup services. Attitudes on food, diet, health, and product packaging are studied. Effects of recent historical trends on consumers – including the COVID-19 pandemic and the inflation era – are considered in both a broad sense and in the context of the online grocery market.

This report provides information about online retail sales of food and beverages to consumers in the following product categories:

  • Shelf-stable foods and beverages in cans, bottles, or other packaging (including alcoholic beverages)
  • Meal kits and prepared meals
  • Perishables such as fresh fruits and vegetables
  • Dairy and egg products
  • Meat, poultry, and seafood
  • Bakery items
  • Frozen foods

This report includes online sales of such items from:

  • Store-based grocers (e.g., Kroger, Safeway, ALDI)
  • Mass merchandisers (e.g., Walmart, Target) and warehouse clubs (e.g., Costco, Sam’s Club, BJ’s)
  • Online-based grocers (e.g., Amazon, Thrive Market, Hungryroot)
  • Brands that sell their own food products via their websites, direct-to-consumer
  • Meal kit and prepared meal delivery services (e.g., HelloFresh, Sakara Life, Factor 75)
  • Third-party pack-and-deliver companies that use their own workforce to purchase groceries at various stores and deliver them to customers (e.g., Instacart)
  • Local co-ops and farmers’ markets that arrange for subscriptions, single orders, and pickup or delivery digitally

Historical numbers for the online grocery market are provided from 2017 through 2022. Market forecasts are provided for 2023-2027 and 2032. Historical numbers for the meal kit delivery services market are presented from 2019 to 2022. Market projections are provided for 2023-2027 and 2032.

The reasons for and implications of shifts in consumer perception and behavior are analyzed in the context of future market opportunities.

Additionally, the report has dozens of tables showcasing numerical survey data on consumer demographics and psychographics and numerous marketing photographs. This report goes in-depth on COVID-19 and inflationary trends affecting the food and beverage market.

About Packaged Facts

Packaged Facts publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, the food and beverage market, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.

For more essential insights from Packaged Facts be sure to follow us on Twitter, LinkedIn, and YouTube.

Media Contact: [email protected]  

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