Online Grocery is rapidly growing from its small base. Its market value doubled from 2016 to 2018, indicating that consumers are starting to order essentials and some groceries more easily online. A major obstacle to adoption.
In the meantime, A product type popular with online grocers, Consumer Packaged Goods (CPGs), has seen most of its growth come from the Internet. Although consumers are not yet completely confident about purchasing items like the products online, it is likely that this will come as their knowledge and confidence in online groceries grow.
Grocers are trying to tap into this potential, which leads to a very competitive market. Both established grocers and new entrants to the industry are expanding their offerings of roadside pickup and delivery—the two essential components of online groceries—in a bid to gain market share.
They each follow different strategies for success: Amazon, for example, relies on e-commerce and fulfillment capabilities to offer a variety of online grocery services, while Walmart uses its strong presence to its advantage. Still others, like Kroger and Aldi, work with third parties like Instacart to provide their services.
at first Online food reportBusiness intelligence from withinIt examines a variety of curbside grocery pickup and delivery options for groceries and analyzes how they compare to competitors’ strategies, how profitable they are for groceries, and what their future might hold. While there are companies like Instacart that provide online grocery services to other grocers, we focus specifically on companies that sell their own products. Finally, we examine the different strategies businesses can use to improve the profitability of their online grocery offerings.
The companies mentioned in this report are: Aldi, Amazon, Ford, Instacart, Kroger, Ocado, Postmates, Target, Walmart, Whole Foods
Here are some key points from the report:
- Online groceries currently make up a small portion of all grocery purchases, but they are rapidly increasing. The adoption rate remains very low, with about 10% of American consumers saying they regularly shop for groceries online. According to the NPD.
- However, the value of the US online grocery market has grown from $12 billion in 2016 to $26 billion in 2018, and it has a lot of room for growth considering the size of the total grocery market in 2018 was $632 billion accordingly.The world of IBIS.
- Well-known grocers like Walmart and Kroger and new entrants like Amazon are scrambling to improve curbside pickup and delivery options, each employing different strategies that reflect their size and strength.
- Regardless of the individual strategies of grocery sellers, they all need to find a way to operate their online grocery offerings in a profitable manner and break down the barriers of consumer acceptance.
The full report:
- Evaluates the current online grocery market and provides a forecast for the market up to 2023.
- Examines the best grocery tactics for online grocers.
- Consider future strategies that major grocers may use for online grocery success.
- Discusses how grocery sellers can address profitability issues.
Would you like to get the full report? How to reach:
- Purchase and download the full report from our research store. >> Buy and download now
- sign for Payments and Trade ProBusiness Insider Intelligence’s expert suite of products that keep you connected to the people, technologies, trends and companies shaping the future of consumption, delivered to your inbox 6 times a week. >> start
- Join the thousands of top companies around the world who trust Business Insider Intelligence for their competitive research. >> Inquire about our corporate memberships
- Existing subscribers can read the report over here.
Read the original article on Business Insider
Source site – 19