The "United States Online Grocery Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033" report has been added to ResearchAndMarkets.com's offering.
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.
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.
Key Players: Overview, Recent Developments, Revenue Analysis
- Tesco Plc.
- Walmart Inc.
- Instacart
- The Kroger Co.
- Costco Wholesale Corporation
- Target Corporation
- FreshDirect
- Peapod Online Grocer, LLC
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value (USD) in 2024 | $183.26 Billion |
| Forecasted Market Value (USD) by 2033 | $715.54 Billion |
| Compound Annual Growth Rate | 16.3% |
| Regions Covered | United States |
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. United States Online Grocery Market
6. Market Share
6.1 By Product
6.2 By Purchase Type
6.3 By Delivery Type
7. Product
7.1 Vegetables and Fruits
7.2 Dairy Products
7.3 Staples and Cooking Essentials
7.4 Snacks
7.5 Meat & Seafood
7.6 Others
8. Purchaser Type
8.1 Subscription Purchase
8.2 One Time Purchase
9. Delivery Type
9.1 Click & Collect
9.2 Home Delivery
10. Porter's Five Forces Analysis
10.1 Bargaining Power of Buyers
10.2 Bargaining Power of Suppliers
10.3 Degree of Rivalry
10.4 Threat of New Entrants
10.5 Threat of Substitutes
11. SWOT Analysis
11.1 Strength
11.2 Weakness
11.3 Opportunity
11.4 Threat
12. Key Players
For more information about this report visit https://www.researchandmarkets.com/r/uul5wu
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250313360954/en/
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