Online grocery market is witnessing significant growth due to urbanization and the convenience of doorstep delivery.
The US online grocery market is set to grow massively over the next four years. According to a new study by Technavio, it will jump by USD 1.65 trillion from 2024 to 2028.
66% of the growth will originate from Asia-Pacific countries.
This is largely attributed to the rise in e-commerce. The report emphasizes that artificial intelligence (AI) is shaping the grocery space. It’s improving supply chain efficiency, predictive analytics, and demand forecasting.
What is driving the online shopping market?
The online grocery market is witnessing significant trends as urbanization increases and consumers seek convenience and time-saving benefits.
Technavio’s research has found that e-grocers are adapting to this shift by offering online payments and contactless delivery.
According to research by Adobe Analytics, most customers will be shopping with their mobiles this festive season.
Mobile shopping is expected to drive 53% of online sales during the 2024 December-January shopping season.
Small-scale grocers and food-delivery platforms are also showing promising results, bringing with it competition and variety.
The report states that e-commerce technology, including mobile applications, logistics, and secure payment gateways, is driving growth.
What products are customers interested in buying online?
Fresh produce, RTE food, snacks, and beverages are popular categories, with organic and locally sourced options gaining popularity.
What are customers after:
- Faster deliveries.
- Reliable deliveries.
- Cashback offers.
Tech-savvy consumers seem to me more after efficient delivery logistics and user-friendly interfaces.
Walking down the aisles, fresh produce, snacks, and beverages these categories are still very popular among online shoppers.
Organic and locally sourced options are still gaining popularity.
Market challenges faced by online grocery sector
Urbanization is certainly boosting online grocery shopping, but it comes with a persistent challenge of online payments, contactless delivery and brand awareness for smaller grocers.
The report highlights that grocers and food-delivery platforms are facing hurdles in implementing secure payment gateways and ensuring the quality of milk products and fresh produce.
It suggests that traditional retailers must adapt to tech-savvy consumers’ preferences for convenience, freshness, and variety.
Another challenge is to build trust among shoppers. End-users are seeking flawless and satisfying purchases.
Experts believe that the preference for traditional grocery shopping remains strong due to the tangible experience it offers.
Modern consumers are concerned about product quality and particularly freshness. All of these are crucial for perishable goods.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
