The Snap36 Blog

10 Stats that Prove Consumers are Hungry for Online Groceries

In 1996, a group of investors founded Webvan, the first online grocery retailer. At that time, the investors believed consumers would jump at the opportunity to fill their refrigerators in the comfort of their own homes. Unfortunately, and as it happens with many startups, the concept was ahead of its time and introduced before consumers were truly ready to buy their groceries online. Over two decades later, the online grocery market is exploding. While online grocery services have been around for a number of years, Amazon’s acquisition of Whole Foods has awoken a sleeping giant, accelerating the growth of the market exponentially.

Shifting Grocery Shopping Behavior

With change comes the challenge of shifting old habits. Grocery shoppers enjoy the experience of walking around, picking up different items, and inspecting all of the product details. At Snap36, we understand that picking up products on a shelf should be extremely similar to your experience online. 360-degree imagery provides online shoppers the freedom to interact with the products as if they were making the purchase in person. With this interactive solution, we are offering a seamless transition to creating your “digital shelf.” 

Snap36 is working with GS1 to create image standards and partnering with product data and syndication platforms such as 1WorldSync and Salsify to help companies optimize their online grocery strategy and deliver positive results. We produce multiple images of grocery items from all angles to accommodate for any image needs, including planograms, marketing, nutritional / ingredient information, and barcodes. Brands and retailers are quickly realizing that high-quality product imagery is the quickest path to customer engagement and conversion online. This trend is only going to increase. We’ve compiled the most compelling statistics to demonstrate the impact this change in consumer behavior is having on the grocery retail market.

1) 23% of all shoppers are now online grocery shoppers. [Source]

2) Online sales of groceries grew by 13% globally in the 12 months ending June 2018 and now account for 6.3% of all fast-moving consumer goods (FMCG) sales worldwide. [Source]

3) Digital grocery sales in the US are estimated to reach $59.5 billion by 2023 from $23.9 billion in 2018. [Source]

4) 48% of US grocery shoppers currently purchase at least some of their groceries online and 59% intend to in 2019. [Source]


Shoppers that Buy Online Groceries

5) Online grocery sales are predicted to capture 20% of total grocery retail by 2025 to reach $100 billion in consumer sales, according to a study by the Food Marketing Institute conducted by Nielsen.

6) Amazon and Walmart, by far the largest edible grocery retailers in the world, will continue to go head-to-head in the race for global leadership. Amazon will grow its food e-commerce sales from $8 billion to $15 billion by 2024, while Walmart increases its share of the market from $6 billion to $14 billion. [Source]

7) Age and affluence are no longer inhibitors to online shopping – 61% of Millennials, 55% of Generation X, 41% of Boomers, and 39% of Greatest Generation have recently purchased a CPG product online.  [Source]

Millennials Purchase CPG Product Online0%
Generation X Purchase CPG Product Online0%
Boomers Purchase CPG Product Online0%
Greatest Generation Purchase CPG Product Online0%

 8) According to Forbes, Amazon’s most popular grocery category is beverages, followed by No. 2 coffee, No. 3 snack foods, No. 4 breakfast foods, and No. 5 candy.

9) With an ecommerce-focused strategy, Kroger expanded home delivery to 91% of households and rolled out its online grocery pickup to 1,581 of its 2,764 stores in 2018. [Source]

10) Millennials are spearheading online grocery shopping. Data from IRI found that 55% of 25- to 34-year-olds considered themselves very or somewhat likely to purchase groceries online. Some 45% of respondents ages 35 to 44 and 35% of those 45 to 54 said the same. [Source]

As you can see, consumer behavior is shifting and the time to adjust is now! Grocery shopping is moving online and the industry is more crowded and competitive by the minute, especially with innovators Amazon and Walmart encroaching on market share. This presents vast opportunities for early adopters that can move quickly to improve online product content. The key to succeeding in online grocery means displaying relevant, informative product information that is conveniently accessible and interactive for consumers.

Whether you have 10, 100 or 10,000 food products, we can help you accelerate the creation of your digital shelf. To learn more, get in touch.

Need help increasing your e-commerce conversion rate? Websites that are using 360 product photography increase conversions by up to 47%.