Online Grocery Shopping Trends US, Diet Food Delivery in the US - Ken Research

US Online Grocery and Food Delivery Market Research Report to 2021: Ken Research

How Online Grocery is Positioned in the US? The online grocery service industry in the US is at nascent stage.

The market has witnessed a robust growth over past six years. The online grocery industry has begun growing with the increase in millennials using online grocery has been on the rise over the years as they prefer paying more for the convenience and this behavior has led them to purchase grocery online even with high transportation charges. Moreover, the startup trend in this industry has made a positive impact on the market with various companies such as Shipt, Farmigo, Instacart and others entering the market.

Online grocery market has grown from USD ~ million in 2011 to USD ~ million in 2016, growing at a CAGR of ~% during the period. The increase in millennials using online grocery has been on the rise over the years due to increase in the smart phone users and internet penetration. Millennials prefer paying more for the convenience and this behavior has led them to purchase grocery online even with high transportation charges.

Which Product Category Dominated Online Grocery Market?

Bread and dairy products dominated the product category in the US online grocery market with revenue share of ~% of the total market in 2016 due to high usage of these products. Bread is staple food of the US and therefore, the usage of bread is highest, which results in excessive purchase of this product with the evolving online grocery, hence driving market for the segment. Similarly, the consumption of processed dairy products including cheese, evaporated and

condensed milk and ice cream has inclined in the US in the recent years, which further justifies the reason behind dominating share of the segment. Fruit and vegetables were observed to hold second share in the market with revenue share of ~% in the total market.

Rising consumption of fruits especially in form of juices has been observed as the major factor driving growth of the market. Both commercial and street wide juice vendors are observed to order fruits through online mode. Other product category includes beverages, household products, personal care and others.

Which Mode of Ordering is more popular in Online Grocery Market of the US? Website as mode of ordering for online grocery shopping captured ~ % revenue share in 2016 owing to the higher trust factor compared to mobile apps. The features such as comparability, big screen and others surpass the mobile apps. Moreover, there is no access to

personal information of the customer while using websites and websites use less memory as compared to apps. The consumers are observed to be more comfortable in purchasing grocery through website mode, which further drives the market for the segment. ~% of the online shoppers in the US prefer to do shopping from websites majorly due to clarity of picture and specifications through the source. Mobile as a mode of ordering for online grocery captured lower share than the website but is expected to grow in future owing to increase in tech savvy population, rise in smart phone users and internet penetration.

The rising population for using mobile for ordering online grocery can be advocated to high use of mobile apps such as Shipt, Instacart, Amazon Prime Now, Peapod, Google Express and others over the years. It was observed in 2016 that ~% of millennial used online grocery mobile app.

Which Factors are expected to Drive Growth of Online Grocery Market in the US in Future?

Online Grocery market will grow at a tremendous rate in coming future. The market will increase at a CAGR of ~% during 2016-2021 to reach at USD ~ billion in 2021 owing to rising smart phone users and internet penetration. Introduction of startups and mergers and acquisitions is anticipated to result in expansion of this market and number of stores and hence, the accessibility will increase for the consumers. Walmart had planned in 2016 to add additional 500 stores in the US. This will have a positive impact on the industry.

Millennials and Generation Z have generated the highest revenue in the US online grocery market and this trend coupled with the changing perception of the consumers about online grocery is anticipated as a major growth driver for US online grocery market.

Online grocery market will be largely dominated by Bread and Dairy products in coming future. The Bread and Dairy products orders will

contribute a share of ~% in 2021 with mobile-app mode of ordering getting more popular among the nationals.

Which Food Type is expected to Dominate Food Delivery Market in the US? Pizza dominated the US food delivery market with ~% revenue share in 2016 owing to the high consumption of pizza in the US. Italian is the most popular type of ethnic food in America and pizza tops the chart. Cheap deals and convenience have made pizza chains successful in the US. Moreover, easy availability and fast delivery have increased its consumer base leading to rising food delivery of pizza in the country. Additionally, the strong marketing strategies which include advertisements and promotional offers by players who are operating in Pizza-delivery market including Dominos, Pizza Hut, and Papa John’s has attracted huge number of customers towards them, providing segment dominant share. Pizza online

ordering generated ~% of the total online ordering revenue in 2016, clearly advocates high demand for Pizza delivery.

Which Mode of Ordering Generates More Revenue For Food Delivery in the US? Offline orders contributed ~% share in mode of food delivery in 2016 owing to the fact that people in the US tend to order through their mobile calls rather than through apps or website mode. Convenience and habit associated with ordering through offline mode has been considered as the major reason for high share of the segment. 9 out of 10 people in the US opted to order through phone for online or takeout food delivery orders in year 2015, clearly explaining reason for high share of the segment.

Online orders contributed ~% revenue share in mode of food delivery in 2016. The increase in number of smart phone users over the years has been observed as the major reason for changing consumer

behavior towards online ordering. This has increased food delivery market revenue generation through online medium. The number of online orders doubled from ~ million in 2010 to ~ million in 2015, showing the trend of offline delivery shifting towards online delivery.

How are US Online Food Delivery market positioned?

The food delivery business in the country witnessed a rapid change majorly owing to introduction of new online platforms in the country.

The online food delivery industry has been transforming over the years and the market incorporates two types of business models. The most common form of delivery method is still the traditional model in which the consumer places an order with the local restaurant over the phone and waits for the restaurant to bring food to the customer’s doorstep. This traditional model has occupied maximum share in the market and most of the orders are still placed on phone.

As the digital technology is reshaping the customers are getting

accustomed to placing order through mobile applications or websites. In terms of revenue, US online food delivery market witnessed positive growth with revenues increasing from USD ~ billion during 2011 to USD ~ billion during 2016 at a CAGR of ~% during 2011-2016. Online food delivery players allow consumers to compare offerings and order meals from a group of restaurants through a single website or app. Availability of multiple cuisines and various restaurants on a single platform for a minimal delivery charge attracted customers towards online food delivery.

Which Factors are expected to Drive Future Growth of the US Food Delivery Market?

Online Grocery market will grow at a tremendous rate in coming future. The market will increase at a CAGR of ~% during 2016-2021 to reach at USD ~ million in 2021 owing to changing consumer trends of choosing food delivery over dining. The innovative technology Such

as drone delivery announced by Amazon shall attract more customers to the food delivery market due to the factors such as time-saving and convenience. More technological advancements like this are expected to be introduced in the market during the forecast period, hence driving the market. The food delivery services are expected to penetrate further in more cities and reach more consumer base leading to a positive impact on this industry.

Companies Cited in the Report List of Companies Companies Covered in Wal-Mart the Report Amazon Fresh Peapod Kroger FreshDirect Major Players in the US Online Grocery Safeway and Food Delivery Market

Domino’s GrubHub Pizza Hut Papa John’s Eat24 Postmates DoorDash Jimmy John’s Panera Key Factors Considered in the Report USA Grocery Market Food Delivery Apps in US Online Grocery Orders US Food Delivery Startups in US Number of Orders Grocery US

Online Food Ordering in the US Food Delivery Shopping Online US Amazon Grocery Market US Diet Food Delivery in the US Food Delivery Startups in US Home Delivery Takeaway in the US Number of Restaurant Apps Download US Competition in Online Grocery Market Online Grocery Shopping Trends US Online Food Delivery App Download US Kroger Market Share Grocery US For more information on the market research report please refer to the below link: https://www.kenresearch.com/technology-and-telecom/it-and-ites /us-online-grocery-food-delivery-market/142260-105.html

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