Market Research Reports - Ken Research USA Grocery Market, US Online Grocery Sales | Page 2

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. Other
product category includes beverages, household products, personal care and others.
By Mode of Ordering: Website as mode of ordering for online grocery shopping captured
revenue share of ~% 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.
Competitive Scenario
Online grocery market in the US is observed to be highly concentrated with the presence of few
players capturing major share of the market. Wal-Mart, AmazonFresh, Peapod, Kroger,
FreshDirect and Safeway were observed to operate in the online grocery market. AmazonFresh
is the leading player in the US online grocery market with revenue share of ~% in online grocery
market during 2016. Wide operations all over the country and strong marketing and
distribution initiatives have attracted large number of consumers to buy products through this
brand. Walmart followed AmazonFresh in the online grocery market in the US majorly due to
trust factor associated with the company.
Future Potential
US online grocery market is expected to grow at a CAGR of ~% from USD ~ billion in 2016 to
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. Wal-Mart has an
expansion strategy as a part of which it announced the plans 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.
US Online Food Delivery Market
The market of th e online food delivery in the US has witnessed an increasing trend in the
revenue growth during the period of six years (2011-2016). In 2016, revenues of the overall
industry amounted to USD ~ billion. The market reported growth at a CAGR of ~%, from USD ~
billion noted in 2011. Food delivery market has increased over the years owing to changing