Ecommerce in the Grocery Sector: Retailers and Brands Innovate to Propel Growth in 2017 - eMarketer

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Ecommerce in the Grocery Sector: Retailers and Brands Innovate to Propel Growth in 2017

eMarketer Report

By: eMarketer

Published: April 05, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Shifts in how retailers and consumer packaged goods (CPG) brands think about ecommerce, combined with an accelerating acceptance among consumers for buying food digitally, have boosted online sales of groceries. Retailers and brands are taking note of these changing consumer behaviors and offering more digital options for grocery shopping and delivery, which will continue to drive the trend upward in 2017 and beyond.

  • While the majority of grocery shopping is still conducted in-store, more consumers are testing and adopting ecommerce options for buying food. Digital grocery sales are expected to be the biggest driver of growth in the ecommerce sector as a whole over the next five years.
  • Retail options for consumers are multiplying, as are choices for delivery, making it easier for shoppers to test and ultimately adopt online grocery shopping.
  • Personalization strategies help to sort through the thousands of products available from online retailers, reducing the time it takes consumers to grocery shop—in turn generating repeat business.
  • Smartphones and other connected devices are enabling “always-on” behavior among shoppers, who are compiling grocery lists using internet of things (IoT) technologies such as Amazon Echo.
  • Brands are recognizing the need to take control in the ecommerce channel and are working with retailers to ensure their products appear in the digital aisle in such a way that shoppers will find them.
  • Retailers and brands are taking note of how to create a frictionless online experience, from ordering to pickup or delivery. They have one chance to get it right: A bad experience with one retailer could turn a consumer off to online grocery shopping for good.

"Digital grocery sales are expected to hit $71 billion in 2017, a 34% increase from 2016."

Table of Contents

Growth in Grocery Ecommerce

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More Options for Digital Grocery Services

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It’s Personal: Targeting the Grocery Shopper

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The Always-On, Omnichannel Shopper

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Brands Are Part of the Ecommerce Ecosystem

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Brick-and-Mortar Retailers: Adapt or Lose Ground

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Get It Right: The Consumer Experience

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17 charts are included in the full report:

Ecommerce in the Grocery Sector: Retailers and Brands Innovate to Propel Growth in 2017

US Digital Grocery Sales, 2013-2022 (billions)

Growth in Grocery Ecommerce

US Internet Users Who Are Likely to Purchase Groceries Digitally, 2015, 2016 & 2017 (% of respondents)

Timeframe in Which US Digital Grocery Buyers Last Purchased Groceries Digitally, Nov 2016 (% of respondents)

US Retail Ecommerce Sales Share, by Category, 2017 (% of total retail sales)

US Digital Grocery Sales, 2013-2022 (billions)

More Options for Digital Grocery Services

US Internet Users Who Have Access to Grocery Retailers that Offer Digital Grocery Services*, Fall 2015 & Fall 2016 (% of respondents)

Frequency with Which US Grocery Buyers Purchase Groceries Digitally*, by Demographic, Dec 2016 (% of respondents in each group)

US Internet Users Who Currently Purchase Groceries Digitally vs. Those Who Are Likely to Purchase Groceries Digitally, by Age, Jan-Dec 2016 (% of respondents in each group)

US Grocery Buyers Who Purchase Groceries Digitally, by Percent of Groceries Purchased Digitally, May 2016 (% of respondents)

Sites Used by US Digital Grocery Shoppers to Purchase Groceries Digitally, Jan-Dec 2016 (% of respondents)

It’s Personal: Targeting the Grocery Shopper

Current vs. Expected Use of Targeting/Personalization for Digital Outreach According to US Grocery Retailers, Dec 2016 (% of respondents)

Allocation of Ad/Marketing Budget According to US Grocery Retailers, by Channel, 2015 & 2016 (% of total)

The Always-On, Omnichannel Shopper

Primary Device Used by US Digital Buyers to Make Digital Purchases, Jan 2017 (% of respondents)

Brick-and-Mortar Retailers: Adapt or Lose Ground

Usage of Select Digital Technologies According to US Grocery Retailers, Dec 2016 (% of respondents)

Current Strategic Priorities for Their Organization According to Retail Executives Worldwide*, Dec 2016 (% of respondents)

Actions that Will Affect Their Organization's Profitability According to Retail Executives Worldwide*, Dec 2016 (% of respondents)

Get It Right: The Consumer Experience

Most Important Factor in Building Brand Loyalty According to US Senior Marketers, Nov 2016 (% of respondents)