The report titled “US Online Grocery and Food Delivery Market Outlook to 2021 – Growing Popularity of Online Mode of Shopping among Millennials in the US to Foster Future Growth” provides a comprehensive analysis on market size generated by online grocery market and food delivery market on the basis of GMV. The markets are further segmented on the basis of product category and mode of ordering. Various market dynamic sections including business models, value chain analysis, trends and developments, SWOT analysis, and issues and challenges has been added in report for clear understanding about current scenario of the market. Competitive landscape section added in the report highlights the market share of major players operating in the industry and profiles for key companies. The future analysis for both US online grocery market and food delivery market has been discussed in detail along with recommendations with analyst view. This report will help industry consultants; online grocery and food deliver chains, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future. The report covers competitive landscape of major players including Walmart, AmazonFresh, Peapod, Kroger, FreshDirect, Safeway, Domino’s, Grubhub, Pizza Hut, Papa John’s, Jimmy John’s, Eat24Hours, Postmates, DoorDash and Caviar.
US Online Grocery Market
The market of online grocery 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 ~ million. The market reported the growth at a CAGR of ~%, from USD ~ million noted in 2011. 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. 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. Additionally, the convenient facilities provided by the US online grocery players such as same-day delivery, pickup service, online apps, concierge shopping and others have increased the number of users of online grocery services resulting in increased revenue generation over the years.
Market Segmentation
By Product Category: 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. 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 the 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 consumer trends due to increased convenience, variety of products, time-saving factor and other reasons has resulted in increased revenue generation. Additionally, huge investments by the venture capitalists helped the US food delivery market in its growth as it resulted in emergence of various start-ups, who have actively promoted their companies with the help of advertisements and promotional vouchers, hence driving the food delivery market. Evolution of various start-ups such as Sprig, Grubhub, SpoonRocket and others acted as a major driver for the online food delivery industry.
Market Segmentation
By Food Type: Pizza dominated the US food delivery market with ~% revenue share in 2016 owing to the high consumption of pizza in the US. 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 Domino’s, 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. Other food type includes Non-Pizza food which includes Asian food, Sandwiches, Italian, Hamburger, and Mexican, Salads, Coffee and others. Non-Pizza food type accounted for ~% (~ billion) of the overall revenues of online food delivery industry in the US.
Competitive Scenario
Food delivery market in the US is observed to be highly concentrated with the presence of few players capturing major share of the market. Domino’s, GrubHub, Pizza Hut, Papa John’s, Eat24, Postmates, DoorDash, Jimmy John’s and Panera were observed to operate in the food delivery market. Domino’s is leading brand in the food delivery market in the US majorly due to trust factor associated with the company. The company being founded in the US in 1960 is one of the oldest companies in the food delivery market of the US. Additionally, it is a pioneer in the pizza delivery industry and the strategy of innovation of its products is a major growth driver. GrubHub followed Domino’s with second highest revenue share during 2016.
Future Potential
US online food delivery market is expected to grow at a CAGR of ~% during the forecast period owing to changing consumer trends of choosing food delivery over dining. The innovative technology such as drone delivery announced in the industry 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. The services are expected to expand to rural regions of the country which will aid to the overall market revenue.
Key Topics Covered in the Report
US Online Grocery and Food Delivery Market Introduction and Market Size
US Online Grocery Market Segmentation – By Product Category (Fruits & vegetables, Personal Care, Household products, Beverages, Bread & dairy products, Others) and By Mode of Order (Website, Mobile)
Online Grocery Market Customer Profile – By Frequency of Online Ordering, Type of Products Purchased, By Gender, By Age, By Online Shopping Preference, By Area, By Customer Retention and By Income
Major Operating Models of the US Online Grocers (In-Store Pick up, Drive-Through and Home Delivery)
Issues and Challenges in the US Online Grocery Market
Fulfillment Center Managed by Companies for the US Online Grocery Market
Market Share of Major Players of the US Online Grocery and Food Delivery Market
Company Profiles of Major Players of the US Online Grocery and Food Delivery Market
US Online Grocery and Food Delivery Market Future Outlook and Projections with Segmentation
US Online Food Delivery Market Segmentation – By Food Type (Pizza and Non-Pizza
Online Food Delivery Market Customer Profile – By Average Number of Restaurant Apps Download, Frequency of Using Food Delivery Services, Place of Order Delivery, Consumers Using Online Platform, Portals Which Consumers Use, By Age and By Income
Food Delivery Market Order Profile – By Price Range, Number of Orders Per User and By Days of Ordering
Trends and Developments in the US Online Grocery and Food Delivery Market
SWOT Analysis for the US Online Grocery and Food Delivery Market
Analyst Recommendations for the US Online Grocery and Food Delivery Market
Macroeconomic Indicators Affecting the US Online Grocery and Food Delivery Market
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