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North America: Online grocery sales to quadruple by 2023Tuesday, October 07, 2014 > 09:20:30
Online grocery sales are expected to reach between $80 billion and $123 billion by 2023, according to statistics released by Steve Bishop of Brick Meets Click during a webinar by The Food Institute. That means online sales will go from about 4 percent of the market to totaling between 11 and 17 percent of the total grocery market.
This year, online grocery sales will total about $27 billion. "The question and opportunity is who will capture the growing online sales," Bishop said in the "Get In On The Growth of Online Shopping" presentation. "Will the in-store lost sales be recaptured and offset by your online channel or lost to the competition? It's a good time to step up your online game."
The presentation noted the strong presence of Amazon in the growing marketplace. Already, Amazon reaches 62 million grocery shoppers a month, and 52 percent of all shoppers who have bought canned or packaged goods online.
A recent study by JLL called "Out with the old, in with the new: Why the grocery landscape is shifting" agreed that e-commerce is slowly gaining a greater share of grocery dollars. The study predicts that from 2013 to 2018, the growth in e-commerce grocery revenue is projected to be 57.4 percent, which amounts to about 2.5 percent of the overall market in 2018.
There are experts that believe the grocery delivery platform needs tweaking before it can ultimately be a true success. Some changes include a drop in delivery fees, a focus on bundling and an automatic replenishment system.
In addition, the JLL study does warn that while e-commerce is growing, so are other sectors of the grocery market. By 2018, traditional grocery dollars will account for only about 37.2 percent of the market share, and a majority of consumers will split their supermarket funds between fresh format and limited assortments stores, supercenters and e-commerce.
Some traditional supermarkets are undergoing changes to try and prevent losing shoppers. For instance, Kroger (NYSE:KR) recently introduced the test of a click-and-collect service at its Liberty Township Marketplace in Ohio.