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Online Grocery Sales in the US - Market Research Report (2014-2029)

Arielle Rose Arielle Rose New York, United States Last Updated: September 2024 NAICS OD5085

Revenue

$43.3bn

2024

$43.3bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

71,273

Businesses

5,497

Wages

$X.Xbn

Online Grocery Sales in the US industry analysis

Online grocery sales have surged as online shopping has shot up. The surge in the popularity of online shopping, along with an increase in per capita disposable income and consumer spending, contributed to significant revenue growth for the industry. Overall, industry revenue will climb at a CAGR of 16.3% over the five years to 2024 to reach an estimated $43.3 billion in 2024, including expected growth of 4.3% in 2024.

Trends and Insights

  • COVID-19 accelerated the popularity of online grocery shopping. Even as pandemic fears have subsided, consumers have continued to turn to online shopping because of the convenience.
  • Many consumers express concerns over the quality and freshness of the products offered online. This impacts online buying decisions, with some consumers still preferring to shop at brick-and-mortar locations for specific items like produce and other fresh foods.
  • Online grocers don't always establish operations following the distribution of the population. However, population density is an important factor in an operator's geographic location. Online grocery companies also choose their location with rental and transportation costs in mind.
  • Prices have become an important factor. Consumers can easily compare prices across platforms, so to mitigate this online grocery retailers offer customers various discounts, promotions, deals and club cards in addition to offering discounts on delivery charges.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 16.3 % over the past five years, to reach an estimated $43.3bn in 2024.

Trends and Insights

Consumers are driving the popularity of mobile grocery shopping due to their demand for convenience

  • The rise in mobile shopping continues to grow as more smartphones and internet access become available, making online grocery platforms more accessible and beneficial to consumers.
  • Additional trends and insights available with purchase
Online Grocery Sales in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Heightened familiarity will boost online grocery sale penetration

  • Internet traffic will continue to grow over the next five years, fueled by an increasing number of mobile connections and the deeper integration of the Internet into everyday life, which will support online grocery services.

Biggest companies in the Online Grocery Sales in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Walmart Inc.
12,169.0
510.6
4.2
Amazon.Com, Inc.
6,489.7
385.4
5.9
The Kroger Co.
4,887.1
112.2
2.3

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Online Grocery Sales in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Fresh and frozen meat, fish and seafood, Fruits and vegetables and Egg and dairy products. Fresh and frozen meat, fish and seafood is the largest segment of the Online Grocery Sales in the US.

Trends and Insights

Beverages are a popular component of online grocery sales

  • Beverages include alcoholic and nonalcoholic drinks, including soft drinks and fruit juices.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Online grocery companies sell grocery items through online channels, including those wholly based online as well as those with a physical presence that also sell food products on the internet.

What's included in this industry?

Fruit and vegetablesEggs and dairy productsBeverages Frozen foodsFresh and frozen meat Fish and seafoodDrugs and health products

Companies

Walmart Inc.Amazon.Com, Inc.The Kroger Co.

Purchase this report to view all 4 major companies in this industry.

Related Terms

SMARTPHONEBRICK-AND-MORTARTABLET

Industry Code

NAICS 2017

NAICS 45411 - Online Grocery Sales in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

COVID-19 accelerated the popularity of online grocery shopping. Even as pandemic fears have subsided, consumers have continued to turn to online shopping because of the conve...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Many consumers express concerns over the quality and freshness of the products offered online. This impacts online buying decisions, with some consumers still preferring to s...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Online grocers don't always establish operations following the distribution of the population. However, population density is an important factor in an operator's geographic ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Prices have become an important factor. Consumers can easily compare prices across platforms, so to mitigate this online grocery retailers offer customers various discounts, ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Walmart is the largest online grocery store service. The company dominates sales by leveraging its well-known brand and existing infrastructure.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Walmart Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Amazon.Com, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of The Kroger Co.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Walmart Inc., and factors influencing its performance in the industry
  • Description and key data for Amazon.Com, Inc., and factors influencing its performance in the industry
  • Description and key data for The Kroger Co., and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Online grocers do not receive any formal assistance from the federal or state governments. However, these grocers are indirectly assisted by industry associations like the Na...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Labor intensity makes wages a high expense. Wages represent more than a tenth of revenue since paid employees are needed to process orders, track inventory and deliver produc...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Online Grocery Sales in the US industry in United States in 2024?

The market size of the Online Grocery Sales in the US industry in United States is $43.3bn in 2024.

How many businesses are there in the Online Grocery Sales in the US industry in 2024?

There are 5,497 businesses in the Online Grocery Sales in the US industry in United States, which has grown at a CAGR of 16.9 % between 2019 and 2024.

Has the Online Grocery Sales in the US industry in United States grown or declined over the past 5 years?

The market size of the Online Grocery Sales in the US industry in United States has been growing at a CAGR of 16.3 % between 2019 and 2024.

What is the forecast growth of the Online Grocery Sales in the US industry in United States over the next 5 years?

Over the next five years, the Online Grocery Sales in the US industry in United States is expected to grow.

What are the biggest companies in the Online Grocery Sales in the US market in United States?

The biggest companies operating in the Online Grocery Sales market in United States are Walmart Inc., Amazon.Com, Inc. and The Kroger Co.

What does the Online Grocery Sales in the US in United States include?

Fruit and vegetables and Eggs and dairy products are part of the Online Grocery Sales in the US industry.

Which companies have the highest market share in the Online Grocery Sales in the US in United States?

The company holding the most market share in United States is Walmart Inc..

How competitive is the Online Grocery Sales in the US industry in United States?

The level of competition is high and increasing in the Online Grocery Sales in the US industry in United States.

Related Industries

Widen you competitive advantage with related industries

Competitors

  • Grocery Wholesaling in the US
  • Supermarkets & Grocery Stores in the US

Complementors

  • Soft Drink, Baked Goods & Other Grocery Wholesaling in the US
  • E-Commerce & Online Auctions in the US

International industries

  • Supermarkets & Grocery Stores in Canada
  • Supermarkets and Grocery Stores in Australia
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand
  • Supermarkets in the UK
  • Supermarkets in Ireland

View all industries in United States

Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

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