Overview

Fresh start: Rising consumer income and broadband connections will expand the industry

The Online Grocery Sales industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$13bn
Annual Growth
12-17
10.1%
Annual Growth
17-22
Profit
Employment
39,527
Business
2,819

Industry Threats & Opportunities

  • Declining unemployment and increased internet usage will drive revenue
  • Online grocery retailers adopt a number of strategies to cope with high distribution costs
  • A number of big-name tech companies are offering same-day delivery services for food

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    Industry Analysis & Industry Trends

    While revenue for operators in the Online Grocery Sales industry fell during the recession, the industry's overall performance was not severely marred over the period. Americans' affinity for the internet has driven industry growth. Broadband connections have increased, and the number of mobile internet connections skyrocketed, reinforcing demand for online retailing services. Looking ahead, the next five years promise strong growth for the Online Grocery Sales industry. Driven by declining unemployment and increased internet usage, industry revenue is forecast to rise substantially...

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    Industry Report - Industry Analysis Chapter

    The Online Grocery Sales industry benefited from the spread of the internet and wireless and mobile devices over the past five years. The internet offers users easy access to a variety of products, the ability to make quick price comparisons and the convenience of shopping from home. These characteristics helped internet sales skyrocket over the past five years. Additionally, per capita disposable income slowly recovered, allowing consumers to spend more money at online grocery stores. Industry revenue has grown each year since 2012, and profit margins have improved as shoppers returned to buying regular-priced goods after shopping exclusively for deals. Revenue grew at an aggressive average annual rate of 10.1% during the five years to 2017; online groceries now account for about 2.0% o..

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    Additional Insights for the Online Grocery Sales Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Online Grocery Sales Industry are

  • Ability to control stock on hand
  • Having a loyal customer base
  • Company's website is user-friendly
  • IBISWorld analysts also discuss how external factors such as Number of mobile internet connections and Per capita disposable income in the Online Grocery Sales industry impact industry performance..

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    Industry Products

    What is the Online Grocery Sales Industry?

    Operators in this industry sell grocery items through online channels. The industry comprises companies that are based online and those that have both a physical presence and also sell food products on the internet.

    Industry Products
    Meat, fish, poultry and other deli items
    Fruits and vegetables
    Dairy products
    Beverages (including alcohol)
    Frozen foods
    Delivery charges
    Candy and prepackaged snacks
    Other foods
    Industry Activities
    Selling canned goods
    Selling dry goods
    Selling frozen goods
    Selling produce

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of mobile internet connections
  • Per capita disposable income
  • External competition
  • Agricultural price index

  • Current Performance
  • Low penetration
  • Business models
  • Chart: Revenue Growth

  • Industry Outlook
  • New industry entrants
  • Penetration increases
  • Table: Online Grocery Sales Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Grocery Sales Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Confectionery Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling
  • Grocery Wholesaling
  • Meat, Beef & Poultry Processing

  • Products & Services
  • Other foods
  • Frozen foods
  • Candy and prepackaged snacks
  • Beverages (including alcohol)
  • Meat, fish, poultry and other deli items
  • Dairy products
  • Fruits and vegetables
  • Delivery charges
  • Chart: Online Grocery Sales Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 55 and older
  • Consumers aged 25 to 34
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers ages 24 and younger
  • Chart: Major Market Segmentation for the Online Grocery Sales Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Online Grocery Sales

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Grocery Sales Industry

  • Industry Globalization
    Major Companies
    PeaPod
  • Table: PeaPod - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Online Grocery Sales Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Online Grocery Sales Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of broadband connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Brick-And-Mortar
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Smartphone
  • A mobile phone that offers advanced PC-like capabilities.
  • Tablet
  • A complete computer contained entirely on a flat, touch screen device.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Online Grocery Sales:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Online Grocery Sales market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Online Grocery Sales, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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