Report Overview

Convenience, busy lifestyles, smartphone reliance, wide product range, flexible payment options, and pandemic lockdowns are expected to drive United States Online Grocery Market during the forecast period between 2025 and 2031.

United States Online Grocery Market – Industry Trends & Forecast Report, 2031

United States Online Grocery Market size was estimated at USD 162.82 billion in 2024. During the forecast period between 2025 and 2031, United States Online Grocery Market size is projected to grow at a CAGR of 21.30% reaching a value of USD 629.1 billion by 2031. The driving factors of United States Online Grocery Market include the convenience and time-saving benefits it offers to busy consumers. The increasing penetration of smartphones and high-speed internet has facilitated easy access to online grocery platforms. A wide range of product selections, flexible payment options, and personalized shopping experiences have further boosted the market's growth. Additionally, the COVID-19 pandemic significantly accelerated the adoption of online grocery shopping, as consumers sought safe and contactless purchasing methods.

Online Grocery – Overview

Online grocery shopping enables consumers to purchase food and household items through digital platforms, offering convenience and time-saving benefits. It eliminates the need to visit physical stores, provide a wide range of products, flexible payment options, and personalized shopping experiences. The COVID-19 pandemic and resultant lockdowns accelerated its adoption, as consumers sought safe, contactless purchasing methods. The further deepening penetration of smartphones and high-speed internet, along with competitive pricing and discounts, further boosts the popularity of online grocery shopping.

United States Online Grocery Market

Growth Drivers

Convenience and Busy Lifestyles

United States Online Grocery Market thrives on the convenience it offers to consumers with hectic schedules. Busy lifestyles drive the demand for time-saving solutions, making online grocery shopping an attractive option. Consumers can easily browse, order, and receive groceries without leaving their homes. The flexibility of delivery times and the ability to shop anytime further enhance the appeal. This convenience factor significantly contributes to the growth of the Online Grocery Market in United States.

Challenges

High Delivery and Storage Costs

United States Online Grocery Market faces significant challenges due to high delivery and storage costs. These expenses impact profit margins and make it difficult for companies to offer competitive pricing. The need for specialized storage facilities to maintain product quality, along with the logistics of timely delivery, adds to the overall costs. Therefore, managing these expenses while ensuring customer satisfaction remains a critical restraint for the growth of United States Online Grocery Market.

Impact of Escalating Geopolitical Tensions on United States Online Grocery Market

Intensifying geopolitical tensions with trading partners could adversely affect the growth of United States Online Grocery Market by disrupting supply chains and increasing costs. Trade conflicts and diplomatic standoffs lead to tariffs and export controls, affecting the availability of imported goods. This results in higher prices for consumers and challenges in maintaining inventory levels. Additionally, geopolitical tensions create uncertainty in global markets, influencing pricing and stability. The reliance on foreign suppliers for critical products further exacerbates these issues, making it essential for the market to adapt and seek alternative sources to ensure a steady supply of goods.

United States Online Grocery Market

Segmental Coverage

United States Online Grocery Market – By Product Type

By product type, United States Online Grocery Market is divided into Vegetables & Fruits, Dairy Products, Staples & Cooking Essentials, Snacks, Meat & Seafood, and other product types segments. The staples & cooking essentials segment holds the largest share of United States Online Grocery Market by product type. The segment encompasses essential items, such as grains, flour, oils, and spices, which are fundamental to daily cooking routines. The consistent demand for these products, driven by their necessity in everyday meal preparation, contributes significantly to their dominance in the online grocery sector. As consumers increasingly turn to online platforms for convenient access to these essentials, this segment continues to lead in market share.

United States Online Grocery Market – By Business Model

Based on business model, United States Online Grocery Market is divided into Pure Marketplace, Hybrid Marketplace, and other business models segments. The hybrid marketplace model stands out as the largest business model in United States Online Grocery Market. The model combines direct sales from retailers with third-party sellers, offering consumers a diverse range of products and services. The hybrid approach leverages established retail infrastructures alongside independent vendors, enhancing product variety and availability. The integration has been pivotal in meeting the growing consumer demand for convenient and comprehensive online grocery shopping experiences. The flexibility and scalability of the hybrid model have positioned it as a dominant force in the market, catering to a wide array of consumer preferences.

United States Online Grocery Market – By Platform

On the basis of platform, United States Online Grocery Market is bifurcated into Web-based and App-based segments. The app-based segment accounts for a larger market share in United States Online Grocery Market, due to the increasing reliance on smartphones and mobile applications for convenient shopping experiences. Consumers prefer app-based platforms for their user-friendly interfaces, personalized recommendations, and seamless payment options. The flexibility to shop anytime and anywhere, along with real-time order tracking, further boosts the popularity of app-based grocery shopping. Therefore, the app-based segment holds a significant market share in United States Online Grocery Market by platform.

United States Online Grocery Market – By Purchase Type

United States Online Grocery Market by purchase type is divided into One-Time and Subscription segments. The subscription model holds a larger share in United States Online Grocery Market by purchase type. This preference is driven by consumers valuing the convenience of automated, regular deliveries of essential items, often accompanied by benefits like discounted prices and free delivery. In contrast, the one-time purchase segment appeals to those seeking flexibility without commitment to recurring orders.

Competitive Landscape

Major companies operating in United States Online Grocery Market include Walmart, The Kroger Co., Target Brands, Inc., Amazon.com, Inc., Albertsons Companies Inc., Fresh Direct (Ahold Delhaize), Costco Wholesale Corporation, Instacart, Aldi, Lidl, and Whole Foods Market. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type 

• Vegetables & Fruits

• Dairy Products

• Staples & Cooking Essentials

• Snacks

• Meat & Seafood

• Others

By Business Model

• Pure Marketplace

• Hybrid Marketplace

• Others

By Platform

• Web-based

• App-based

By Purchase Type

• One-Time

• Subscription