Ecommerce disrupting the US grocery industry at last?

Thursday 30 October 2014 13:52 CET | News

Food and beverage - said to be the largest retail category in the US by a wide margin, registering USD 600 billion a year in sales – is also identified as the category that has been disrupted by ecommerce to the lowest degree, according to an article, citing a recent study.

These are the takeaways from a new study conducted by BI Intelligence, a research service from Business Inside, which also reveals that presently, less than 1% of food and beverage sales currently occur online. The report mentions that grocery business has posed many challenges to ecommerce companies, ranging from consumer reluctance to complicated and expensive logistics, points out.

However, in spite of such obstacles, new startups that focus on concierge shopping and subscription prepared meals are innovating on the online grocery model and provide services that really make a difference, as compared to traditional supermarket shopping.

The research also identifies some advantages to online grocery shopping, including convenience and a large range of products. Only 15% of US adults have purchased general food items online, but 25% said they have bought specialty food and beverages online, which are hard to find elsewhere. Companies like Amazon, eBay and Google have started to offer and promote same-day delivery services. As consumers get used to the convenience of ordering something online and receiving it the same day, grocery ecommerce may benefit too.

The same source indicates that between 2013 and 2018, online grocery sales will grow at a CAGR of 21.1%, reaching almost USD 18 billion by the end of the forecast period. For comparison, offline grocery sales will jump by 3.1% annually during the above-mentioned period.

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Keywords: ecommerce, grocery industry, disruptive innovation, BI Intelligence, concierge shopping, subscription prepared meals
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce