With a valuation of $100 billion, grocery e-commerce has become the most promising market in North America

A recent report from eMarketer predicts that online grocery sales will exceed $100 billion in 2021. For American consumers, online shopping has become a daily shopping habit, from first-time grocery e-commerce purchases to multiple online shopping trips.

According to eMarketer ’s report data , the online category has grown faster than expected in early 2020. Amid the pandemic , hundreds of millions of American consumers have become online grocery shoppers for the first time, according to the company ’s latest forecast for U.S. grocery sales .

Online grocery sales in the U.S. grew 54% last year to $95.82 million , accounting for 12.0% of total U.S. e-commerce sales and 7.4% of all grocery sales.

Looking ahead, e-commerce growth for groceries will slow as the rollout of vaccines allows consumers to return to physical stores . But some online grocery shopping habits will remain, and by 2021, consumers' online grocery shopping spending will exceed $100 billion for the first time .

According to eMarketer, online grocery sales will account for 11.2% of total U.S. grocery sales by 2023 .

“ The pandemic has prompted consumers to seek a safe and convenient way to get essential groceries, and many retailers have adapted to this demand by moving sales online , ” said Whitney Birdsall, senior forecasting analyst at eMarketer.

“With more stores offering curbside pickup and more features on grocery delivery apps, consumers now have a variety of options to order their groceries online. A large portion of consumers who first purchased groceries online during the pandemic now prefer this method of shopping due to convenience and safety . ”

Much of the growth in grocery e-commerce sales can be attributed to first-time consumers entering the market. Last year, the number of online grocery shoppers in the U.S. (those who made at least one purchase in a year) surged 42.6% to 131.6 million . eMarketer projects that by 2022, more than half of the U.S. population will be digital grocery shoppers .

“Once the pandemic crisis is largely alleviated through the widespread use of vaccines , many consumers seeking low prices will return to their pre- pandemic purchasing behavior, ” said Andrew Lipsman, principal analyst at eMarketer.

Other consumers are now accustomed to the process of buying groceries online. Many who have developed online shopping habits will continue that behavior. The continued growth of the digital grocery market will depend more on purchase frequency than on new buyers entering the space.

Increased per capita spending will also drive growth in online grocery sales . eMarketer estimates that annual spending per consumer will be $728 in 2020 and $818 in 2021. It is expected to exceed $1,000 by 2023 .

Grocery e-commerce

North America

Potential Market