Amazon Continues to Disrupt
Amazon’s acquisition of Whole Foods in 2017 is starting to make sense with Amazon customers. In a recent Criticalmix study that evaluated the US online grocery consumer, the ordering of online Whole Food groceries is currently conducted by nearly 1 in 5 US adults via Amazon. In total, 28% of US consumers currently engage in online grocery shopping led by Millennials ages 25-34 (37%).
In the US, the online grocery sector is expected to grow. Nielsen in accordance with Food Marketing Institute (FMI) released findings showing that by 2022, $100 billion will be spent on US online groceries with up to 70% of consumers ordering online groceries regularly in the next 5 to 7 years.
Worldwide, future spending also looks appetizing, as Forrester projects 123% growth by 2022 and spending projected to reach $334 billion.
Shaken Not Stirred
Within the online grocery sector, different verticals are also beginning to grow into maturity, especially when it regards alcohol. According to new data from Slice Intelligence, online alcohol delivery revenue grew 32% in 2017, increasing at an average rate of 3 percent month-over-month. The interest in alcohol matches the Criticalmix findings as 62% of its respondents purchase beverages online more often than any other consumer packaged good. So why the uptick in online grocery interest? Convenience. However, for those who don’t regularly conduct online grocery shopping, their biggest reason not participating in digital groceries is their preference to select items in-person (67%).
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