New Report Shows Online Grocery Pickup Is About To Dominate The Game

Whether you enjoy it or dread it, grocery shopping is something most of us have to do. As the internet started becoming an essential aspect of our lives, grocery retailers began to capitalize on the idea of grocery shopping right from the comfort of our homes.

The first online grocery retailer was HomeGrocer.com, which first hit the web in 1997 (via OneSpace). It was proven successful as sales reached $1 million by 2000. At the time, the online grocery space seemed lucrative, and competitors started to pop up. According to a 2002 New York Times article, traditional supermarket chains also noticed. However, as fast the industry grew, it also quickly fell apart. Online grocery brands like HomeGrocer and Webvan promptly vanished. The companies overestimated customers' demands and profitability.

While the online grocery industry was a bust in the late 1990s and early 2000s, it looks to be having its heyday again. Fast forward to today, and the online grocery industry is expected to grow rapidly.

The COVID-19 pandemic altered the way people shop. Near the beginning, people rushed to supermarkets to panic buy and stockpile products, such as toilet paper and canned food, per a study published by the National Center for Biotechnology Information.

Other people began grocery shopping online for pickup or delivery straight to their door. According to Supermarket News, 40% of people used online pickup more than before the pandemic, and 46% used online delivery more.

A new U.S. eGrocery Market forecast suggests that online grocery shopping will grow significantly. According to the report, online grocery sales are expected to rise nearly 12% over the next five years. In comparison, in-store sales will increase at just 6.8%. However, online pickup is expected to be more popular than online delivery. Pickup sales are predicted to grow at approximately 14% in five years compared to a delivery sales rate of about 11%.

What's driving these numbers? The report's sponsors, Brick Meets Click and Mercatus, suggest that health concerns surrounding respiratory illnesses, such as the flu, contribute to high online grocery shopping demands. Whether you prefer browsing through the aisle or on your phone, online grocery shopping is here to stay.