Grocery Delivery - United States | Statista Market Forecast

The Grocery Delivery market in the United States is anticipated to achieve a revenue of US$257.50bn by 2024.
This projection indicates a steady growth rate (CAGR 2024-2029) of 12.07%, resulting in a market volume of US$455.20bn by 2029.
Furthermore, the Retail Delivery market is expected to reach a market volume of US$195.40bn in 2024.
In a global perspective, China is expected to generate the highest revenue in the Grocery Delivery market, reaching US$266.00bn in 2024.
Moreover, the average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$1.86k in 2024.
As for the number of users, it is estimated to reach 180.3m users by 2029.
Additionally, the user penetration in the Grocery Delivery market is predicted to be 40.5% in 2024.
These numbers serve as a testament to the growth and potential of the Grocery Delivery market in the United States.
The COVID-19 pandemic has significantly increased the demand for grocery delivery services in the United States, as consumers seek safer and more convenient ways to access essential goods.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

The demand for grocery delivery in the United States has been on the rise in recent years due to several factors.

Customer preferences: One of the main reasons for the growth in the grocery delivery market is the convenience it offers to consumers. With busy work schedules and the desire for contactless delivery during the pandemic, many consumers have turned to online grocery shopping and delivery services. Additionally, the ability to compare prices and products from multiple stores at once has also contributed to the popularity of grocery delivery.

Trends in the market: The grocery delivery market in the United States has become increasingly competitive with the entry of new players such as Instacart, Amazon Fresh, and Walmart Grocery. These companies have been expanding their services to more areas and offering additional features such as same-day delivery and subscription services. Another trend in the market is the increasing use of technology such as artificial intelligence and machine learning to optimize delivery routes and improve the overall customer experience.

Local special circumstances: The United States is a large and diverse country with varying levels of access to grocery stores and delivery services. In urban areas, where there is a higher demand for delivery services, the market is more competitive and there are more options available to consumers. However, in rural areas, there may be limited options for grocery delivery, which can create challenges for those who are unable to travel to a physical store.

Underlying macroeconomic factors: The COVID-19 pandemic has had a significant impact on the grocery delivery market in the United States, accelerating the shift towards online shopping and delivery services. Additionally, the rise of e-commerce and the increasing use of technology in the retail industry has also contributed to the growth of the grocery delivery market. The overall economic growth and consumer spending in the United States have also played a role in the expansion of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.