Study: Online food shopping set to explode

Within the next decade, online food shopping will reach maturation in the U.S., far faster than other industries that have come online before.



At least that’s according to the “Digitally Engaged Food Shopper,” a report from the Food Marketing Institute (FMI) and Nielsen that takes a comprehensive look into the behaviors, motivations and expectations of the digitally-engaged food shopper.



The share of online grocery spending could reach 20% by 2025, representing $100 billion in annual consumer sales, the study projected. (The sales are focused on food, beverages and CPG products, specifically.) To put that into context, that is the equivalent of 3,900 grocery stores based on store volume.



Currently, 23% of American households are buying food online today, and this upward trend will continue. Of those that will buy online, 60% expect to spend over a quarter of their food dollars online in 10 years, data revealed.



“The grocery business truly is at a digital tipping point, where every aspect of the shopper’s journey will soon be influenced by digital, and increasingly enabled by digital platforms,” said Chris Morley, president of U.S. Buy at Nielsen.



As consumers continue to transition their grocery spending online, a significant number of brick-and-mortar categories that currently represent 40% of center store volume, will migrate to the online shopping experience, the report said.



“The need for retailers and manufacturers to know the differences around how consumers shop online versus in-store is greater than ever before,” Morley said. “Analytics will be key for retailers and manufacturers to understand the digitally engaged food shopper on a deeper level. Beyond unified insights that connect the dots across consumer interaction and platforms, the winning strategy will turn metrics into action steps towards effective digital engagement.”