eCommerce to Account for 20% of US Grocery Market by 2026

Julija A. Image
ByJulija A.
October 29,2021

According to a new Mercatus/Incisiv study, the e-commerce industry will account for 20% of the US grocery retail market in five years’ time. That’s several years earlier than pre-pandemic forecasts.

The study predicts that online sales will make up 9.5% of total US grocery sales of $1.097 trillion in 2021, which is a considerable growth compared to last year’s 8.1% of $1.137 trillion. The percentage is projected to grow further and reach 11.1% of overall grocery sales in 2022 before hitting 20.5% of $1.285 trillion in 2026. 

During pre-pandemic calculations, the online grocery industry was expected to account for 5.4% of the US grocery market in 2021 and then steadily grow to 6.8% in the following year, ending up at a modest 14.5% in 2026.

Among those surveyed in the latest study, 72% cited convenience as the number one reason for online grocery shopping. 45% said online shopping saved them time, while 28% pointed to COVID-related health concerns. 

However, as restrictions are relaxed and stores reopen, home deliveries are expected to decline.

“Home delivery is expected to shrink to lower than pre-pandemic levels as customers shift their preference to pick up,” Mercatus stated in a summary report of the survey. “Three-quarters of all online orders are expected to be fulfilled via stores, either in-store pickup or curbside pickup. Among suburban households, delivery adoption is 80% lower as compared to urban shoppers.”

The study released last week was initiated by the online grocery specialist Mercatus and conducted by the research firm Incisiv. While revealing the long-term impact of the pandemic on the behavior of grocery shoppers in the US, it also offered insight into the tendencies of e-commerce platforms and their trajectory. 

About the author

Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

More News

Square, a popular payments system, has recently launched its new product, Square KDS, a display system for restaurants that focus on delivery and don’t necessarily have a front-of-house or even a POS system. Square’s Kitchen Display System helps restaurants streamline their processes, connecting the front-of-house to the back-of-house and order fulfillment. Likewise, orders from delivery apps and the Square Online site are all sent directly to the kitchen via Square KDS. It has already replaced post-it notes in many restaurants due to its ease of use. Restaurant owners can also benefit from additional features, such as ticket timers, performance reports, and notifications that can be customized to meet the restaurants’ specific needs. It seems that Square has jumped to cater and adapt to the pandemic-related trend of delivery-only restaurants. These ghost kitchens and other businesses that don’t have a front-of-house can take advantage of Square’s technology. Originally released in November 2020 as part of the Square for Restaurants POS software package, Square KDS has now become available as a stand-alone product. Some other big names in the restaurant industry, such as Kitchen United, have focused on developing their own solutions to keep up with the new trends, but smaller businesses rarely have enough time and funds to do so, making solutions such as Square KDS even more valuable. Square’s new product is currently available as a standalone in the UK, US, Canada, Australia, and Ireland. Square is currently offering a special price for this new solution, standing at $10 per month per device until the end of 2021. Alternatively, users can get it if they opt for Square’s Plus plan, which costs $60 per month per location. Large businesses might also consider purchasing Square’s Premium plan, which can be tailored to a particular restaurant’s needs.
By Julija A. · May 28,2021
Check Point Software Technologies researchers gained access to the data of over 100 million Android users due to misconfigured cloud-based storage solutions. They published their findings on May 20, citing 23 highly sought-after mobile apps as dangerous for internal user data due to oversights in cloud-based-storage security configurations. Real-time databases, cloud-based storage, and notification managers were misconfigured, leaving both developers and users exposed. Both secret and access keys were embedded in the same service that stores personal data. The mishandling of these cloud-based solution services revealed personal information like passwords, email addresses, device location, private messages, user identifiers, and more. For example, Astro Guru - an astrology app downloaded more than 10 million times - exposed its users’ personal info and payment details due to unsecured syncing, which could have been avoided with appropriate identity theft protection. Similarly, Check Point’s researchers managed to acquire chat messages exchanged between drivers and passengers on the T’Leva taxi app. Over 50,000 users had their in-app correspondence leaked with a single request sent to the app’s real-time database. Users’ full names, locations, and phone numbers were also contained in the leak. The last example is a screen-recording and storing app called Screen Recorder; the app has over 10 million users. Its developers embedded access keys in the same database they used to store recordings, essentially offering them to anyone who decided to look. Cloud storage on mobile apps is a very convenient solution for developers. However, this widespread mishandling of configuration and implementation put both developer and user data at risk. Check Point Software researchers have found dozens of cases where developers tried to hide how they keep cloud service keys in their apps by providing a solution that doesn’t fix the issue. Researchers had contacted Google and app developers before they published their findings. However, only a few apps have evaluated their configuration since.
By Julija A. · May 28,2021
Goldman Sachs Chief Economist Jan Hatzius has recently said that a cryptocurrency intended to compete with the dollar is likely to be made at some point by the Federal Reserve. Crypto traders are not enthusiastic about this news, as it brings a level of regulation to the traditionally unregulated market. “The Fed is still in the research stage,” Hatzius explained for Yahoo Finance Live and added that there is an appetite for introducing a digital currency. However, he also says that the Fed needs to move cautiously to avoid undermining the current payment and financial system. “I think small steps are not likely to be very disruptive ,” Hatzius said. “Large steps could be disruptive. That’s why I think you need to move slowly, and gain a lot more experience before you ramp it up.” Crypto traders look unfavorably on the US government’s initial attempts to regulate Bitcoin. The same goes for China. Authorities in that country have already openly said that cracking down on Bitcoin mining and trading is necessary, so this news has a bitter taste for crypto traders around the world. Following the Chinese authorities’ announcement, Bitcoin plunged on Sunday, May 23, by more than 15%. At the moment of writing, it stood at $32,652, half its peak in April. Ether, too, initially shed 18% but recovered the following morning. Currently, both the Fed and the Treasury consider cryptocurrencies to be highly speculative assets. US Federal Reserve Chair Jerome Powell says that “to date, cryptocurrencies have not served as a convenient way to make payments, given, among other factors, their swings in value.” Considering Bitcoin’s volatility, many small businesses are likely better off opening checking accounts in banks than using this and other cryptocurrencies. Still, a new currency, coming from the Fed, shouldn’t pose any risk to the current financial system, according to Hatzius. He believes that its introduction could work, provided that the Fed takes its time to research the digital currencies and fit them into the current financial system.
By Julija A. · May 27,2021

Leave your comment

Your email address will not be published.


There are no comments yet