One of the largest grocery reports highlights need for U.S. grocers to improve online experiences and growth opportunity for quick delivery brands
BERLIN and NEW YORK, 8 December 2021 – Spryker Systems, the fastest-growing enterprise digital commerce platform for B2B, B2C, Enterprise Marketplaces and Unified Commerce, has today launched its U.S. Online Grocery Report 2022. The research finds that almost half (47%) of Americans buy at least some of their groceries online. The research, conducted in partnership with Spryker by market research firm Appinio, surveyed 2,500 consumers from across the U.S. on their experiences and opinions of grocery shopping.
The research revealed that big box retailers have the edge when it comes to consumers buying online, with 77% of U.S. consumers choosing to buy from retailers such as Costco, Walmart or Kroger. However, brand recognition is high when it comes to quick commerce providers. DoorDash was one of the most recognized e-grocery brands by 81% of U.S. consumers, followed by Grubhub (73%), Instacart (62%) and Postmates (62%), highlighting that no one supplier dominates the market.
The research also found U.S. consumers are unlikely to shop online for items when they need them at short notice – such as a missing ingredient for something they’ve planned to cook – with only 13% of consumers choosing to do so online. This indicates there is considerable opportunity for quick commerce providers to close this gap, given they would be uniquely placed to provide groceries on short notice and in smaller quantities.
“What’s clear is that the market is already big and will only get bigger when it comes to online grocery shopping in the U.S. Arguably, the boost to online grocery shopping is going to flatten out and you won’t be able to acquire customers by ‘just’ being online. It’s time for retailers to start competing on experience, and there isn’t a clear leader,” said Boris Lokschin, Co-Founder and CEO of Spryker. “U.S. retailers would be wise to look at the rise in online grocery shopping in other countries because there is a huge opportunity and appetite for further growth. Retailers that choose to move now will give themselves an advantage as more consumers look to shop online.”
Experience reigns supreme
7 in 10 online shoppers said that the shopping experience and ease of use were key factors when choosing an online grocery provider. The experience is especially important given the main obstacle for shopping online was not being able to see and touch items before purchasing. Improvements in user interfaces will entice more shoppers online, such as better integration between on and offline commerce as well as opening up new innovative channels like voice, VR/AR, IoT, and smart devices.
Boris Lokschin commented, “Given that the report findings show that almost half (45%) of Americans don’t like shopping at all for groceries, it’s not surprising to see a growing number intending to do it online. It’s up to retailers to capitalize on this demand by offering innovative and engaging online experiences. Those that don’t will find themselves being surpassed by ‘big tech’ companies like Amazon who are more prepared to invest in online technologies as well as quick commerce upstarts that outpace traditional retailers on speed and experience.”
Impact of the pandemic
One of the main drivers for increasing online grocery shopping is personal safety; 35% of respondents cited safety as a key reason for choosing online over brick-and-mortar stores. However, convenience still dwarfs other drivers, with almost two thirds (59%) reporting this as the reason for choosing to shop online. With the pandemic as one of the key triggers for consumers choosing to buy online, there is no indication in the data that consumers will go back to pre-pandemic figures. In line with this, more than a fifth (21%) of Americans say they expect to mostly or exclusively shop for groceries online within two years.
Room for growth in the U.S.
A similar study conducted by Spryker in Germany found that only 35% of those ordering groceries did so online – with 12% more people doing so in the U.S. for a total of 47%, showing that the U.S. is embracing online grocery shopping more than other regions. 10% of Germans exclusively shop online compared to 15% in the U.S. This might be partially explained by attitudes towards grocery shopping in general, 45% of Americans dislike grocery shopping while this is only true of 35% of Germans – this could indicate that for those that don’t like grocery shopping, online is a more convenient solution.
You can access the U.S. Online Grocery Report 2022 here: https://www.efoodinsights.com
The U.S. Online Grocery Report 2022 is based on a study run by Appinio and digital commerce platform provider Spryker in September 2021. It contains the most current data set on the use, brand perception and potential of online grocery shopping in the U.S. In a nationwide representative survey (based on age, gender and census regions), Appinio asked 2,500 participants about their experiences and opinions of grocery shopping, online delivery, and ready-made-food options. Respondents ranged between 16 and 65 years old and lived in the U.S. at the time of the survey.
Hamburg-based Appinio is the global market research platform which enables companies to source thousands of opinions from specific target audiences worldwide – in just a few minutes. For the first time, everyone can validate decisions and ideas in real-time with representative results from consumers. As the fastest solution for market research, Appinio delivers feedback from 90+ markets. More than 1000 companies from all industries use Appinio’s comprehensive platform to become more agile and customer-centric. Customers include VW, Unilever, Netflix, Gorillas, Bertelsmann, Warner Brothers, Samsung, Jägermeister, Red Bull and About You as well as all major agencies and management consultancies. Appinio has received several awards, including the Top European Business Startup at the Pioneers Festival, the Best of Mobile and the Best of Hamburg Award. Jonathan Kurfess, Founder and CEO of Appinio, belongs to Forbes 30 under 30 in Europe 2020.
Spryker Systems GmbH is a privately held technology company headquartered in Berlin, Germany and New York, USA. Founded in 2014, Spryker enables companies to build sophisticated transactional business models in unified commerce including B2B, B2C, and Enterprise Marketplaces. Spryker is the most modern, fully composable platform-as-a-service (PaaS) solution with headless & API-based architecture that is cloud and enterprise-ready and loved by developers and business users worldwide. Spryker customers extend their sales reach and grow revenue with a system that allows them to increase operational efficiency, lower the total cost of ownership, expand to new markets and business models faster than ever before: Spryker solutions have empowered 150+ companies to manage transactions in more than 200 countries worldwide and is trusted by brands such as Aldi, Siemens, Hilti, and Ricoh. Gartner® recognized Spryker as a Visionary in the 2021 Magic Quadrant™ for Digital Commerce, just one year after it first appeared (2020), and has also been named as a major player in B2B e-Commerce by IDC. Finally, it is the only commerce platform to provide full B2B, B2C, D2C, and Marketplace capabilities out of one stack. Find out more at https://spryker.com