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Millennials drive US online grocery growth

Shopping basket with fresh food and smartphone. Grocery supermarket, food and eats online buying and delivery concept. 3d illustration

online groceryThe online grocery retail market in the US is predicted to reach US$26.87 billion by 2025, helped by increasing adoption of advanced technology, high-speed Internet access, and online availability of products, according to the latest research from Hexa.

More and more people are choosing to buy their groceries online with millennials driving market growth as they favour more convenient options. Most millennials are also tech-savvy and prefer a hassle-free check out experience online. Weekly discounts and offers are another big pull for this category.

Companies are striving to offer innovative packaging and marketing strategies to attract millennials to spend more on online grocery products. Hexa says that retailers are coupling durability with design to attract a large customer base. The availability of advanced packaging solutions is likely to drive growth.

The rise in popularity of organic and natural foods has spurred the promotion of local produce among retailers. Household and pet care products are also popular and expected to contribute significantly to the growth of the online grocery retailing market.

Amazon is a leading player in the online grocery sector with its popular subsidiary AmazonFresh, followed by Peapod. Most retailers are opting for mergers and acquisitions as a key growth strategy.

Innovative concepts such as personal shoppers and Amazon Go stores are also improving the payment and checkout experience for customers. Revolutionary and low cost online shopping experiences are expected to impact industry growth.

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