Executive Summary

The pandemic caused digital grocery sales to skyrocket. As the market matures, key players are vying for dominance, which is driving trends like click and collect and partnerships with third-party delivery services.

How big is the digital grocery market, and how big will it become?

US digital grocery sales grew 63.9% year over year (YoY) in 2020 and will grow another 12.3% this year, reaching $122.39 billion. Sales will nearly double by 2025, reaching $243.67 billion.

How many digital grocery buyers are there in the US?

This year, 142.9 million consumers will make at least one digital grocery purchase, amounting to 51.5% of the US population. However, after digital grocery buyers grew 42.6% YoY in 2020, annual growth will be tempered going forward (8.6% in 2021, 4.1% in 2022, and 2.8% in 2023).

Who are the key players in digital grocery?

Walmart Inc. commands the leading share of digital grocery sales in the US with 28.9% market share this year, followed by Amazon (23.8%), The Kroger Co. (12.3%), Target (4.9%), and Albertsons Cos. (4.9%).

What about Instacart and other delivery services?

Delivery through third-party intermediaries will make up 28.8% of digital grocery sales in 2021. Instacart is the dominant player with 73.8% of third-party intermediary grocery sales and will generate $26.07 billion in sales this year.

How popular is click and collect for grocery ecommerce?

Click and collect will make up 34.9% of US digital grocery sales this year, but the majority of digital sales are fulfilled via delivery. Click-and-collect sales will amount to more than 40% of digital grocery sales by 2025.

WHAT’S IN THIS REPORT? Our digital grocery sales and shoppers forecast through 2025, outlining the key players, emerging trends, and implications for the rapidly evolving market.

KEY STAT: US digital grocery sales grew 63.9% in 2020 and will grow another 12.3% this year, reaching $122.39 billion. Sales will nearly double by 2025, reaching $243.67 billion.