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Kroger will see $15.85 billion in US grocery ecommerce sales this year, according to our forecast. Kroger announced it would bring its Kroger Precision Marketing (KPM) retail media network in-house in June, part of a growing trend of retailers maturing past partnership-based retail media networks. The self-service platform enhances ad automation and curation for advertisers.

Most US digital grocery shoppers (79.9%) bought from more than one platform in the last year. But Amazon Fresh did have a lower percentage of exclusive shoppers compared with industry leader Walmart, where 14.5% of digital grocery customers were exclusive. Amazon Fresh customers were more likely than all digital grocery shoppers to also buy groceries on Amazon鈥檚 core site.

Though just 18.6% of US digital grocery shoppers have used Amazon Fresh in the past year, per our survey, these shoppers are a potentially valuable audience to brands who want to encourage product discovery among consumers who shop frequently and try new products.

In 2023, we forecast Amazon鈥檚 grocery ecommerce sales will reach $36.41 billion, compared with Walmart Inc.鈥檚 $49.32 billion. Amazon鈥檚 share of total grocery ecommerce sales is declining, going from 23.5% in 2020 to 18.5% in 2024, per our forecast. Meanwhile, Walmart鈥檚 share is back on the rise after dipping a bit in 2021 and 2022, projected to hit 26.9% of total grocery ecommerce sales in 2024.

Our forecast expects DoorDash鈥檚 US grocery ecommerce sales to grow by 33.4% this year, handily outpacing Instacart鈥檚 12.8% growth鈥攁lthough it should be noted that the former鈥檚 grocery sales are roughly one-fifth the size of the latter鈥檚. The advertising angle: Of course, as with most retail initiatives these days, there is the potential upside to both companies鈥� advertising businesses.

Key stat: Over 52 weeks, grocery shoppers aged 55 to 64 made 50.5 trips, ages 65 to 74 made 46 trips, and shoppers 75 and older made less than 40 trips, according to an 84.51掳 survey. Why it matters: Boomers, often empty nesters with smaller households, don鈥檛 need to shop for groceries as frequently as millennials and Gen Z, who may have young families.

Grocery shoppers in search of convenience shift spending to online channels. Walmart, Amazon, Instacart make search enhancements. Uber takes on TaskRabbit.

The respondents were all primary or shared grocery shoppers for their household.

Grocery shoppers in search of convenience shift spending to online channels. US Digital Grocery 2024. Methodology: Data is from the December 2023 Incisiv, "2023 Digital Grocery: Year in Review" in partnership with Wynshop. 2.2 million US shopper orders were analyzed during January 1, 2022-November 30, 2023. Additionally, 1,493 US grocery executives were surveyed during the same period.

Grocery shoppers still cutting back even as inflation cooled in May. Loyalty programs struggle to balance deals and margins as inflation lingers. More Chart of the Day:. 6/30 - CTV gains on mobile. 6/29 - Beauty and the bucks. 6/28 - Corner the marketplace. 6/27 - Where Gen Z buys. 6/26 - The CTVerse.

Why it matters: Albertsons will account for 8.8% of US grocery sales and 2.7% of grocery ecommerce sales in 2024, according to our November 2023 forecast. That means the business has a massive audience when it comes to advertising. We expect to see more retail media networks partnering with ad tech companies to serve these large audiences this year. 2.

This year, Walmart Inc. will rake in $58.92 billion in US grocery ecommerce sales versus Target鈥檚 $8.10 billion, per our forecast. Meanwhile, Amazon鈥檚 massive array of products and speedy delivery time make it hard to compete with across multiple categories. Amazon鈥檚 click-to-door speed was 1.5 days as of June 2023, much faster than other retailers鈥� 5.2 days, per a September 2023 NielsenIQ analysis.

Grocery is set to become the largest US ecommerce category by 2026.

Although only 18.6% of US digital grocery shoppers have used Amazon Fresh in the past year, those customers are more likely to shop frequently and try new products. Reaching the right customers: Whether CPGs advertise on retail media networks (RMNs) is a question of quality over quantity.

Our forecasts expect the number of households with Walmart+ membership will grow 10.4% this year and its grocery ecommerce sales will soar 44.6% this year. Meanwhile, several other retailers are also making investments to grow their direct-to-consumer ecommerce grocery (and more) businesses.

A large part of this growth is driven by grocery and grocery ecommerce. The top 13 retail media networks used by brands (identified in a survey by the Association of National Advertisers) sell groceries and/or consumer packaged goods. According that survey, Dollar General is used by 38% of US marketers, making it the sixth most popular retail media network.

Price is the most important factor for US grocery shoppers to consider when picking a grocery store, according to 83% of consumers, per a January 2024 survey from Progressive Grocer. 30% of US digital shoppers are looking for discounts and coupons to help combat rising shopping costs, per a December 2023 survey from Intelligence Node in partnership with Dynata.

More than a third, 36%, of grocery shoppers have traded down to cheaper alternatives of the same products, such as store brands, per a new PYMNTS survey, and 47% have switched to retailers that offer better prices. Many CPG brands saw some declines in sales volume in the wake of the price increases. For example, Kraft Heinz鈥檚 volumes fell 5.3% YoY in Q1 and Procter & Gamble dipped 3%.

By 2026, 63.4% of total click-and-collect sales will be from grocery ecommerce. Listen to the full episode. This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Amazon isn鈥檛 the biggest player in grocery ecommerce鈥攖hat鈥檚 Walmart. Amazon and Walmart Connect are the top two US retail media networks, followed by Target, Kroger, and Instacart. Takeaway: Don鈥檛 put all your retail media ad dollars in Amazon鈥檚 basket. Diversify your retail media ad spend, and be discerning.

But grocery ecommerce still lags other product categories for a variety of reasons, including consumer desire to select fresh produce personally, the frequency of most household grocery shopping, and distribution challenges in meeting consumer needs for quick and accurate delivery. Grocery ecommerce at scale has arrived in Canada. Almost 1 in 10 grocery dollars spent in Canada will be online in 2023.

Most US adults want quick in-store and online grocery shopping experiences, according to November 2023 data from Kearney. However, when it comes to shopping for clothes and shoes, they prefer to browse a bit, particularly online.

鈥淸Walmart has the] largest customer base of physical store grocery shoppers. I just think that when it comes down to brass tacks, it鈥檚 that very simple advantage of just having a large customer base and a large brick-and-mortar footprint.鈥�. But other retailers are trying to cash in on the surge in click-and-collect buyers.

And consumers expect inflation will last well into 2024: 70% of grocery shoppers and 67% of retail customers expect significant price increases in the next 12 months, per PYMNTS. The bigger picture: Card volume growth may have been laggard in Q1, but that didn鈥檛 stop consumers from falling into record debt.

Grocery ecommerce penetration is now into double digits, but there are wide disparities among CPG categories. Those with high ecommerce penetration will be best suited to the D2C ecommerce opportunity. Pet products are ideal for D2C ecommerce. With 38.4% of sales coming via ecommerce this year, pet products have already seen a pronounced shift online.