Online Grocery Sales in the US Industry Market Research Report from IBISWorld Has Been Updated

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Economic and lifestyle factors have driven consumers toward online grocery shopping, encouraging more companies to enter the industry. For these reasons, industry research firm IBISWorld has updated a report on the Online Grocery Sales industry in its growing industry report collection.

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Sensing heightened demand for internet-based delivery services, major companies like Amazon and Walmart are scaling up their operations.

While revenue for operators in the Online Grocery Sales industry fell during the recession, the industry's overall performance was not severely marred over the period. Over the five years to 2014, increased internet usage among Americans has driven robust growth for this industry, and revenue for online grocers is expected to continue its surge in 2014 as more companies enter the market to cater to increasing demand for internet retailing services.

Industry revenue declined in 2009 as per capita disposable income weakened and shoppers opted for lower-priced items. Some consumers even opted out of internet grocery shopping altogether, in order to avoid associated delivery charges. Nevertheless, growing incomes, falling unemployment and rising food prices have helped industry revenue and profit margins recover. According to IBISWorld Industry Analyst Will McKitterick, “Sensing heightened demand for internet-based delivery services, major companies like Amazon and Walmart are scaling up their operations. Meanwhile, a new group of highly focused online grocers, like Relay Foods, Door-to-Door Organics and others, are targeting niche markets across the country.” Companies have expanded over the past five years, building up their infrastructure to service new territories across the country. In turn, the number of industry establishments increased rapidly during the past five years

Growth of the Online Grocery Sales industry is expected to slow only slightly in the next five years, as increased consumer spending and ever-expanding internet access position industry operators for strong gains. “Rising employment will limit many consumers' leisure time, making online grocery options increasingly attractive,” says McKitterick. “Moreover, growing incomes will stimulate demand by making industry services more affordable.” However, larger competitors, such as AmazonFresh, will help drive down margins in an attempt to crowd out their competition, lowering the average industry profit margin.

For more information, visit IBISWorld’s Online Grocery Sales in the US industry report page.

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IBISWorld industry Report Key Topics

Operators in this industry sell grocery items through online channels. The industry comprises companies that are based online and those that have both a physical presence and also sell food products on the internet.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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