The recent studies show the trends in online shopping of groceries is likely to increase two folds in this year. This year has witnessed a 76% surge in online shopping for groceries. The current pandemic has attracted many consumers to online shopping in order to avoid crowded places and human contact. The e-grocery market in India has seen tremendous growth over the last several months. This is because many people have taken to organic Indian grocery online usa.
Some of the reports suggest the eGrocery market in the US alone could grow five folds over the next decade, where consumers are expected to spend upwards of $100 billion. This is a promising forecast. And, the same is expected to be witnessed all across the globe.
At present, only 14% of American households are buying groceries online. But, in the next year, this figure could jump up to 70 percent. This makes the current period as the best time to build grocery delivery platform
Due to the increasing consumer base for shopping online for groceries, many major retail brands in India like Zomato, JioMart and Swiggy have started selling groceries online. Some of the brands like Grofers, Big Basket, Amazon, etc. have also witnessed an increase of about 60% in the sale of groceries since the current pandemic.
The eGrocery store market analysis state that by the end of 2018, nearly 20 million new consumers will adopt online grocery shopping. About 85% would be willing to use at-home delivery while the rest would go for in-store pickup.
It is also said that the retailers providing an interactive website experience to their consumers will carry a competitive edge in the online grocery market. Numerous online grocery stores have received funding amounting to millions of dollars from VCs.
eGrocery is expected to be one of the fastest-growing sectors reaching US$ 84460 million by 2024. The leading players in the global grocery market are Walmart, Amazon, Kroger, FreshDirect, and Target have all started offering online grocery services to their customers. Every player has witnessed an increase in the customer satisfaction level in the past 10 years.
Factors Influencing the Growth of Online Sale of Groceries
There are a number of factors responsible for the growth of organic Indian grocery shopping online. Let us have an analysis of the some of these factors in the article below.
No geographical boundaries
Online grocery shopping is the most preferred choice these days. It offers delivery irrespective of the geographical boundaries. While serving a large geographical area requires a strong supply chain structure. However, non-requirement of a physical shop or store leaves the retailers a lot of monetary reserves to finance a strong supply chain arrangement. As a matter of fact, doorstep delivery with no hassle on the part of the consumers encourages the consumer to opt for online shopping over physical shopping.
Time-Efficiency
The flexibility that a given online website offers in terms of time plays a great role in influencing a set of consumers to go for online shopping. Due to the increasingly busy lives, consumers opt for options that provide flexibility and punctuality in terms of time. The conventional stores have limited opening hours which doesn’t provide convenience to consumers that lead a busy life. While the online stores provide both convenience and flexibility. The shopping hours are not limited and the consumer is at liberty to shop at any odd hour as per her/his convenience.
Free Delivery and Discounts
As a result of the enhanced competition and availability of a large number of shops in unorganised sectors, the online stores majorly adopt the policy of free delivery and offer substantial discounts. Timely and hassle less delivery attracts a large number of consumers.
Grocery websites that charge a minimum delivery cost irrespective of the cost of product bought are generally less preferred over websites that provide free deliveries. In India, websites generally offer free delivery over a certain price of orders in order to attract more and more consumers.
In the coming years, we will witness a reduced number of people in the offline stores as most of the shopping will move online. Improved delivery methods like drones and robust logistics will further add to the future of online grocery delivery services. This is the perfect time for anyone to start their own online venture by using a ready-to-launch solution.
The mobile app service provided by online grocery companies along with the rapid improvement in speed and availability of same-day delivery has made the customer experience better than ever. Grocery mobile apps have contributed to the overall grocery store sales. And, the estimated usage of such apps is expected to grow from 18 million in 2018 to 30.4 million in 2022 among US customers.
Future of Online Grocery Shopping is Promising
Grocery is the largest consumer segment by far in the Indian market, and Indians spend more than 50% of their monthly income on groceries.
The purchasing pattern of consumers has resulted in the growth of online groceries in the e-commerce landscape. Consumers are more prone to purchasing online from the comfort of their homes. Along with this, there is the added benefit of getting the purchases delivered to them. While online food and grocery start-ups like Big Basket have already braved the odds and emerged victorious in the past couple of years, bright prospects also await new investors and entrants in the post-Covid era.
Furthermore, the anxiety and fear created by the pandemic resulted in consumers becoming more concerned about their safety and the hygiene of food they consume. They resorted to the brands that they trust for safer delivery through sanitary methods. All the trustworthy brands responded by options like contact-less delivery, sealed food, safe handling, and packaging, etc.
If the population the size of urban India remains in a prolonged period of self-isolation and social distancing practices, the continued shift in consumer purchase will allow online groceries and supermarkets to vastly expand their customer base.