We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Online grocery sector cooks up fast growth as Amazon and Walmart fight for top rank
Forward Thinking

Online grocery sector cooks up fast growth as Amazon and Walmart fight for top rank

September 3, 2019
Supply Chain Quarterly Staff
No Comments

The online grocery sector is on track for steep sales growth between 2019 and 2024, driven by the expansion of fulfillment options and online assortment being offered by industry leaders Amazon.com Inc. and Walmart Inc., a new study says.

Store-based sales will continue to account for the majority of worldwide "edible grocery" sales over that period, but online sales are poised to grow much faster, according to London-based e-commerce analysis company Edge by Ascential.

Online grocery sales currently total just 3.25% of the global grocery sector, or $91 billion of the $2.8 trillion annual sales of the food & beverage category; ambient groceries, fresh groceries, carbonated drinks, fruit drinks, water, hot beverages, beers, wines and spirits.

However, grocers are investing in rapid digital transformation that could drive a compound annual growth rate (CAGR) of 13% through 2024, for a total of $162 billion by the end of the forecast period. The report did not cite the growth rate for brick and mortar-based grocery sales.

The report meshes with recent reports that the growth of online grocery sales is already pushing hot demand for cold-storage warehouses throughout the U.S. And to handle final-mile grocery delivery, automated fulfillment vendors such as Cleveron AS, Takeoff Technologies, and Ocado Group plc are developing refrigerated, robotic parcel lockers and super-dense, urban DCs.

The frantic pace of growth in the sector is being whipped up by a race for global grocery supremacy between Amazon and Walmart, which are forecast to generate e-commerce grocery sales of $15 billion and $14 billion, respectively, by 2024. Those figures will be more than twice as high as their nearest rival, Costco, Edge by Ascential said.

Although driven by competition, the companies are not simply throwing money at the problem, but are seeking to curb their investment in the complex supply chains that come with delivery services, even as they strive to continuously attract shoppers to physical stores.

To hit both goals at once, many retailers are investing in fast, store-based fulfillment or are teaming up with third parties for improved last-mile logistics, said the Edge by Ascential report. Thanks to that rising profile, fulfillment intermediaries are becoming influencers for product discovery and brand selection, and are enabling e-commerce operations for low-cost formats such as discounters, which would otherwise not sell groceries online.

"We're going to see a major shift to online and omnichannel over the next few years with edible grocery," Violetta Volovich, associate analyst and report author for Edge by Ascential, said in a release. "The barriers to adoption and growth in this sector are coming down, and retailers are investing heavily in technology, supply chain and partnerships that will make for an easy, seamless customer experience."

Online sales are poised to grow much faster as leading #retailers continue to prioritize #ecommerce in the edible grocery categoryhttps://t.co/QUDHhuwITI #winwithdata pic.twitter.com/4598Q60TVm

— Edge by Ascential (@EdgeAscential) September 3, 2019
Global Strategy
  • Related Articles

    Cold Chain Technology Verifies Food Safety As Online Grocery and Meal Kits Experience Record Growth

    Digital strategies, sustainability, securing the workforce rank as top issues

    Survey: online consumers are increasingly willing to pay for fast fulfillment

Recent Articles by Supply Chain Quarterly Staff

APM Terminals to add capacity at Port of Mobile

Cargo volume down in Oakland

Safety experts to headline National Forklift Safety Day 2022 program on June 14

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing