Online grocery will swell to 21.5% of total U.S. grocery sales by 2025, more than doubling its current share of the overall grocery market, a study by grocery e-commerce specialist Mercatus and research firm Incisiv projects.

For 2020, online grocery’s percentage of the $1.04 trillion grocery market is pegged at 10.2%, or about $106 billion, up from 3.4%, or $34.54 billion, of the $1.02 trillion market in 2019, according to the study, titled “eGrocery’s New Reality: The Pandemic’s Lasting Impact on U.S. Grocery Shopping Behavior”. By 2025, online grocery’s dollar share stands to climb to $250.26 billion of the estimated $1.16 trillion overall grocery market.

Growth for online grocery skyrocketed amid the pandemic, with 43% of shoppers surveyed reporting that they shopped online in the last six months versus 24% two years ago. Post-pandemic, 90% of e-grocery customers are expected to continue shopping online, the study said.

(Source: Mercatus/Incisiv)

Driven by the COVID-19 crisis, U.S. household spending on consumer packaged goods swelled 19% in 2020 and remained elevated heading into 2021, according to new research from advertising efficacy specialist NCSolutions.

Although grocery spending growth fluctuated — sometimes sharply — on a month-to-month basis during 2020, year-over-year CPG spending gained by double digits in every month except January, NCSolutions’ purchase data showed.

(Source: NCSolutions)

Customer satisfaction with supermarkets rose as both shoppers and retailers responded to conditions under COVID, research from The Retail Feedback Group (RFG) shows.

In RFG’s Fall 2020 U.S. Online & In-Store Grocery Shopping Study, shoppers rated overall satisfaction of their latest supermarket trip at 4.23 on a scale of 1 to 5, up from 4.08 in the spring study.

Among in-store shoppers, the upswing in grocery customer satisfaction was led by higher favorability in variety/selection, which scored 4.25 on a five-point scale in October versus 4.00 in April. That was followed by value for the money (to 4.10 in October from 3.93 in April), checkout speed/efficiency (to 4.34 from 4.25), staff knowledge/helpfulness (to 4.24 from 4.16), quality and freshness (to 4.43 from 4.37), friendliness/attitude of staff (to 4.36 from 4.30), staff availability (to 4.18 from 4.12) and cleanliness (stayed the same at 4.41).

(Source: The Retail Feedback Group)

By the end of 2020, U.S. grocery shoppers had resumed stockpiling amid a resurgent COVID-19 pandemic, according to surveys from Shopkick and ACI Worldwide.

Of nearly 8,000 consumers polled nationwide Nov. 23 to 25, 48% report being more concerned about coronavirus than a month ago, rewards app provider Shopkick said. The increased worry about the virus, in turn, led 61% of respondents to stock up on groceries and other essential items, a sizable jump from 47% in a Shopkick survey during the first wave of COVID-19 in March.  Of the 39% of consumers who aren’t currently stockpiling essential items, 47% said they will do so if COVID-19 cases continue to proliferate. 

The top items being purchased in this second round of stockpiling included toilet paper (87%), food and water (85%), cleaning supplies (67%), hand sanitizer (61%), medicine and medical items (48%) and pet supplies (37%). 

(Photo courtesy of Walmart)

When it comes to brand choice, most U.S. grocery shoppers are opting for value during the coronavirus crisis, a survey from Inmar Intelligence showed.

Of 1,000 consumers surveyed in November, 61% reported switching purchase loyalty to less-expensive brands since the beginning of the COVID-19 pandemic, Winston-Salem, N.C.-based Inmar said.

Shoppers polled were clear that they won’t hesitate to try new products to save money, Inmar found. Over 70% of respondents said they have actively searched for new types of grocery products or brands during the pandemic, and 83% aim to buy these new products again. Grocery customers said cost (cited by 67%) and sales/coupons (51%) were the chief reasons they purchased the new items and brands.

Additionally, 80% of shoppers surveyed indicated they’re actively seeking grocery deals — including via coupons and promotions — while 92% think grocery brands should be doing more to bring savings to consumers.

(Source: Inmar)

Nearly nine out of 10 U.S. grocery shoppers (89%) now use a smartphone at the store, up from 67% in 2015, new research from CPG sales and marketing firm Acosta reveals. What’s more, 58% of consumers polled report being comfortable using digital and online tools to help with food shopping, compared with 42% in 2017 and 35% in 2015, according to Acosta’s “The Mobile-ization of Grocery” report.

“Smartphones have grown to become a huge part of daily life, so it’s only natural that retailers and shoppers are connecting this technology with the grocery buying experience,” Colin Stewart, executive vice president of business intelligence at Acosta, said in a statement. “We saw increased ‘mobile-ization’ numbers this year due to the COVID-19 pandemic. The shopping experience has significantly changed, and many consumers are limiting their trips to the grocery store and being as efficient as possible with their time in the store. To do this, they are looking to mobile solutions more and more.”

(Source: Acosta)

Sales of meat increased an unprecedented 34.6% during the COVID-19 pandemic and revealed changing consumer behaviors, according to the 2020 midyear Power of Meat study released by FMI –The Food Industry Association, the Foundation for Meat and Poultry Research and Education and the foundation for the North American Meat Institute (Meat Institute).

The survey found that as a result of the pandemic, 75% of consumers made changes in their meat purchasing behavior with at least half buying different brands (58%), cuts (51%) or types (50%) of meat.  Additionally, during the pandemic, consumers are now cooking more meals and need more variety (50%), cooking new recipes (37%) and experimenting with different cuts/kinds of meat (34%). Home-cooked dinners with meat jumped from 3.9 to 4.6 times per week, but meal planning is becoming more challenging, the report noted. 

(Source: FMI/Meat Institute)

In 2020, due to a COVID-spurred surge in frozen food purchasing, the category grew in both dollars (+21%) and units (+13.3%), with nearly all types of frozen foods seeing double-digit sales increases.

“The frozen food aisle has been a growth driver for retailers since 2016 with acceleration ahead of most other departments,” said Alison Bodor, president and CEO of the American Frozen Food Institute. “Frozen foods are a pandemic powerhouse ringing in $65.1 billion in retail sales in 2020, a 21% increase compared to a year ago.”

During the early weeks of the pandemic in mid and late March, frozen food sales nearly doubled. In subsequent months, sales tracked 30% to 40% ahead of a year ago. Gains slowly tapered off to around 15% to 20% above 2019 levels in the fourth quarter of 2020 — continuing to be well ahead of most other in-store categories.

The top three frozen food categories with the largest percentage of dollar growth in 2020, according to IRI, include seafood (+35.3%), poultry (+34.7%) and appetizers (+28.9%).

(Source: American Frozen Food Institute)

Center store dollar sales were up by more than 10% among more than half of grocery retailers in 2020, according to Supermarket News’ 2020 Center Store Trends Survey, with a total of 86% of retailer respondents saying they expect to see an increase in sales in the category in 2020 versus 2019.

When asked, “How has the coronavirus pandemic impacted your in-store center store sales?,” 55% of respondents said the pandemic has led to an increase in center store sales of 10% or more, while another 27% expect to see sales increases between 5% to 10%.

Within center store, there was a significant shift in what consumers bought during the pandemic. While snacks, beverages, groceries and beer/alcohol have been traditional leaders in the category, in 2020 retailers reported that the center store categories having the most success during the pandemic are household cleaners (mentioned by 73% of retailers), paper goods (71%), frozen food (63%) and shelf-stable food/grocery (60%). No surprise there, given the run on toilet paper and cleaning supplies during the initial outbreak of coronavirus.

(Source: Supermarket News)

Fifty-five percent of shoppers polled said they’ve been eating at home more frequently during the pandemic, according to Acosta’s “COVID-19: Reinventing How America Eats” study. The findings show a sizable change in eating habits versus before the health crisis. Among respondents, 44% report eating breakfast at home daily, compared with 33% pre-COVID.  Similarly, 31% are eating lunch at home every day versus 18% pre-COVID, and 33% are eating dinner at home daily versus 21% pre-COVID.

Opting to eat at home, however, has raised some issues for consumers when it comes to meal planning, Acosta’s research revealed. Forty-five percent of those surveyed cited concerns about exposure to COVID-19 when food shopping at the grocery store, while 40% said they’re challenged in having to plan different meals on a daily basis. 

(Source: Acosta)

In looking at their shopping habits during the pandemic, 58% of U.S. consumers said they shop where regular prices are low, and 43% reported buying the lowest-priced products, according to a dunnhumby study.

Of U.S. respondents, 36% use and 29% search for coupons on products they regularly buy, and 34% look online for the best sales. Twenty-one percent said they buy more store-brand items. Walmart was cited by 34% of U.S. consumers as offering the best value for the money, followed by Aldi (12%) and Kroger (9%).

“Retailers need to take note that most shoppers right now are on the hunt for more value by shopping at stores with regularly low prices, while also seeking discounts and promotions,” Jose Gomes, president of dunnhumby’s Chicago-based North America unit.

(Source: dunnhumby)

Americans have rediscovered the value of the family meal during the coronavirus crisis and plan to eat together more post-pandemic, according to research from the FMI Foundation.

Of more than 1,000 U.S. adults surveyed in mid-August, 94% reported that they’re cooking the same amount or more than before the COVID-19 outbreak. Three-quarters of respondents said they’re having the same amount or more family meals, both in-person and virtually.

Seventy-one percent of those eating more in-person meals — and 70% having more virtual meals — agreed that “I feel more connected to my family since the pandemic has started.” What’s more, people eating with others are realizing emotional benefits: 78% of respondents reported positive sentiments about family meals, such as “they are a high point of my day,” “they help to make me feel calm” or “they are an important part of my household’s regular routine.” 

(Source: FMI Foundation)