An overview of how Grocery apps are growing and diversifying amidst COVID-19, new partnerships & services, and key in-app solutions.
The state of online Grocery Delivery within the US
Since the lockdown and social distancing measures started, many users have dwelled on a fundamental question: [Are there] online grocery delivery services near me? 🔎. Truth is nowadays groceries are always near you.
US online Grocery sales represented $28.6B in 2019. However, in spite of experiencing an annual growth of 20% for the past four years, online purchases only made up 2.3% of all grocery sales in 20191.
Now things are beginning to change 😱.
With consumers trying to limit social interaction and outings, buying groceries online is becoming the go-to solution for several Americans. In June 2020, a study revealed that 35% folks consumers use online grocery delivery services—that’s almost 3X quite in August 2019!2As a result, industry players within the Food and Grocery industries are adapting to things in record time ⏱️.
Movers and shakers: hot partnerships within the grocery industry
Major retail corporations and convenience stores are partnering with Food apps to drive more reach and access mobile-first delivery solutions. for instance , Walgreens has partnered with DoorDash, and Target is functioning along side Shipt, it’s mobile-first delivery service.
Food apps are incorporating online Grocery Delivery. for instance , Uber Eats recently integrated with Cornershop, an on-demand grocery delivery platform, to level up its Grocery Delivery solution across America .
Traditional grocery players are developing their own apps. Some supermarkets and stores have opted for developing and improving proprietary apps. Kroger launched a replacement app version that saw a 92% increase in digital sales, and Walmart combined its main app with its Walmart Grocery app for users to buy across departments.
Delivery services are adapting to users’ current needs
The adoption of home delivery & grocery pick-up skyrocketed, reaching 70% higher volumes than before the pandemic3.Taking under consideration users’ new needs, Grocery apps evolved to offer:
New delivery options, including same-day, same-week, and scheduled delivery.
Enhanced pick-up services, like contactless in-store pick-up and curbside pick-up.
What’s the large opportunity?
In June 2020, online Grocery sales hit a record of $7.2B4. As shoppers are buying more and more often, this trend isn’t expected to hamper any time soon. In fact, US online grocery penetration is projected to grow from 34% in Q1 2020 to 55%-66% in 20245, bringing in additional shoppers and sales.
What does this mean for app marketers?
Shoppers are getting more conversant in Grocery delivery services, and this user behavior trend is predicted to stay even after things go “back to normal”. Marketers within the Food and Grocery industries should be able to outperform their competitors by building and maintaining a healthy-growing user base.
As a Grubhub’s shareholder letter put it last year: “Our newer diners are increasingly coming to us already having ordered on a competing online platform, and our existing diners are increasingly ordering from multiple platforms.” an equivalent applies to in-app Grocery shopping; especially within the face of latest partnerships. Users may need some preferences, but there’s no primordial go-to app for online grocery shopping.
To face high market competitiveness, any aggressive growth strategy must manage to match supply and demand, also as contemplate App Retargeting from the start so as to remain top-of-mind for users.
Matching Supply & Demand 🤝
Partnerships play a key role during this , but marketing can help too. By running Geolocated Ads, marketers can easily offer local promotions and/or highlight the features available in each area. This way, they show ads only there’s enough demand, supply, and couriers, ensuring they will deliver a [great] experience for his or her customers.