U.S. Online Grocery Sales Jump 19% in 2024

The US eGrocery market saw a significant boost in December 2024, with sales climbing to $9.6 billion, an 18.7% increase compared to the same month the previous year. This growth marks the fifth consecutive month where eGrocery sales have exceeded $9.5 billion, capping off a year that saw a notable shift in consumer behaviour.

A Tale of Two Halves

The year 2024 can be effectively divided into two distinct periods for eGrocery sales. The first half of the year experienced flat growth, with only a 0.3% increase compared to the first half of 2023. However, the second half of 2024 witnessed a remarkable surge of 17.7% year-over-year growth, driving overall annual sales up by 9.1% compared to 2023. This dramatic shift is primarily attributed to the widespread availability of deep discounts on annual subscriptions and memberships.

The Power of Discounts

The introduction of substantial discounts, ranging from 33% to 80% off, by various marketplace providers, mass retailers, and supermarkets, proved to be a significant catalyst for growth. These discounts resonated with consumers, offering them an opportunity to save money and encouraging them to invest in specific providers. This increased investment led to more frequent orders, benefiting providers with a larger share of the grocery wallet, as well as improved customer engagement and retention.

Delivery, Pickup, and Ship-to-Home All See Gains

All three primary methods of receiving online grocery orders—delivery, pickup, and ship-to-home—saw a positive shift in sales performance in the second half of 2024.

• Delivery: Growth jumped from less than 4% in the first half of the year to over 25% in the second half. In December 2024, delivery sales reached $4.0 billion, a 24.6% YOY increase, accounting for 41.7% of total eGrocery sales.

• Ship-to-Home: Growth also increased dramatically, from 5% to approximately 20% between the two halves of the year. December 2024 sales surged nearly 40% YOY to $1.8 billion, contributing 18.9% of total eGrocery sales.

• Pickup: This method shifted from a 4% decline in the first half to nearly an 8% gain in the second half. Pickup sales in December 2024 climbed 5.3% YOY to $3.8 billion, accounting for 39.4% of the market share.

Challenges for Grocery Operators

Despite the overall growth in the eGrocery market, grocery operators face stiff competition from mass retailers. Over half of all monthly active users (MAUs) completed online grocery orders with a mass retailer in December 2024, compared to only approximately one-third with a grocery operator. Furthermore, a third of grocery's MAU base also placed orders with mass retailers in the same month, highlighting the challenge of retaining customers. Mass retailers also demonstrate stronger repeat customer intent for both delivery and pickup services, although the gap has narrowed compared to the previous year.

Strategies for Success

To compete effectively, regional grocers are advised to focus on delivering real savings and targeted loyalty perks. By leveraging AI-driven personalisation and integrated loyalty solutions, grocers can convert occasional shoppers into loyal digital customers, driving repeat orders and larger baskets across both online and in-store channels.

Key Takeaways

• The eGrocery market experienced significant growth in December 2024, reaching $9.6 billion.

• Deep discounts on subscriptions and memberships fuelled growth in the second half of 2024.

• All three fulfillment methods—delivery, pickup, and ship-to-home—saw substantial sales increases.

• Grocery operators face stiff competition from mass retailers and need to focus on loyalty and personalised offers.

This data is based on the Brick Meets Click/Mercatus Grocery Shopper Survey, an ongoing independent research initiative. The survey was conducted on December 30-31, 2024, with 1,694 adult participants.