US Online Grocery and Food Delivery Market Research Report to 2021: Ken Research

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US Online Grocery and Food Delivery Market
Research Report to 2021 Ken Research
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• How Online Grocery is Positioned in the US?
• The online grocery service industry in the US is
  at nascent stage. The market has witnessed a
  robust growth over past six years. The online
  grocery industry has begun growing with the
  increase in millennials using online grocery has
  been on the rise over the years as they prefer
  paying more for the convenience and this behavior
  has led them to purchase grocery online even with
  high transportation charges. Moreover, the
  startup trend in this industry has made a
  positive impact on the market with various
  companies such as Shipt, Farmigo, Instacart and
  others entering the market.

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Online grocery market has grown from USD
million in 2011 to USD million in 2016, growing
at a CAGR of during the period. The increase
in millennials using online grocery has been on
the rise over the years due to increase in the
smart phone users and internet penetration.
Millennials prefer paying more for the
convenience and this behavior has led them to
purchase grocery online even with high
transportation charges. Which Product Category
Dominated Online Grocery Market? Bread and dairy
products dominated the product category in the US
online grocery market with revenue share of of
the total market in 2016 due to high usage of
these products. Bread is staple food of the US
and therefore, the usage of bread is highest,
which results in excessive purchase of this
product with the evolving online grocery, hence
driving market for the segment. Similarly, the
consumption of processed dairy products including
cheese, evaporated and
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condensed milk and ice cream has inclined in the
US in the recent years, which further justifies
the reason behind dominating share of the
segment. Fruit and vegetables were observed to
hold second share in the market with revenue
share of in the total market. Rising
consumption of fruits especially in form of
juices has been observed as the major factor
driving growth of the market. Both commercial and
street wide juice vendors are observed to order
fruits through online mode. Other product
category includes beverages, household products,
personal care and others. Which Mode of Ordering
is more popular in Online Grocery Market of the
US? Website as mode of ordering for online
grocery shopping captured revenue share in
2016 owing to the higher trust factor compared to
mobile apps. The features such as comparability,
big screen and others surpass the mobile apps.
Moreover, there is no access to
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personal information of the customer while using
websites and websites use less memory as compared
to apps. The consumers are observed to be more
comfortable in purchasing grocery through website
mode, which further drives the market for the
segment. of the online shoppers in the US
prefer to do shopping from websites majorly due
to clarity of picture and specifications through
the source. Mobile as a mode of ordering for
online grocery captured lower share than the
website but is expected to grow in future owing
to increase in tech savvy population, rise in
smart phone users and internet penetration. The
rising population for using mobile for ordering
online grocery can be advocated to high use of
mobile apps such as Shipt, Instacart, Amazon
Prime Now, Peapod, Google Express and others over
the years. It was observed in 2016 that of
millennial used online grocery mobile app.
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Which Factors are expected to Drive Growth of
Online Grocery Market in the US in Future? Online
Grocery market will grow at a tremendous rate in
coming future. The market will increase at a CAGR
of during 2016-2021 to reach at USD billion
in 2021 owing to rising smart phone users and
internet penetration. Introduction of startups
and mergers and acquisitions is anticipated to
result in expansion of this market and number of
stores and hence, the accessibility will increase
for the consumers. Walmart had planned in 2016 to
add additional 500 stores in the US. This will
have a positive impact on the industry.
Millennials and Generation Z have generated the
highest revenue in the US online grocery market
and this trend coupled with the changing
perception of the consumers about online grocery
is anticipated as a major growth driver for US
online grocery market. Online grocery market will
be largely dominated by Bread and Dairy products
in coming future. The Bread and Dairy products
orders will
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contribute a share of in 2021 with mobile-app
mode of ordering getting more popular among the
nationals. Which Food Type is expected to
Dominate Food Delivery Market in the US? Pizza
dominated the US food delivery market with
revenue share in 2016 owing to the high
consumption of pizza in the US. Italian is the
most popular type of ethnic food in America and
pizza tops the chart. Cheap deals and convenience
have made pizza chains successful in the US.
Moreover, easy availability and fast delivery
have increased its consumer base leading to
rising food delivery of pizza in the country.
Additionally, the strong marketing strategies
which include advertisements and promotional
offers by players who are operating in
Pizza-delivery market including Dominos, Pizza
Hut, and Papa Johns has attracted huge number of
customers towards them, providing segment
dominant share. Pizza online
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ordering generated of the total online
ordering revenue in 2016, clearly advocates high
demand for Pizza delivery. Which Mode of
Ordering Generates More Revenue For Food Delivery
in the US? Offline orders contributed share in
mode of food delivery in 2016 owing to the fact
that people in the US tend to order through their
mobile calls rather than through apps or website
mode. Convenience and habit associated with
ordering through offline mode has been considered
as the major reason for high share of the
segment. 9 out of 10 people in the US opted to
order through phone for online or takeout food
delivery orders in year 2015, clearly explaining
reason for high share of the segment. Online
orders contributed revenue share in mode of
food delivery in 2016. The increase in number of
smart phone users over the years has been
observed as the major reason for changing
consumer
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• behavior towards online ordering. This has
  increased food delivery market revenue generation
  through online medium. The number of online
  orders doubled from million in 2010 to
  million in 2015, showing the trend of offline
  delivery shifting towards online delivery.
• How are US Online Food Delivery market
  positioned?
• The food delivery business in the country
  witnessed a rapid change majorly owing to
  introduction of new online platforms in the
  country. The online food delivery industry has
  been transforming over the years and the market
  incorporates two types of business models. The
  most common form of delivery method is still the
  traditional model in which the consumer places an
  order with the local restaurant over the phone
  and waits for the restaurant to bring food to the
  customers doorstep. This traditional model has
  occupied maximum share in the market and most of
  the orders are still placed on phone. As the
  digital technology is reshaping the customers are
  getting

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accustomed to placing order through mobile
applications or websites. In terms of revenue, US
online food delivery market witnessed positive
growth with revenues increasing from USD
billion during 2011 to USD billion during 2016
at a CAGR of during 2011-2016. Online food
delivery players allow consumers to compare
offerings and order meals from a group of
restaurants through a single website or app.
Availability of multiple cuisines and various
restaurants on a single platform for a minimal
delivery charge attracted customers towards
online food delivery. Which Factors are expected
to Drive Future Growth of the US Food Delivery
Market? Online Grocery market will grow at a
tremendous rate in coming future. The market will
increase at a CAGR of during 2016-2021 to
reach at USD million in 2021 owing to changing
consumer trends of choosing food delivery over
dining. The innovative technology Such
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• as drone delivery announced by Amazon shall
  attract more customers to the food delivery
  market due to the factors such as time-saving and
  convenience. More technological advancements like
  this are expected to be introduced in the market
  during the forecast period, hence driving the
  market. The food delivery services are expected
  to penetrate further in more cities and reach
  more consumer base leading to a positive impact
  on this industry.
• Companies Cited in the Report
• List of Companies
  Companies Covered in
• Wal-Mart
  the Report
• Amazon Fresh
• Peapod
• Kroger
• FreshDirect Major
  Players in the US Online Grocery
• Safeway and Food
  Delivery Market

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• Dominos
• GrubHub
• Pizza Hut
• Papa Johns
• Eat24
• Postmates
• DoorDash
• Jimmy Johns
• Panera
• Key Factors Considered in the Report
• USA Grocery Market
• Food Delivery Apps in US
• Online Grocery Orders US
• Food Delivery Startups in US
• Number of Orders Grocery US

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• Online Food Ordering in the US
• Food Delivery Shopping Online US
• Amazon Grocery Market US
• Diet Food Delivery in the US
• Food Delivery Startups in US
• Home Delivery Takeaway in the US
• Number of Restaurant Apps Download US
• Competition in Online Grocery Market
• Online Grocery Shopping Trends US
• Online Food Delivery App Download US
• Kroger Market Share Grocery US
• For more information on the market research
  report please refer to the below link
• https//www.kenresearch.com/technology-and-telecom
  /it-and-ites/us-online-grocery-food-delivery-marke
  t/142260-105.html

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