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Friday, October 19, 2018
Online sales of groceries will more than quadruple from now through 2023
Online sales of groceries will more than quadruple from now through 2023 as web-based options become more available and consumers more willing to shop for their food online, according to a new forecast from market research firm Packaged Facts.Already, online grocery sales have more than tripled between 2013 and 2018. Most of the growth has come since 2016, with the expansion of both e-commerce platforms and conventional grocery stores. As an example, Aldi launched a partnership with InstaCart in three cities in August 2017; by September 2018 the company announced it would extend the service to all of its U.S. stores.Packaged Facts expects more people to become open to trying online grocery shopping, while those who already do it are seen making purchases more frequently. Increased use of smartphones, better website interfaces and mobile apps, and growth of crowdsourced business models for shopping and delivery all have fueled the online grocery boom.Amazon and Walmart are currently the biggest participants in the market, generating nearly 28 percent of online grocery sales, the firm said. Instacart is the largest third-party pack-and-deliver company, and Kroger, FreshDirect and Peapod are also major players.Walmart’s dominant national presence, including its large number of rural stores, is expected to give the retail giant a competitive advantage in expanding online food shopping to much of the U.S. population going forward.