U.S. online grocery sales surge 37% in April

21 May 2020

April was another record-breaking month for online grocery sales with shoppers surpassing March’s record-breaking $4 billion in sales to spend $5.3 billion for grocery delivery and pickup. This is a 37% increase over March, according to data from Brick Meets Click and Symphony RetailAI.

Not only did the sales figures hit record-breaking levels, but the total number of orders in April increased by 33% bringing the number of U.S. households that are shopping for supermarket staples online to 40 million. On average, the size of the orders themselves ticked up 3% from $82 to $85 for the four weeks ending in March.

U.S. online grocery sales surge 37% in April

In total, 74% of those surveyed indicated that they had shopped online in the last 30 days. Compared to a Gallup poll from August 2019 that showed 81% of Americans never order groceries online, this represents a significant shift.

The survey conducted by Brick Meets Click notes these numbers of online grocery customers may rise even further. Just over a quarter of the households surveyed (26%) said they did not buy groceries online within the last 30 days but were “extremely or very likely” to shop online within the next three months.

A large part of the motivation contributing to this rise in online shopping behavior is due to the fear of contracting the coronavirus. Forty-seven percent of those surveyed had a “high level” of concern about the virus which contributed to the change in their shopping behavior. This reasoning is supported by a recent survey from C+R Research where 60% of respondents reported being “fearful” of purchasing their groceries at a brick and mortar location. s

However, the question remains whether this increase in online shopping will continue once the pandemic subsides. Prior to the pandemic, FMI and Nielsen estimated online food and beverage sales would hit $143 billion by 2025 and account for 30% of grocery spend, reported Grocery Dive. At that time, the research showed Gen Z shoppers spent 15% of their grocery budget online and Millennials spent 26% through e-commerce.

After quarantine orders were issued, the adoption of online grocery shopping escalated overnight and online retailers and third-party delivery apps struggled to keep up with demand. Even with the hiccups associated with this meteoric expansion though, experts cited in various publications including Business Insider and the Atlantic are predicting this phenomenon to accelerate the adoption of online grocery shopping for the long term.

Related news

Cultivated fat is a potential popular addition to plant-based products

Cultivated fat is a potential popular addition to plant-based products

21 Jan 2021

Cultivated fat might be the next ingredient to melt the hearts of fans of plant-based products, with two-thirds of plant-based meat companies interested in incorporating the ingredient into their recipes, according to a survey Peace of Meat.

Read more 
Swedish ice cream maker snags $30 million, partners with Perfect Day

Swedish ice cream maker snags $30 million, partners with Perfect Day

20 Jan 2021

Swedish sugar-free ice cream brand, Nick’s scooped up $30 million in a funding round led by Stockholm-based investment group Gullspång invest, an early investor in Oatly. Along with a sizeable infusion of cash, the better-for-you ice cream brand also s...

Read more 
Pepsi debuts its own “Cocoa” Cola flavor

Pepsi debuts its own “Cocoa” Cola flavor

13 Jan 2021

PepsiCo is fanning the fires of the cola wars with the release of its new Pepsi “Cocoa” Cola flavor. The new soda reportedly has a taste that blends the classic Pepsi soft drink with flavors of hot cocoa and marshmallow.

Read more 
Gotham Greens expands its local greenhouses with $87M in funding

Gotham Greens expands its local greenhouses with $87M in funding

7 Jan 2021

Indoor greenhouse company Gotham Greens raised $87 million in a Series D round led by Manna Tree, bringing its total funding to $130 million while also doubling its revenue in the past year. Retail volume growth has jumped 80% year over year for the co...

Read more 
Singapore becomes first country to approve lab-grown meat

Singapore becomes first country to approve lab-grown meat

4 Jan 2021

The Singapore Food Agency, the city state’s regulatory body for food, approved San Francisco startup Eat Just’s cell-based meat chicken product, paving the way for its sale in the country.

Read more 
Abbott launches infant formula with immune component

Abbott launches infant formula with immune component

10 Dec 2020

Infant nutrition company Abbott Nutrition launched its new Similac line Pro-Advance which is its “closest formulation to breast milk” and includes added 2’-FL HMO prebiotic for infant immune support. The company is launching this product in Canada wher...

Read more 
Terra Kaffe closes funding for single-serve, podless espresso machine

Terra Kaffe closes funding for single-serve, podless espresso machine

1 Dec 2020

Superautomatic espresso maker Terra Kaffee closed a $4 million funding round with the New York-based venture capital fund The Seed Lab, bringing its total funding to just shy of $5 million since its debut in 2019.

Read more 
Former Walmart alumnus brings AI to trucking, minimizing spoiled produce

Former Walmart alumnus brings AI to trucking, minimizing spoiled produce

26 Nov 2020

The former Walmart executive Syed Aman has moved on in his logistics career and is now the cofounder and CEO of HWY Haul, a company that professes a goal of streamlining the business of delivering produce to retailers while also reducing food waste.

Read more 
Cham Foods releases pulse and grain-based instant meals

Cham Foods releases pulse and grain-based instant meals

24 Nov 2020

Israeli based Cham Foods has engineered a line of dry, ready-to-eat pulse- and grain-based instant meals. These new instant meals and soups contain legumes and grains that when hot water is added retain the shape and texture and take only minutes to ma...

Read more 
Israeli cell-based meat company Meat Tech 3D files for U.S. IPO

Israeli cell-based meat company Meat Tech 3D files for U.S. IPO

12 Nov 2020

Israeli cell-based meat company, Meat-Tech 3D, is a relative newcomer to the industry but is making up for lost time with a flurry of activity. Most recently, the company filed its paperwork with the U.S. Securities and Exchange Commission to begin the...

Read more