By 2021, 6.4% of groceries transactions could be made online.
The Netherlands’ Utrecht Due in large part to customer stay-at-home tendencies during the coronavirus (COVID-19) pandemic, Rabobank International predicts that by the end of 2021, online food purchases will account for 6.4% of overall grocery sales. According to the June prediction, online grocery store sales would have accounted for 4.6% of total sales by the end of 2021 if COVID-19 hadn’t been present.
By the end of 2019, 3.1% of all food sales were made online. By the end of 2021, online grocery sales might account for 4.8% to 9.1% of overall grocery sales, depending on a number of factors.
The report stated that although a wide range of outcomes are possible, “we feel the direct, long-term impact of the pandemic on US online grocery sales will be fairly modest,” adding that the most likely scenario would accelerate the adoption of online grocery shopping by 12 to 18 months when compared to a scenario in which the pandemic never happened. “We think the current rise in focus and investment in e-commerce is warranted, even if the growth from COVID-19 is only temporary. There is minimal chance of an overadjustment because so many food and beverage companies have put off investing in e-commerce for so long, though there are outliers.
The number of new users, the intensity of use, and the duration of the epidemic could all lead to a rise in online sales penetration. Poor user experiences, capacity constraints, and the characteristics of new users may cause penetration to decline.
Growing the online grocery industry is hampered most by getting customers to register and finish their first order, according to Rabobank. Grocers hurried to expand their online purchasing capabilities early in the pandemic, which led to unsatisfactory user experiences.
“Out-of-stock items, replacements, and delays afflict consumers who have been lucky enough or patient enough to acquire a delivery or pickup window,” the Rabobank report stated. “It’s already so bad that a Saturday Night Live skit making fun of the issue was produced.”
Curbside pickup usage rose to 36% for the May 11–17 time at a store from 19% for the March 23–April period.
5 period, based on Gallup data that Rabobank provided. For the week of May 11–17, 14% of respondents had groceries delivered, up from 11% for the period of March 23–April 5.
Baby boomers are the group least likely to stick with online grocery shopping, according to a report by FMI, The Food Industry Association, which was cited by Rabobank International. Ten percent of baby boomers responded that they will shop for food online more when the pandemic ends, compared to thirty-five percent of Gen Xers, forty percent of millennials, and thirty-four percent of Generation Z. After the epidemic passes, 20% of baby boomers, 10% of Generation X, 16% of millennials, and 22% of Generation Z said they would purchase fewer groceries online Z.
The Rabobank survey stated, “In other words, older consumers really don’t want to shop for groceries online.” “They actually had to have a pandemic before they started placing internet grocery orders. Therefore, it would make sense that once the crisis is passed, they will be more difficult to retain.