According to statista, there will be massive growth in the online grocery delivery market by the year 2021. The United States will alone double the revenue from $14.2 billion from the year 2017 to $29.7 billion by 2021.
Seeing these figures, you can imagine just how much the grocery delivery business progresses. These figures are obviously going to rise.
Amazon and Walmart can be taken as examples of how much the retail giants have evolved and are still evolving, for instance, some entrepreneurs have started their businesses with the Instacart Clone app development.
Experts have predicted that the online grocery delivery market would rise in 2021.
The usage of an online grocery store in the United States in the year 2020 has increased massively in tandem with the growth of the COVID menace. This also shows us that users are shifting towards online shopping from conventional shopping.
Retail sales of Canadian grocery stores:
The monthly sales of the Canadian grocery store have increased and hit a high of 10.39 billion Canadian dollars in the month of March of 2020. This increase is over two billion when compared to the previous month.
The reason for the hike in sales is due to the spread of coronavirus and continuous panic. Because of this increase in the online grocery market, there is a decline of approximately 8.39 billion Canadian dollars by August 2020, according to Statista.
Grocery users now are enjoying extraordinary accessibility at their fingertips. The primary issue that the users faced were prolonged waiting hours, wandering in the store, and finding needed products. But now, accessibility to everything from the comfort of their confined spaces have ascended the number of users shopping through the apps.
Users are so busy in their daily lives, which makes way for the appreciation of online grocery delivery apps, which offer both comfort and convenience.
Apart from this, they have a choice. Since they are provided with so many online grocery stores that are active online, they can choose their favorite store.
The reason behind the growth of the online grocery delivery industry:
We see that the growth is extraordinary, but do we know the reasons behind it? Let’s find them out now.
There are many reasons to count on for the growth of this business. But the most popular one out of many is the COVID-19 impact. The outbreak of the coronavirus has been like a sudden crash of the wall that it didn’t allow any time for getting prepared.
The grocery business is no exception. Grocers were left astounded that they couldn’t decipher what was happening and how they could adjust to the changed needs of the users.
Though they didn’t have time to understand, there was also a rising demand for groceries at the same time.
Some users even faced inadequacy of the grocery products, which was the reason for the sudden acceleration of online grocery delivery business in the forward direction. By that time, the grocers became aware of how significant the value of their market is.
After a few weeks then, the impact was resolved because of the grocers who started delivering the groceries. This is the first reason behind the consecutive growth of the online grocery market. Though the pandemic was harsh to the world, it had somehow left a positive impact on the online grocery delivery business.
Take, for instance, that specific users have been delivered groceries from a typical grocer for a few months or maybe for a few years too. Now, even during a time of crisis an existing delivery business has been delivering groceries, why would the customer choose a new grocery delivery business? Makes sense, right?
The leading reason for the growth of the grocers is the trust that they have built between the users and them. This is for the grocery delivery stores in the market existing for a while now.
These existing grocers have a good connection with their users already that all they had to do was deliver the groceries within the time limit for making them sustainable.
Apart from this, users were also hesitant to trust other grocery delivery businesses when they are receiving their services on time. Therefore, ‘trust’ is the main factor in their current growth. Though it was not challenging for them to enter, creating an engaging presence was challenging.
Now, coming to the newbies, they had to face challenges like getting customer attention, quality maintenance, spreading the word, building trust, and so on. However, customer demand was on a large scale which blurred the challenges that could have been more adverse.
Thus, pre-pandemic has helped the existing online grocery businesses, and in case of newbies, it was the rising demand for groceries that helped them build and sustain in the online grocery market.
Comfort- the game changer:
Nowadays, users are always looking for comfort regardless of the business you run. This is one major factor that the growth of the online grocery market relies upon.
Users have a distinct affinity for comfy shopping. And pandemic is one of the reasons to boost their online shopping. Online businesses like Amazon have become the biggest dominator in the online business market. And the reason is comfort.
Starting from price, the convenient shopping experience, the speedy delivery, the quality of the product, or anything else, the customer demands are all met entirely by Amazon. So, we can see that people are looking for comfort.
So, imagine that the grocery delivery businesses are all offering this to their users, then undoubtedly users would go for it. Most of the credits would go to the younger generation that has transformed the trends of grocery sales. As they are highly reliable on apps that offer some delivery, the grocery market has changed its way.
Because users could not find a reasonable time for going to the store to buy groceries and drive back home, digital grocery sales are scaling to a higher level.
Safety has become the primary concern for users in recent months, including grocery shoppers. The grocery businesses need to ensure safety measures are followed by the delivery workers while delivering according to the demand of the users.
A new action followed by the grocery businesses is ‘Contactless Delivery.’ This has indeed led the customer to have a favorable opinion, and they are sticking to online grocery delivery businesses for this purpose.
Grocers are showing concern and trust, and this is what is helping the business grow. From the perspective of the grocers, it is essential for them to build trust rather than just selling groceries, which is the most needed thing as of now.
Since people want a responsible grocery delivery business now, who can understand their safety needs and because the grocers are providing the same, the growth is reflected continuously. Once they feel safe, they will rely on your services and you altogether.
The whole concept of grocery shopping is simplified by online grocery shopping. That includes bulk shopping too. While it is not comfortable to do bulk shopping from a physical store, it is easy to order groceries in a bulk amount from just the comfort of their homes.
In online grocery shopping, all they had to do is select the groceries, add them to the cart and place the order. It is much more comfortable while done in this way than find, pick, and collect the products from the physical store in bulk. So, we already know that the conventional method of shopping won’t give this comfort.
The thought itself makes it exhausting, when we think about the time spent standing in an hour-long queue with the bulk package of groceries. Thus, users don’t have any second thoughts about shifting to the online grocery delivery business. Reasons are the ease of shopping and the quick delivery services.
The online grocery delivery market is on the rise, as it has the extreme power to save time. Along with it, it also holds the efforts by keeping wait at the physical stores. This being another reason why users are taking a shift to the online business.
Tips for sustaining in the online grocery delivery business:
There are specific tips that can help in the positive growth of the online grocery business. However, constant efforts must be made to sustain. So, here are some:
Users always wish for the products to be of acceptable quality, and grocers must offer the same. Though some may be trusted users, if there is a lack of quality, it may lead to chances of losing them. So always keep a check on the product’s quality.
One significant factor that can decide your user’s happiness is delivering the products on time. So try to strategize your business in such a way that the delivery takes just a minimum time. Any grocery delivery business that follows this doesn’t have any chance of losing a customer.
Safety of users
Since the current trend in the business is safety, offer your users the same and don’t be careless about it. Opt for providing sufficient safety measures like the usage of gloves, masks, and sanitizers to your delivery executives. You care for their safety, and they will take care of your success.
The positive growth of the online grocery delivery market is enough reason for you to start a business of your own. It is the best time to step into it with the on-demand grocery delivery app solution. Sow your seeds today in the industry and reap your success tomorrow!