The $321bn US packaged food market’s appetite for digital is increasing, according to the first annual L2 Digital IQ Index.
It found 86m Americans visited food and recipe sites in November 2013 and digital channels are starting to have an impact across the purchase funnel.
Thirty eight percent of grocery shoppers spend at least half of their planning time online and one in three shoppers utilise email when planning a trip to the store.
Once in store, digital influence increases: 90% of smartphone shoppers use their device in aisle, searching for recipes (37%), looking for coupons (24%), and researching nutritional information (19%)
Although e-commerce represents just 3.3% of grocery, analysts expect that share to explode to 6.7% to 16.9% in the next decade.
Stop and Shop’s Peapod leads the market with $550m in revenues in 20132 and an estimated 8.7% share of the e-grocery market. Rival Fresh Direct trails with 5.8%. However, Amazon and Walmart are lurking, and several recent announcements suggest widespread investment in grocery are underway.
Walmart is piloting a store in Denver, CO where users can pick up online orders without leaving their car. In addition, in-store pick-up is available through 11 store locations.
Although Walmart is the market leader in US grocery, its in-store shoppers prefer Amazon for online ordering.
The ‘Everything Store’ is rumored to be extending its Amazon Fresh programme to 20 urban areas by the end of 2014.
As households await the launch of Amazon Fresh, Amazon Prime Pantry lets Prime members order popular household essentials in everyday sizes.
Top 10 ranking
- Betty Crocker
- Ben & Jerry’s
- Weight Watchers