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Online grocery shopping flourishes: Trends, challenges, and leading players in the US market

Online food and beverage retail sales, including in-store pickup, curbside delivery, and at-home delivery, surged to $76 billion in 2022, and Euromonitor International projects that online grocery will be the primary growth driver for the US food and beverage industry. The adoption of online grocery shopping escalated, with around 26% of Americans using these services in 2022, compared to 13% prior to the pandemic. High-income millennial parents with young children emerged as core users, valuing the time-saving aspect amidst their busy lives. Convincing younger generations that convenience justifies the extra cost will be key to future growth. Notably, premade meals, dairy, processed meat, seafood, and savoury snacks are popular categories in e-commerce, while fresh produce and baked goods face challenges due to consumer preferences for selecting their own items. Alcoholic beverages, especially wine, face obstacles due to varying state laws. Among beverages, hot drinks and tea show promise, and leading online grocery players include Walmart, Instacart, Amazon, and Kroger.

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