Online grocery sales surged nearly 19% last year to $325 billion, driven by shifting consumer behavior and improved delivery infrastructure. A new report projects U.S. online grocery sales will grow at an annual rate of 11.6% through 2028, reaching $452 billion and capturing 25.5% of total grocery spending. The data reveals omnichannel shopping is now standard, with 94% of consumers purchasing both online and in-store. Retailers are gaining competitive advantages through faster delivery times, now averaging two days compared to four days in 2021. High-income households are driving growth, with spending up 29% for those earning over $150,000 annually. Social commerce is emerging as a significant channel, with TikTok Shop grocery sales jumping over 90% last year. Success will depend on retailers seamlessly integrating digital and physical experiences into cohesive customer journeys.
