In June, consumers spent a staggering $9.8 billion on online groceries, a 27% jump from last year’s $7.7 billion, according to the Mercatus and Brick Meets Click Grocery Shopper Survey. While that sounds impressive, it’s important to note that food prices rose by 2.4% in the same month, which reflects ongoing inflation in grocery costs, as reported by the U.S. Bureau of Labor Statistics.
The Consumer Price Index showed food-at-home prices climbed by 2.4% over the past year. Specific categories saw significant increases: meat, poultry, fish, and eggs rose by 5.6%, with egg prices surging 27.3%. Non-alcoholic beverages went up by 4.4%, while fruits and vegetables only increased 0.7%. There was a modest rise for cereals, bakery products, and dairy as well, with each category increasing by about 0.9%.
Interestingly, all segments of online grocery shopping reported sales gains of 25% or more during June. However, in-store grocery sales took a hit as more shoppers turned to online options.
The delivery segment is particularly thriving, reaching $3.8 billion in sales, a 29% increase from last year. This growth is attributed to more users, increased order frequency, and higher average order values. Delivery now accounts for over 38% of all e-grocery sales, capturing an additional 0.45% in market share compared to the previous year.
David Bishop from Brick Meets Click mentioned that this trend is likely to persist. “Many users enjoy free delivery options, breaking down barriers that once kept them from using these services,” he explained. This shift suggests that the convenience of delivery is becoming more appealing to consumers.
On the flip side, the pickup segment fell by 44% for the second consecutive year, representing a slight decline from June 2024. However, sales still increased by nearly 25% to $4.3 billion, thanks to more users and higher order frequencies.
The ship-to-home segment, while the smallest, saw a 33% increase in sales, totaling $1.7 billion. Even though it makes up nearly 18% of online grocery spending, its user base and order frequency grew this quarter compared to June last year.
Interestingly, overall grocery spending per household increased only 2.5% during the last week of June, suggesting that in-store sales might be declining across various retail formats.
Walmart continues to see a rise in its market share, with nearly a full percentage point increase in households citing it as their primary grocery store. Discount retailers like Aldi also gained ground, while traditional supermarkets lost over two percentage points. In fact, one in four households that ordered groceries online from a supermarket also purchased from Walmart in June, marking a 4% year-over-year increase. This trend of cross-shopping between supermarkets and Walmart has been consistently rising each June since 2020.
As these trends continue to evolve, it’s clear that online grocery shopping is becoming a dominant force. Many consumers are finding new ways to meet their grocery needs while navigating prices that continue to rise.
For more details about grocery price trends, you can explore the latest report from the [U.S. Bureau of Labor Statistics](https://www.bls.gov).
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