In 2017, Nielsen and the Food Marketing Institute made an announcement that galvanized the industry. By 2025, a fifth of all grocery spending — worth $100 billion — will come from online shopping. Since then, retailers and brands have been scrambling to get their e-commerce marketplaces set up. And the market has been developing faster than predicted, with online shopping now thought to reach the $100 billion mark by 2022.
This month, we spotlight those efforts by both food companies and retailers. We spent a day with Peapod, one of the first efforts at grocery e-commerce. We examine how food and beverage companies are trying to create impulse buys online, and explore the data collected through e-commerce. We also look at food and beverage companies that are skipping the store and selling direct-to-consumer.
David versus Amazon: Can independent grocers profit off e-commerce?
While large competitors often win on price and convenience, experts say small retailers can’t afford to shy away from online shopping.
Going around the grocery: How brands use e-commerce to sell direct-to-consumer
As the model continues to expand, brands and grocers are searching for innovative methods to reach consumers through data, technology, and content.
Deep data: What it tells retailers about shoppers, preferences and selection
Information easily collected in e-commerce "allows the retailer to do a better job of planning how to serve that individual customer,” said analyst Bill Bishop.
How Big Food drives impulse buys online
Whether it’s via Instagram, a manufacturer’s direct-to-consumer site or a click-and-collect grocery platform, legacy snack and candy brands are fighting to spark last-minute purchases.
Peeking inside the pod: A deep look inside Peapod's grocery delivery business
As more consumers purchase food online, the Chicago company increasingly depends on drivers like Ron Gordon to be the face of its business amid growing competition in the space.
Illustrations by Yujin Kim