December 2024 U.S. eGrocery Sales Reach $9.6 Billion, Up 19% YOY

Market Overview

The U.S. online grocery market closed out 2024 on a high note, with December sales reaching $9.6 billion—a 19% increase year-over-year (YOY) according to the Brick Meets Click/Mercatus Grocery Shopper Survey fielded December 30-31, 2024.

This marks the fifth consecutive month of sales exceeding $9.5 billion, driven by strong growth in all fulfillment methods and aggressive promotions on memberships and subscriptions that started to appear in mid-May.

2024 Performance Highlights

Membership/Subscription Discounts Propel Growth

‍Deep discounts of 33%-80% on memberships and subscriptions sparked a 17.7% YOY sales surge in the second half of 2024, following a flat first half. The promotions began in mid-year and have continued off and on since then from a variety of marketplace providers, Mass retailers, plus national and regional Supermarkets as well.

“While subscriptions and memberships aren’t new, the deep discounts were new, and they resonated with customers by offering the opportunity for significant savings,” said David Bishop, partner at Brick Meets Click. “As a result, customers are more vested in their provider-of-choice, motivating many to place more orders which helps those providers to gain a larger share of the grocery wallet and improve engagement and retention rates.”

Annual Growth

Total eGrocery sales climbed 9% for the year, with 2H24 driving the momentum.

Overall eGrocery sales during 1H24 were basically flat, posting only a 0.3% gain versus 1H23 while eGrocery sales surged 17.7% YOY during 2H24.

Fulfillment Trends for December

• Delivery sales of $4.0 billion rose 24.6% YOY, contributing 41.7% of total eGrocery sales for the month.
• Ship-to-Home sales of $1.8 billion surged 40% YOY, reaching 18.9% market share.
• Pickup sales of $3.8 billion posted a 5.3% YOY increase, contributing 39.4% of total eGrocery sales.

Mass Retailers Continue to Outpace Grocery Operators

‍The competitive landscape remains challenging for grocery operators as Mass retailers maintain a dominant position in the market.

• Over 50% of monthly active users (MAUs) placed orders with Mass retailers in December, compared to 33% for grocery operators.
• Cross-shopping between Grocery and Mass also surged, further intensifying the battle for customer loyalty.

Strategic Recommendations for Grocery Operators

‍“Regional grocers looking to boost eGrocery sales should focus on delivering real savings and targeted loyalty perks,” said Mark Fairhurst, Chief Growth Marketing Officer at Mercatus. “By leveraging AI-driven personalization and integrated loyalty solutions, grocers can convert occasional shoppers into loyal digital customers, driving repeat orders and larger baskets across both online and in-store channels, to fuel sustained growth.”

Closing Thoughts

As grocery retailers gear up for 2025, focusing on value-driven strategies and innovative digital solutions will be key to fostering long-term growth and profitability. When your organization needs analytical support, competitive intelligence, strategic planning or advisory services, Brick Meets Click has the insights and skills set to keep you moving forward in the eGrocery space.

Reach out to david.bishop@brickmeetsclick.com to learn more.

About this consumer research‍

The Brick Meets Click/Mercatus Grocery Shopping Survey is an ongoing independent research initiative created and conducted by the team at Brick Meets Click and sponsored by Mercatus.

Brick Meets Click conducted the most recent survey on December 30-31, 2024, with 1,694 adults, 18 years and older, who participated in the household’s grocery shopping, and a similar survey in December 2023 (n=1,745). Results are adjusted based on internet usage among U.S. adults to account for the non-response bias associated with online surveys. Responses are geographically representative of the U.S. and weighted by age to reflect the national population of adults, 18 years and older, according to the U.S. Census Bureau.

The three receiving methods for online grocery orders are defined as follows:

• ‍Delivery includes orders received from a first- or third-party provider like Instacart, Shipt or the retailer's own employees.‍
• Pickup includes orders that are received by customers either inside or outside a store or at a designated location/locker.‍
• Ship-to-Home includes orders that are received via common or contract carriers like FedEx, UPS, USPS, etc.

For more information about December 2024 results, check out the latest Brick Meets Click eGrocery Dashboard or visit the eGrocery Monthly Sales report page for information about subscribing to the full monthly report.