U.S. eGrocery Market Share: 4Q24 Closed with Record Sales High of $30 Billion

U.S. eGrocery capped off 2024 with a record-breaking $30 billion in Q4 sales, marking a 20%+ year-over-year (YOY) increase, according to Brick Meets Click. Growth accelerated sequentially throughout the year, with an explosive surge in demand in the second half—driven largely by the rapid expansion of Delivery services.

A bar chart showing U.S. Quarterly eGrocery Sales in Billions. Sales includ all retail formats and receiving methods. 1Q24 = $24.4 Billion with a PCYA of -3%; 2Q24 = $23.0 billion with a PCYA of 4%; 3Q24 = $27.4 billion with a 12% PCYA; and 4Q24 = $29.6 billion with a PCYA of 22%.

Key Insights from Q4 2024

Delivery Takes the Lead: For the first time, Delivery surpassed Pickup in sales share, surging more than 30% YOY. The shift underscores the increasing importance of convenience in customer purchasing decisions, particularly within the mass retail sector.
Walmart Strengthens Online Dominance: Walmart (excluding Sam’s Club) gained 200 basis points (bps) in share YOY in Q4, fueled by a sharp rise in Delivery orders. Compared to Q4 2021, Walmart’s share of eGrocery sales has expanded by over 1,000 bps, fortifying its lead online.
Pickup Still Growing: While Delivery dominated the headlines, Pickup also posted a 10%+ YOY increase in Q4 – driven organically, without significant promotional incentives for customers. The sustained growth highlights continued demand for lower-cost fulfillment options.
Order Frequency on the Rise: Monthly active users (MAUs) reversed a multi-year decline in order frequency, particularly for Delivery, further propelling eGrocery sales in 4Q24.

Three Strategic Takeaways

The Shifting Pickup vs. Delivery Equation
Traditionally, Pickup has been the more cost-effective option for both retailers and customers. However, evolving Delivery strategies – particularly at Walmart – are changing the customer’s calculus that typically required tradeoffs between cost and convenience.
Cost vs. Convenience: The New Battleground
While product pricing remains a critical factor, managing the added costs associated with charges, service fees, and tips is equally as vital in eGrocery. As retailers develop ways to lower the added costs connected to Delivery, it is helping elevate the role of convenience in building more demand for Delivery.
Subscriptions and Memberships Reshaping Customer Behavior
Historically, these services attracted existing customers. Now, programs like Walmart+ are actively expanding their monthly active user base, drawing in new shoppers. The rise of subscriptions and memberships are having a powerful impact, boosting order frequency, average order values (AOVs), retention, and customer lifetime value (CLV).

A line graph showing how Supermarkets continue to cede eGrocery sale share to Walmart (excluding Sam's Club). In 4Q21, Supermarkets had an 800 basis point lead over Walmart. Now in 4Q4, Walmart has a 1170 basis-point lead over Supermarkets.

Competitive Outlook: What’s Next for Supermarkets?

With the market evolving at a relatively rapid pace, Supermarkets must stay on top of competitive shifts by analyzing broader eGrocery buying behaviors and adapting their strategies accordingly. Understanding how customers interact with online grocery platforms will be crucial to maintaining competitiveness and share in 2025 and beyond.

For additional insights and analysis, contact David Bishop at Brick Meets Click. Subscribers to our Quarterly eGrocery Market Share Report series also receive a complimentary follow-up call for deeper strategic discussions.

About this report and analysis

The U.S. eGrocery Market Share Report - 4Q24 is a quarterly report created by Brick Meets Click and sponsored by Mercatus. The report is designed to help grocery retailers, and their suppliers understand the how the eGrocery market is shifting by providing market share estimates across several retail formats (Supermarkets, Mass, Hard Discount, etc.) and receiving methods (Delivery, Pickup, and Ship-to-Home) over a three-year period, running between July 2021 and September2024.

The analysis leverages data from the monthly Brick Meets Click/Mercatus Grocery Shopping Survey, an independent research initiative conducted by Brick Meets Click since March 2020, and sponsored by Mercatus. This analysis is based on 5,372 responses compiled across the Q4 of 2021; 5,196 responses compiled during Q4 2022; 5,349 responses in Q4 of 2023; and 5,245 responses compiled during Q4 of 2024 from adults 18 years and older who participated in the household’s grocery shopping.