The Rise of Grocery Delivery Services

Updated: Jul 15

The Rise of Grocery Delivery Services

By Lily Erb, Content Writer

Grocery shopping is changing. Delivery services have transformed the way people shop for their groceries, making the time-consuming task of buying groceries easy and efficient. The service of grocery delivery is a fairly new industry, beginning with Peapod back in 1989. Since the birth of Peapod, the industry has grown considerably. The accessibility of the internet and smartphones has made online grocery shopping easy and simple. Same-day delivery makes the services convenient and time-saving. Although more people still shop for groceries in person, the delivery service industry has made considerable strides in the past thirty years.

Grocery delivery services have been on the rise even before America was impacted by the Covid-19 pandemic. Between the years 2009 and 2019, the grocery delivery industry saw a large increase of business. In 2018, the average percentage spent on online grocery shopping per household was 5.5%. Compared to 2010’s 1.8%, it’s clear to see the industry has seen impressive growth in a short time. The mindset of the public is shifting, and more Americans would rather pay a delivery fee than spend multiple hours grocery shopping every week. 

The arrival of Covid-19 in March of 2020 accelerated the growth of the grocery delivery industry, boosting sales and orders. As the virus spread across America, more people chose to stay inside and have their groceries delivered to their doorsteps rather than leave their home to shop. Now, in July of 2020, we are still battling the pandemic. Covid-19’s presence continues to impact our lives, and Americans continue to make changes to their daily routines in order to take precaution against illness. The strong boost given to the grocery delivery industry suggests that delivery services are a big part of the “new normal.”

The growth of grocery delivery services is predicted to continue rising. Globaldata Analysis and Forecasts predicts that by 2022, 9.7% of household income will be spent on online grocery shopping. Between 2020 and 2025, Deutsche Bank predicts a 236% increase in online grocery sales. As more Americans grow accustomed to the convenience and efficiency of grocery delivery, the industry will only grow.

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