2023 Digital Grocery: Year in Review

Summary

The “2023 Digital Grocery Year in Review” report offers an extensive analysis of the digital grocery landscape, emphasizing the significant role of omnichannel strategies in shaping the industry. With $926 billion in total grocery sales, of which $121 billion (13%) were digital sales, the report underscores the growing influence of digital channels.

The report also discusses the impact of inflation, which led to an increase in basket sizes and a consolidation of spending with fewer grocers. Despite these challenges, large and medium grocers experienced positive growth in the latter half of the year. Additionally, the report examines the decline in third-party sales and the increasing focus of grocers on owning the shopper experience.

Take a deep dive into the new wave of consolidation in the grocery sector, driven by stringent market conditions and the departure of zero-interest-rate policies. This trend underscores the importance of geographical reach in digital strategy and suggests an imminent consolidation among ‘quick’ commerce and third-party apps, with acquisitions and mergers expected to redefine the marketplace.

The emergence of AI as a competitive lever, particularly for small and medium grocers, is another key theme. With a projected 4x increase in spending on AI capabilities by 2025, AI is expected to transform various aspects of the grocery industry, especially in supply chain and merchandising.

Survey Demographics

The report is based on the analysis of 2.2 million shopper orders in the US between January 1, 2022, and November 30, 2023.

Grocery shoppers surveyed: 40,133
Executives surveyed: 3,883

Download the full report.