5 Digital Grocery Stats Retailers Need to Know
The constantly shifting consumer behaviors we’ve witnessed over the last few years make it difficult to predict trends. As the leading contextual commerce advertising platform, we prefer to base our recommendations on data rather than speculation. Here we share top takeaways from our consumer research to give grocery retailers insight into behaviors to keep an eye on.
Convenience is the #1 driver of online grocery orders
For the second year in a row, convenience has proven to be a major catalyst for online grocery shopping. In our last survey, approximately 74% of respondents indicated that convenience was a top driver of their decision to order groceries online. This creates a major opportunity for retailers to promote their varying fulfillment options, like delivery or buy online, pick up in-store (BOPIS).
81% of shoppers are likely to repurchase products from a past online order
Specifically, 41% said they are “very likely,” and 40% said they are “likely” to repurchase items. But loyalty can also be encouraged through convenient features like adding "Order Again" buttons or order history features. Retailers offering convenience in their online experience are more likely to retain online shoppers.
Price is the top factor for brand selection
While price took second place as a driver of online grocery orders, it was the top contender for brand selection (67% of shoppers). Naturally, inflation has impacted every aspect of consumers’ lives, and CPG products are no exception, However, with groceries falling into a nonnegotiable category of spending, we’re actually seeing a significant increase in consumers’ grocery budgets. Approximately 55% are cooking and eating at home more due to inflation. This increase in home cooking with budget on the brain means consumers are more likely to trade down to store brands, especially as heads of households are seeking inspiration to make the most of their cart while building their list.
Food blogs and recipe sites drive meal inspiration
For the second year in a row, consumers identified food blogs and recipe sites as the top sources of online meal inspiration. While social media platforms also fared well among consumers this year, most of those platforms drive back to food blogs and recipe sites, further cementing recipe content as the best content for CPG brands to leverage. As a result, it’s a vital tool for retailers too. In-recipe commerce media can drive incrementality for retailers across the board, from growing retailer data sets to increasing actual product sales.
→ Learn how contextual commerce can drive incrementality for retailers
Average basket value has increased 34% year-over-year
Trends in our shoppable recipe network have revealed that the average add-to-cart value increased 34% year-over-year. Meanwhile, the average item count stayed the same. In parallel, 40% of shoppers reported increasing their grocery budget in response to rising prices. Online grocery channels appear to be at least somewhat immune to the impacts of inflation, suggesting that both CPG brands and retailers should continue to invest in digital solutions.
Retail professionals foresee increased ecommerce sales and growing demand for grocery delivery in their future
In our CPG and Grocery Digital Advertising Report, we surveyed a select pool of retail professionals for their perspective on the top trends of the next 12 months. They called out growing ecommerce sales and growing demand for grocery delivery as the top two most impactful trends. The rise of digital grocery over the last few years demarcated groceries as a major ecommerce category last year, and it doesn’t look like that will change anytime soon. As the landscape becomes more competitive with last-mile delivery providers, retailers will have to continue investing in systems and technology to support such demand.
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If you’re ready to hit your commerce goals, contact us today. From promoting your private label line to becoming one of our integrated retailers, our contextual commerce solutions will help your grocery reach shoppers in the right context, and at the right moment.