Grocery Grows Up

In terms of ecommerce categories, grocery has long been considered a sleeping giant…

That was until the pandemic. 

According to a recent report written by Adobe, in the past two years, grocery’s share of ecommerce purchases has risen by 30%. Adobe called Grocery “breakout category of the year,” as it now joins apparel and electronics in representing 42% of all ecommerce purchases. 

Currently, consumers spend an average of $6.7 billion monthly online to buy groceries, more than double the $3.1 billion spent pre-pandemic. 

Looking ahead, Adobe forecasts $7 billion per month and over 100 billion in annual revenue.

This is a growth curve with no end in sight, and it’s huge news for DTC CPG brands everywhere. 


Key Takeaways from grocery’s coming out party 🎉

You don’t need to discount to grow. Grocery is a category with minimal discounting compared to electronics and apparel and its growth highlights a shift in the digital economy, where speed and convenience are becoming as important as cost savings. 

Wally World beats Bezos. Since the start of the pandemic, Walmart led the charge with an 84% increase in e-groceries which surpassed Amazon’s 63% growth. Many entrepreneurs focus on the Amazon decision, but it also might be time to consider Wally World. 

One stop shops pop: Grocery stores are masters of the upsell. You come in for bok choy and you end up with a $100 wok. If you’ve got enough skus and your upsell and retention game are strong, you can bring customers in on lower priced items, and keep them filling their baskets again and again. 

If you’re building in the CPG space, get excited. If you’re Bezos, you better watch your back because Wally’s coming for you. 

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