2024 Digital Grocery Takeaways

As 2025 kicks off, it is only fitting that we pause for a moment to reflect on the evolving digital grocery sector and the key themes that defined the segment over the past 12 months.

Grocery Doppio’s recently released 2024 Digital Grocery: Year in Review report highlights five critical digital grocery aspects that played a major role in 2024, providing data-backed takeways on the year that was.

The full report can be downloaded for free here. Below is a quick look a the findings.

#1 Spending More, Shopping Less

Customers spent nearly a trillion dollars ($941 billion) on groceries over the past 12 months (+1.7%), with $126 billion spent in the digital sector. Digital set the sales increase pace with 4.2% year-over-year growth compared to in-store’s more pedestrian 1.3% rise.

While digital grocery spending has increased, many customers actually reduced the number of digital orders placed in 2024. Nearly four out of 10 (39%) of digital grocery shoppers report a reduced number of year-over-year digital orders. The good news is that while individual orders have decreased, their value has increased —albeit modestly — by .8%. Sixty-seven percent of digital shoppers report that they spent more with their preferred digital grocer in 2024.

#2 Walmart Capturing Its Share

Walmart has long been the king of retail. With its low prices, massive assortment, and enormous presence, it is the go-to retailer for millions of shoppers. In fact, in the United States 90% of the population lives within 10 miles of a Walmart location, making the big box giant ubiquitous with shopping.

It is no surprise that more than a quarter of grocery sales in the U.S. are captured by the behemoth from Bentonville. Not only is Walmart everywhere, but its commitment to grocery continues to grow, with an expanding assortment including a fresh food footprint that rivals its grocery-only competitors. In addition, its digital capabilities are segment-leading and earning devotees at a staggering rate.

Just two years ago, Walmart was in third place in digital market share, trailing the national grocery brands and third-party fulfillment providers. This year, however, it claimed the top spot, narrowly overtaking the national brands, and is projected to own more than 40% of the digital grocery space by the end of the decade.

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#3 Omnichannel Shoppers Spend More

Digital grocery is difficult to execute, expensive, and often margins are below the breakeven point. So why are grocers committed to growing their offerenings?

Online-only shoppers spend $659 per month with an average margin of -1.7% — making its current incarnation an unsustainable undertaking. At the other end of the spectrum, in-store-only consumers spend $669 per month with an average margin of 50.8%.

However, omnichannel grocery shoppers spend $1,043 on average monthly, with a 25.6% margin. Consumers who shop both online and in-store spend 1.5x more than single-channel shoppers.

#4 GLP-1 Influences Assortment

The popular weight loss and diabetes drugs are not only helping to shrink waistlines but are changing users’ shopping habits and, consequently, grocery assortments. According to the latest KFF Health Tracking Poll, 12% of adults have taken a GLP-1 agonist, and 6% are currently taking such a drug.

According to Grocery Doppio’s research, 97% of GLP-1 users reduced their grocery spending after taking the drug by an average decrease of 11%. Unsurprisingly, snacks, confectionaries, baked goods, and soda/sugary beverages were the products that GLP-1 users scratched from their shopping lists most frequently. Users added an increase of lean protein, meal replacements, and healthy snacks to complement their new health consciousness.

To capitalize on this trend, 77% of grocers plan to expand and deepen their assortment, 71% plan to increase their digital marketing efforts promoting food as medicine, and 43% plan to provide in-store nutrition education.

#5 Grocers Struggle With Digital Profitability

The necessary technological infrastructure, staffing requirements, last-mile fulfillment costs, and other associated overhead make digital grocery an expensive undertaking. Grocery is already famous for slim margins, but when digital challenges are added to the mix, margins often go from slight to non-existent.

Currently, more than half (51%) of grocers report losing money or making less than 10% average margin per online order, but there is cause to be optimistic. Over the past three years, the losses associated with delivery, website pickup, and overall digital orders have all decreased.

Since 2021 grocers' delivery losses have decreased by 15.4%, website losses by 9.8%, and overall digital order losses by an impressive 23.9%.

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