Online Grocery Market Share by Company
With an increasing number of people shopping for groceries online, it should come as no surprise that the online grocery market in the United States is set to hit $160.9 billion in 2023.
But just what are US consumers’ preferred online grocery stores? Here’s a breakdown of the online grocery market share by company.
Online grocery market share: top 6 companies
According to a recent analysis, Walmart has the largest online grocery market share out of all businesses selling groceries online. Its share is set to hit 25.7% in 2023—a 0.2 percentage point increase from the previous year. This means that more than $1 out of every $4 consumers spend on buying groceries online this year will be on Walmart.
This is also the third year running that Walmart’s held the biggest online grocery market share, after it surpassed Amazon in 2020 to take the top spot. Apart from a marginal one percentage point fall in 2021, Walmart’s online grocery share has been increasing every year since 2017. In fact, its market share in 2023 marks an 8.6 percentage point increase from its 17.1% market share in 2017.
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Second on the list ranking online grocery market share by company is Amazon, with 22%. Contrary to Walmart, Amazon’s online grocery market share has mostly been falling over the past few years. In 2017, it had a market share of 24.2%.
Instacart follows close behind in third place, with a share of 21.8%, a slight 0.2 percentage point increase from 2022. Of these top six online grocery companies, Instacart is the only one that has not experienced any annual declines in its market share since 2017. That said, analysts predict Instacart’s market share will dip marginally, by 0.2 percentage points, to 21.6% in 2024—the company’s first and only decrease forecast in eight years.
Together, Walmart, Amazon, and Instacart’s market shares total 69.5%. In other words, nearly two-thirds of the expected online grocery expenditure in 2023 is set to be on these three companies.
The Kroger Co. is the company with the fourth-largest online grocery market share. At 9.9% in 2023, it’s has a fractional 0.1 percentage point increase from the previous year. Target and Albertsons Companies wrap up the list, with market shares of 4.8% and 3.4%, respectively.