A fresh look at online food delivery and grocery trends

The world is experiencing a digital shift, with everyday chores and activities being completed with the help of apps and online platforms.

In our busy day-to-day lives, we’re finding that what used to take getting into a car and driving to a store can now be ordered and paid for through an app with the swipe of a finger. This is especially true in the grocery and food industries.

Over the past several years, we’ve seen the rise of options like buy online, pick-up in-store (BOPIS), meal kits, and replacement shopper services that deliver meals and groceries right to our doorsteps. Add a global pandemic, and we see a more bolstered push towards online grocery shopping and food delivery.

To help illustrate this new digital and delivery-based landscape, PayPal commissioned the Maru Group to conduct a study focused on understanding consumer trends in the space.

The evolving grocery and food landscape

The study included 1,000 participants in the United States who were household decision makers and who ordered groceries, meal kits and/or food delivery online. It provides fresh insights into consumer behaviors and how grocery and food delivery enterprises may be able to turn challenges into opportunities:

  • The biggest challenges for online grocery are around quality and the experience of picking food, with 89% saying they would like to see the food before deciding whether to buy it, 85% feeling grocery shopping in-person jogs their memory about products needed, and 82% concerned they may not get the freshest produce.1
  • Contactless payment technologies, like QR codes, are a must to reach and retain the digital-savvy shopper: 17% of surveyed shoppers have used QR codes for payments and 86% of those who have used QR codes for payments indicate they will continue doing so.1
  • The shoppers of today may now demand a digitally enabled experience to meet their need for convenient, time-saving food options.1
  • Online shopping is convenient and time-saving: 49% of those surveyed feel that shopping online for groceries helps save time.1
  • Budget-conscious consumers are also spending time and energy to save money: 54% of shoppers surveyed will spend time looking for the best deals offered by multiple providers for both food and grocery orders, and 55% consolidate purchases into one large order to minimize spend on delivery fees.1

As today’s shoppers continue on their digital journey in their daily lives, companies must reach them where they are in the digital world and cater to their preferences. There’s no doubt that digital options are gaining popularity and creating opportunities for the food and grocery sector to deliver directly to their customers.

Change is never easy – knowing what to invest in, and when, can be challenging when balancing immediate needs and long-term success. As the industry itself digitally upskills and evolves, grocers need commerce solutions that scale, grow, and evolve with their business. Offering different and preferred payment options can help reduce cart abandonment and drive customer conversion, meaning more happy shoppers using online grocery and food delivery services.

With over 20 years of experience and more than 3 trillion transactions processed, PayPal has the know-how that may help your business thrive. See how PayPal’s flexible stack of payment solutions can help you grow your business and optimize your operations.

A Fresh Look at Online Food Delivery and Grocery Trends (PDF)

A Fresh Look at Online Food Delivery and Grocery Trends (PDF)

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