Metro East Sun

In the midst of a post-pandemic era characterized by soaring inflation and exorbitant interest rates, Americans are embracing the convenience of having groceries, meals, and household items delivered to their doorsteps. According to a recent survey by LendingTree, the average customer of delivery services is now spending over $400 per month in 2023, a significant increase from $157 per month in 2021.

The surge in online food delivery has been remarkable, with revenues reaching $160 billion in 2022. Projections indicate that this figure is set to rise even further, reaching $484 billion by 2032. Interestingly, delivery fees, service fees, and tips account for approximately 36 percent of the total cost of food delivery, with the average consumer spending approximately $1,850 per year on this service.

Undoubtedly, the coronavirus pandemic and subsequent government-imposed lockdowns played a pivotal role in the explosive growth of grocery delivery and pickup sales in the United States. In August 2019, sales stood at $1.2 billion, but by June 2020, this figure had skyrocketed to an impressive $7.2 billion. Although sales have since plateaued, they remain consistently above $5.3 billion per month. The sector reached an all-time high of $7.6 billion in December 2022, with the latest figures from May 2023 standing at $5.7 billion.

For seniors and individuals who are homebound, there are numerous options available to receive free home delivery of groceries. The federal government's Supplemental Nutrition Assistance Program (SNAP) allows seniors to authorize a trusted individual to use their EBT card for grocery shopping on their behalf. Other government programs such as Meals on Wheels, Commodity Supplemental Food Program, and local Area Agencies on Aging also provide assistance. Community resources like food banks, churches, non-profits, and senior centers are additional avenues for free grocery delivery. Private companies such as Amazon and Instacart also offer free delivery options.

Apart from Amazon and Instacart, there are several other popular grocery delivery services, including Shipt, Burpy, Jet, and FreshDirect. Additionally, meal kit delivery services have gained popularity, offering pre-portioned ingredients for recipes that cater to the needs of seniors and other individuals. Prepared meals are also readily available from various businesses.

The pandemic not only led to a significant increase in online spending by U.S. consumers but also transformed their grocery shopping habits. Between March 2020 and February 2022, Americans spent a staggering $1.7 trillion online, with $32 billion attributed to skyrocketing inflation. This represents an increase of over $600 billion compared to the combined spending of 2018 and 2019. It was anticipated that spending would surpass $1 trillion in 2022.

As Americans navigate the challenges brought about by the pandemic, the demand for grocery delivery services shows no signs of slowing down. With convenience and safety at the forefront of consumers' minds, the industry is poised to continue its upward trajectory, providing an essential lifeline for those in need of home delivery options.

For additional details, please follow this link: https://repelik.com/2023/12/18/pandemic-sparks-explosive-increase-in-grocery-delivery/