Omnichannel food retail goes mainstream: over 90% of consumers shop for groceries online and in-store

01.04.2025

by Sandra Katzenberger

Man holding a basket of groceries while a woman looks at her smartphone in the background; Copyright: Freepik

The boundaries between digital and in-store shopping continue to blur – even in the grocery retail sector. According to a recent study by FMI – The Food Industry Association and NielsenIQ (NIQ), over 90% of consumers now combine online and in-store shopping when purchasing groceries.

The joint study titled "Digital Engagement Transforms Grocery Shopping", which was first presented at FMI’s Midwinter Executive Conference, shows impressively that shopping behavior has changed significantly – and faster than originally predicted.

From prediction to reality – and beyond

Back in 2017, FMI and NIQ predicted that by 2025, the share of digitally engaged consumers would reach around 100 billion USD in sales or a 20% market share. The current forecast far exceeds this: By 2027, online grocery sales in the U.S. are expected to reach 388 billion USD – nearly 25% market share.

This development highlights how significantly digital touchpoints, such as retailer apps, e-commerce platforms, social media, and AI-based personalization, are influencing the shopping experience. The COVID-19 pandemic has further accelerated this shift.

“Consumers today seamlessly combine online and in-store experiences – and expect convenience, relevance, and trust,” explains Mark Baum, Chief Collaboration Officer at FMI. “Manufacturers and retailers need to leverage digital technologies more to meet these expectations.”

Kim Cox from NielsenIQ also emphasizes: “Digital interaction is no longer just a supplement – it’s a central driver of growth. The industry must strategically prioritize e-commerce and social commerce.”

Key insights from the study

Online is Growing Faster: While in-store still dominates, online channels are experiencing the strongest growth across all product categories.
Gen Z & Millennials as Drivers: Gen Z begins their customer journey almost exclusively online, heavily influenced by social media. Millennials show the highest online shopping activity.
Social Commerce Boom: 55% of respondents now make direct purchases via social media or livestreams.
Technology Use in Retail: 92% of retailers already use AI or digital tools for personalizing customer engagement – both online and offline.
Curbside Pickup More Popular Than Same-Day Delivery: 31% of shoppers use curbside pickup – more than same-day delivery (29%).

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Looking to Europe: where does Germany stand?

A person shows a smartphone with a delivery confirmation next to a box of groceries; Copyright: Freepik

In comparison to other European countries, Germany remains more cautious in online grocery retail – despite positive growth impulses. In 2024, the segment grew by 5.5%, making it one of the fastest-growing product categories in German e-commerce. However, online grocery retail remains a niche market compared to other product categories.

The long-term forecast is optimistic, though: Between 2024 and 2028, average growth of 11% is expected. Younger consumers, in particular, are driving this development – around 64% of 14- to 29-year-olds are inspired by social media when shopping.

The market is moving – and offers great potential for the grocery retail sector, which can impress with seamless omnichannel offerings, smart digital services, and a shopping experience that combines freshness, trust, and convenience across channels.

Connected commerce as a future strategy

The results of the study clearly show: To stay relevant in the future, retailers must enable channel flexibility, meaning seamless integration of online shopping, brick-and-mortar retail, and social commerce. Channel fluidity will become the key success factor – and will require a realignment of strategy, technology deployment, and customer experience design.

Sources: FMI Press release, Article Lebensmittelpraxis (German), Mintel Report (German)