Significant Shift Towards Online Grocery Shopping Among Younger Consumers: Report

The study finds that quick and easy transactions and the sustainability measures undertaken for packaging and deliveries are likely to positively impact the online purchase of groceries.

The research team comprised experts from India and Portugal.

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Lucknow: A collaborative research group comprising members from the Indian Institute of Management Lucknow, Indian Institute of Management Nagpur, Amrita School of Business, Coimbatore and IPAM Lisboa - Marketing Business School has recently conducted a comprehensive review study focusing on online grocery shopping (OGS) trends over the last two decades. Their findings indicate a noteworthy shift towards OGS among younger consumers, primarily motivated by the convenience of online payment methods and environmentally-friendly delivery options.

Over the past decade, online grocery shopping has surged due to its availability and quick delivery, particularly appealing to smartphone users in metropolitan areas. As per the study, young consumers aged 21–40 have become the primary users of OGS, marking a shift from the elderly consumers as pointed out by research studies in the early 2000s. 

The study, published in the journal, Electronic Commerce Research, analyses 145 research articles published between 2000 and 2023 across 27 countries. It identifies 50 theories employed to understand OGS habits, with a notable uptick in research between 2010 and 2014 during the online shopping boom. Sustainability practices, such as reducing ‘food waste’ and efficient ‘e-grocery delivery routing,’ gained prominence after the launch of the Sustainable Development Goals (SDGs) in 2015.

Emphasizing the significance of this study, Dr. Arvind Shroff, Assistant Professor, Operations Management at IIM Lucknow and one of the authors of the research, said, “This study contributes to our understanding of offline to online business models, with a specific focus on Online Grocery Shopping (OGS). The evolution of OGS is primarily driven by technological advancements such as smartphone penetration and internet accessibility, meeting consumers’ demand for choice and convenience. The study’s findings carry financial and operational implications for supermarkets adopting a dual-channel approach, integrating online and offline businesses.”

The study has also found the factors influencing OGS behaviour include age, gender, income, pricing, discounts, delivery fees, transaction costs, advertising, promotions, information quality, and sustainability measures. Hassle-free online payments and peer ratings play a critical role in shaping consumer preferences for online grocery shopping. Overall, the traits of choice and convenience enabled by these online platforms for the shopping of groceries have positively impacted the purchase intentions of consumers.

The researchers recommend further qualitative research to better understand the online shopping phenomenon and suggest a mixed-method approach to explore underlying factors influencing OGS behaviour. In conclusion, this comprehensive study serves as a crucial reference point for businesses, policymakers, and academics seeking to understand and adapt to the changing consumer landscape.