Demand for grocery delivery cools as food costs rise

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U.S. demand for grocery delivery is cooling as food prices rise. Some shoppers are shifting to less expensive grocery pickup, while others are returning to the store.

Experts say grocery delivery saw five years of growth in the first three months of the pandemic. In June 2020, grocery delivery was a $3.4 billion business.

But by June 2022, that had fallen 26%.

Consulting firm Chase Design says it’s hard to get the delivery premium below $10 because of fuel and labor costs.

That premium is tough for some consumers to swallow when food cost inflation is at a four-decade high.

 
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