Online grocery sales saw a sharp year-on-year increase in July, reaching nearly $8 billion.

According to the monthly Brick Meets Click/Mercatus Grocery Shopper Survey conducted on July 30-31, 2024, the total U.S. online grocery market reached $7.9 billion in monthly sales in July 2024, up 9.2% year-over-year. Delivery sales increased 22% in July, helped by ongoing promotional efforts. Home shipping also posted strong results, increasing 6%, and pickup remained stable year-over-year.

The increase in total sales occurred after a Strong June for online grocerieswhen sales increased by 8% compared to the previous year.

July’s gains in Delivery were driven by continued efforts by major players to grow their delivery business in recent months. According to Brick Meets Click, Walmart offered a 50% discount on its Walmart+ membership in mid-July, reducing the annual fee from $98 to $49, after offering the same deal in May. Instacart offered an 80% discount on its annual membership. Both offers contribute to the growth of Delivery users and order frequency.

“Walmart and Instacart aren’t the only players using deep discounts to drive delivery demand,” says David Bishop, partner at Brick Meets Click. “For example, Amazon offered a 90-day free trial of Prime in July, up from the usual 30 days, along with unlimited grocery delivery. DoorDash and Uber Eats are also keeping low or no delivery fees to increase their market share.”