Online grocery subscriptions are becoming increasingly popular, and Generation Z is by far the frontrunner.
In numbers
PYMNTS Intelligence’s “How the World Does Digital” study surveyed over 67,000 consumers in 11 countries accounting for nearly half of the world’s GDP about their digital habits.
The results showed that 15% of consumers use online grocery subscriptions weekly. Among Generation Z, this figure almost doubled to 28%. A comparable 25% of Millennials use these services every week. In contrast, only 12% of Generation X and just 4% of Baby Boomers do so.
For example, Generation Z consumers are 10% more likely than Millennials, 133% more likely than Generation X, and even 525% more likely than Baby Boomers to use these services.
The data in context
Companies are increasingly trying to capitalize on consumer spending on grocery subscriptions. In April, Amazon announced the launch of a new service available in over 3,500 locations across the U.S. The service offers Prime members unlimited free grocery deliveries on orders over $35 for an additional $9.99 per month, while Electronic Benefits Transfer (EBT) recipients can subscribe for $4.99 per month.
“Customers who prefer to buy their groceries more regularly – whether they have them delivered or pick them up – can save even more time and money with this new grocery benefit on our huge selection of nearly 100,000 food items,” Tony Hoggett, senior vice president of global grocery at Amazon, commented at the time.
In March, Target introduced its new paid membership, Target Circle 360, which offers free same-day delivery through the retailer’s on-demand delivery aggregator Shipt, which includes grocers, as well as free two-day shipping from Target.
“The new Target Circle experience is designed to evolve and grow with our guests, providing them with more value and convenience – no matter how they shop with us. So every visit feels personal, rewarding and made just for you,” said Cara Sylvester, the retailer’s executive vice president and chief guest experience officer, in a statement.
