Food and drug merchants grow fastest among Mid-Market 500 companies, even as Internet Retailer and Bizrate Insights find 81% of consumers prefer to shop for food in stores.

Things are looking up for online food e-retailers, as new Internet Retailer data shows that consumers are increasingly turning to the web for their food purchases. That’s one of the principal takeaways of Internet Retailer’s just-released Mid-Market 500, which ranks top small and mid-sized online merchants, or those that brought in anywhere from $4 million to $35 million online last year.

The web sales of 24 e-retailers in the category grew collectively 19.7% in 2016—around five percentage points faster that the much larger Top 500 retailers in the same category. And moreover, food was one of the fastest growing of all 15 product categories Internet Retailer tracks in the Mid-Market 500.

That’s thanks in part to standouts including meal kit retailers Chef’d (No. 838 in the Internet Retailer 2017 Top 1000), Chef’s Plate (No. 661) and Green Chef Corp. (No. 683)—all of which posted giant sales gains last year.

Food has been one of the slowest retail categories to shift online. Even now, more than 81% of respondents mentioned groceries among the kinds of items they prefer purchasing in stores, as opposed to online, according to an exclusive survey of 2,815 U.S. consumers from Internet Retailer and Bizrate Insights.

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However, that’s starting to change as consumers grow comfortable buying food online. As many as 70% of U.S. consumers will buy groceries online by 2025, according to a recent report from supermarket trade group Food Marketing Institute and The Nielsen Co. Those purchases are expected to total more than $100 billion. That would give online shopping a 20% share of consumer food and beverage spending, or about five times the current level.

The Mid-Market 500 report shines a spotlight on the retailers in the middle of the pack, many of them newcomers attuned to the new ways consumers—especially younger ones—are using the web, and crafting businesses that cater to today’s shoppers. Ranked between 501 and 1000 in the Internet Retailer Top 1000, these merchants, for the most part, aren’t trying to sell a wide variety of merchandise. They’re often succeeding, as T-shirt e-retailer Ivory Ella (No. 875) demonstrates, by finding a niche largely neglected by larger players.

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