Although e-commerce accounts for less than 1% of total retail sales in the category, one segment, online grocery, has seen an uptick in recent years. Online-only grocery services like Peapod LLC and FreshDirect LLC have proven that the business model can work, prompting large traditional retailers to begin selling online. Among the entrants in online grocery in recent years have been Wal-Mart, The Kroger Co. and Albertsons. Online grocery sales grew by more than 150% in 2016, according to Morgan Stanley estimates.

See below for a snapshot of the U.S. online food and drug industry. This includes data from merchants ranked in the Internet Retailer 2017 Top 1000, including those in the following segments:

    • Candy/Sweets
    • Coffee/Tea
    • Drugs/Pharmacy
    • Grocery/Fresh Food
    • Wine/Spirits

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