Food Industry Shifts Under Surge in Online Demand

8 Apr 2020


The food industry is undergoing significant disruption from COVID-19, as U.S. consumers increasingly have groceries delivered directly to their homes (D2C) or are buying online and picking up in store (BOPIS). According to Adobe’s Digital Economy Index, the U.S. grocery industry had a 100% increase in daily online sales between March 13 and 15, compared with the baseline period of March 1 to 11.1 Furthermore, a Brick Meets Click/Shopper Kit survey found that 46% of respondents will continue to purchase goods online after the pandemic subsides.2

Considering that 95% of food produced in or imported to the U.S. goes through third-party distribution centers before reaching consumers, this shift undoubtedly will impact the cold storage sector. CBRE Research explored the relationship between e-commerce grocery growth and cold storage warehouse capacity in its Food on Demand Series: Cold Storage Logistics Unpacked report, concluding that an additional 75 million to 100 million sq. ft. of freezer/cooler space will be needed to meet demand for D2C food delivery and BOPIS.3 The COVID-19 pandemic is accelerating this trend.

Click here to read full article from CBRE. 

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