Categories are by far the most useful features of grocery list apps. Categories are really store departments. Think of the Produce department, the bread isle, the meat department, or the cheese section. Your grocery list app should have all these store departments loaded as categories, and you can associate your items to these categories. When your looking at your list, you have a button that will group all of your items based on category.
The benefit to this - when you're in the produce/fruits section, you get put ten or twelve things in your cart while you are there instead of having to crisscross the store because your items are out of order with the store departments.
Custom Categories
Some apps automatically choose a category for you, but it may not fit the store where you are shopping. Categories are an estimate of where an item may fit, but it isn't always perfect. Some apps (like SwiftLists) allow you to create custom categories. They can be whatever you want, and it's especially helpful if you shop at different types of stores. Most of the categories in SwiftLists are pretty basic - so you may want to add your own.
This feature is especially helpful when your lists get really long. Maybe you are shopping for a lot of people and only go to the grocery store once every week or even every two or three weeks. You might have a very long list, and it's super helpful to group these items by department. It just makes shopping much faster.