Online Grocery Market

Global Online Grocery Market size was USD 52.18 billion in 2023 and is predicted to reach USD 468.75 billion in 2032, exhibiting at a CAGR of 27.6% ,during the forecast period.

The way people buy necessities has been completely transformed by the inte et grocery industry, which offers a quick and easy substitute for traditional brick-and-mortar businesses. Due to user-friendly platforms and mobile applications, clients can now explore, choose, and buy goods from the convenience of their homes because of technological advancements. With a wide range of products ranging from fresh fruit to pantry essentials, this emerging industry promotes doorstep delivery and time-saving options. The recent surge in the online grocery industry is indicative of a change in customer behavior, with an emphasis on the value of choice, accessibility, and smooth shopping experiences in today',s economy.

ONLINE GROCERY MARKET: REPORT SCOPE &, SEGMENTATION

Online Grocery Market Dynamics

Technical developments have made digital transactions more smooth and user-friendly interfaces more accessible, but shifting consumer habits and the COVID-19 pandemic',s lasting effects have hastened the adoption of online food shopping. The fierce rivalry between established merchants and e-commerce behemoths has prompted a steady advancement in pricing schemes, delivery methods, and company models. In the quickly growing world of online grocery retail, the market',s responsiveness to environmental issues and emphasis on supply chain optimization demonstrate a commitment to meeting shifting consumer expectations.

 ,Online Grocery Drivers

• Convenience and Time-Saving Solutions

The convenience of browsing and buying a wide variety of foods while on the go, in addition to the convenience of shopping from home or on the go, appeals to the mode , time-pressed lifestyle. Online platforms offer a smooth experience, saving time and effort compared to traditional brick-and-mortar retailers by enabling consumers to make shopping lists, save preferences, and enjoy quick doorstep delivery.

Online grocery shopping is becoming a more popular option for customers looking for a hassle-free and time-efficient shopping experience as a result of this driver, which takes advantage of the growing desire for effective and convenient solutions.

• Changing Consumer Behaviour

A notable movement towards inte et shopping has been driven by changing lifestyles, growing digitalization, and the ongoing effects of global events like the COVID-19 pandemic. Nowadays, customers value time savings, convenience, and safety above all else, which has led them to appreciate the simplicity and accessibility provided by online grocery delivery services. Online grocery shopping is an essential reaction to the changing tastes and expectations of the mode marketplace. Consumers', growing comfort with digital transactions and their desire for a wide variety of products are two factors that contribute to this trend.

Restraints:

• Delivery Challenges and Delays

Factors like intricate logistics, unexpected outside circumstances, and the requirement for effective last-mile delivery systems all play a part in service interruptions. Delivery delays can irritate customers and lower their opinion of the dependability of online food delivery services. It becomes imperative to keep delivery timetables consistent, any deviations from this might damage credibility and tu off potential customers. To overcome these obstacles and raise the general dependability of online grocery services while managing client expectations, strong delivery infrastructure, and efficient communication tactics are needed.

• Limited Touch-and-Feel Experience

Customers cannot physically view products before making a purchase, which raises questions over the quality and freshness of the merchandise in contrast to traditional brick-and-mortar retailers. For people who prefer a tactile shopping experience in particular, this lack of sensory engagement presents a difficulty and may reduce their confidence while making purchases online. To overcome this restriction, creative solutions are needed to close the gap between the virtual and real-world shopping experiences and allay consumer conce s about the alleged drawbacks of online grocery shopping. Examples of these solutions include thorough product descriptions, crisp images, and clear retu policies.

Opportunities:

• Subscription Models and Loyalty Programs

Businesses can provide loyalty programs or subscription-based services to improve client retention and build brand loyalty. These programs reward customers for making additional purchases by offering them discounts, special offers, or customized perks. The online grocery platforms are financially stable in part because of the steady stream of cash they receive from subscriptions.

Additionally, these programs help companies collect important client information, which enables customized experiences and focused marketing campaigns. Online grocery retailers can use the creation of creative and alluring subscription plans and loyalty schemes as a tactical tool to forge enduring bonds with their clients and improve their competitive standing.

• Supply Chain Optimization

Supply chains can be made more efficient and streamlined to save money, speed up deliveries, and satisfy customers more thoroughly. Online grocery platforms can provide seamless inventory management, minimize waste, and optimize the last-mile delivery process by utilizing technology, data analytics, and creative logistics solutions. This improves operational efficiency and puts companies in a better position to satisfy the ever-increasing needs of customers for dependable and timely services. Online grocery retailers can use supply chain optimization as a tactical tool to improve consumer satisfaction, obtain a competitive advantage, and foster long-term success in the ever-changing market.

Segment Overview

• By Product Type

Based on product type, the global online grocery market is divided into fresh produce, staple and cooking essentials, household and cleaning products, beauty and personal care, pet food and care, bakery and confectionery, dairy products, breakfast and cereal, and baby food and care. The staple and cooking essentials category dominates the market with the largest revenue share in 2023. This group includes staples such as rice, pasta, cooking oils, spices, and other necessities for the kitchen. Online grocery delivery services offer a wide range of options to meet consumers', basic pantry and kitchen requirements.

Online grocery stores also carry cosmetics, personal hygiene goods, skincare and haircare products, and other beauty and personal care products. This category includes breakfast essentials such cereals, oats, granola, and other options for mo ing meals, giving customers a variety of options to suit their preferences. This area, which caters to the needs of parents, contains diapers, wipes, baby food, formula, and other necessities for the upbringing and care of young children.

• By Delivery Type

Based on the delivery type, the global online grocery market is categorized into instant delivery and scheduled delivery. The scheduled delivery category leads the global online grocery market with the largest revenue share in 2023. With scheduled delivery, clients can designate particular days or times for their grocery items to be delivered. Consumers are able to schedule the delivery of their goods at a convenient time by planning their purchases ahead of time. The goal of instant delivery, sometimes referred to as on-demand or rapid delivery, is to give consumers the shortest possible grocery delivery. Customers using this approach can place orders and get their products quickly often in a matter of hours or even minutes.

Online Grocery Overview by Region

The global online grocery market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific emerged as the leading region, capturing the largest market share in 2023. E-commerce has grown rapidly in the region due to factors such as increasing digital penetration, a growing middle class, and rapid urbanization. Online grocery shopping is becoming more and more popular among consumers in Southeast Asian, Chinese, and Indian countries due to its convenience.

The region',s popularity is also attributed to advances in technology, a strong logistics infrastructure, and changing consumer preferences. Due in large part to the enormous market potential and the proactive investments made by both domestic and foreign companies, Asia-Pacific leads the global online grocery business. ,Throughout the forecast period, North America is anticipated to post a significant CAGR. Numerous factors, such as the region',s highly developed digital infrastructure, high inte et penetration rate, and the expanding acceptability of online shopping, have an impact on this estimate.

The online grocery industry has experienced considerable growth due to the acceleration of e-commerce adoption brought about by shifting customer preferences, particularly after the COVID-19 epidemic. In addition, technology developments, proactive responses to changing consumer needs, and market leaders', strategic activities all contribute to the expected strong growth of the online grocery market in North America throughout the projection period.

Online Grocery Competitive Landscape

In the global online grocery market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Online Grocery Market Leading Companies:

• AEON CO., LTD.
• Alibaba.com.
• Amazon.com, Inc.
• Blink Commerce Private Limited
• Instacart
• JD.com, Inc.
• Natures Basket Limited.
• Reliance Retail.
• Supermarket Grocery Supplies Pvt Ltd
• Target Brands, Inc.
• Tesco.com
• The Kroger Co
• Walmart, and various others.

Online Grocery Recent Developments

• In June 2023, In New Zealand, Woolworths Group Limited released the MILKRUN application. Customers will be able to place orders with this application in a matter of minutes, and it will provide an incredibly convenient experience.
• In April 2023, A partnership was formed between Woolworths Group Limited and Takeoff Technologies, a provider of micro-Fulfillment eGrocery solutions. This alliance will improve the online purchasing experience for customers.
• In February 2023, the online grocery firm FreshToHome received funding from Amazon.com, Inc. It will increase its market share in perishables for clients in India and the UAE with this investment.
• In January 2023, J Sainsbury plc. and Just Eat Takeaway, an online meal delivery service, have teamed. This arrangement will enable faster grocery delivery to homes.
• In April 2022, BigBasket declared that it would take advantage of the rapidly expanding Indian market by expanding its quick commerce company there. The company plans to construct 700 offline outlets as part of this growth to serve the whole grocery retail market.

Online Grocery Market Report Segmentation