Online Grocery Market

Online Grocery Market Size, Share, Trends, Growth, and Industry Analysis, By Product Type (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, Baby Food and Care), By Delivery Type (Instant Delivery and Schedule Delivery), and Regional Insights and Forecast to 2032

Consumer Goods & Services | January 2024 | Report ID: EMR00465 | Pages: 301

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 internet 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

Report Attribute

Details

Estimated Market Value (2023)

52.18 Bn

Projected Market Value (2032)

468.75 Bn

Base Year

2023

Forecast Years

2024 - 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Product Type, By Delivery Type, & Region

Segments Covered

By Product Type, By Delivery Type, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global 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.

 

Global 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 modern, 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 internet 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 modern 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 turn 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 concerns about the alleged drawbacks of online grocery shopping. Examples of these solutions include thorough product descriptions, crisp images, and clear return 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 morning 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.

 

Global 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 internet 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.

 

Global 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.

Some of the prominent players in the global online grocery market include,

  • 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.

 

Global 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.

 

Scope of the Global Online Grocery Market Report

Online Grocery Market Report Segmentation

ATTRIBUTE

DETAILS

By Product Type

  • 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
  • Baby Food and Care

By Delivery Type

  • Instant Delivery
  • Schedule Delivery

 

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Online Grocery Market Size and Forecast: To identify and estimate the market size for the global online grocery market segmented by product type, by delivery type, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of online grocery between 2019 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for the global online grocery market
  • Market Influencing Factors: To find out the factors which are affecting the sales of online grocery among consumers
  • Impact of COVID-19: To identify and understand the various factors involved in the global online grocery market affected by the pandemic
  • Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Retailers and E-commerce Platforms
  • Supply Chain and Logistics Providers
  • Market Researchers and Analysts
  • Technology Providers
  • Government and Regulatory Bodies
  • Entrepreneurs and Startups

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

On the basis of Geography, the online grocery market is classified into North America, Europe, Asia Pacific, and the Rest of the world.
According to online grocery market research, the market is expected to grow at a CAGR of ~27.6% over the coming years.
North America is expected to register the highest CAGR during 2024 - 2032.
Asia-Pacific held the largest share in 2023.
The major players operating in the global online grocery market include 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.