Online Grocery Market Size, Share, Growth, Trends, and Forecast Report 2032

Online Grocery Market Insights

Zion Market Research has published a report on the global Online Grocery Market, estimating its value at USD 321.60 Billion in 2023, with projections indicating that it will reach USD 2667.70 Billion by 2032. The market is expected to expand at a compound annual growth rate (CAGR) of 26.5% over the forecast period 2024-2032.

The report explores the factors fueling market growth, the hitches that could hamper this expansion, and the opportunities that may arise in the Online Grocery Market industry. Additionally, it offers a detailed analysis of how these elements will affect market demand dynamics and market performance throughout the forecast period.

Request Free Sample

Online Grocery Market Size & Overview

Technological advancements, continued urbanization, and a paradigm shift in consumers' shopping habits drive the preference for grocery shopping through online channels. Innovative business models, such as slotted or express delivery and on-demand or subscription delivery models, being introduced by grocers are also encouraging consumers to opt for online grocery shopping. Attractive discounts offered by service portals and the rising levels of disposable income also play a vital role in driving the market's growth.

Various delivery options, such as immediate or same-day delivery and click & collect are an uptrend favoring the market's growth. For instance, in the U.S., grocers offer contactless grocery delivery and fast-tracking the delivery to next-day or same-day delivery. It encourages small-scale grocers to join forces with third-party service providers, such as Instacart, and make a foray into the market. Food-delivery platforms, such as Swiggy and DoorDash, delivering online grocery is opportunistic for the growth of the market.

The pandemic outbreak has particularly driven the preference for online grocery shopping. Easy availability of time slots, lower service fees, and the convenience associated with picking up the grocery while on the way are encouraging individuals to opt for click & collect services, book the grocery online, and pick up the grocery they ordered at their convenience while avoiding crowds. As a result, grocers are rapidly building click-and-collect capabilities to ensure a convenient and robust customer experience throughout their network of groceries.

With onset of COVID pandemic, the grocery landscape is likely to experience a huge transformation in the coming decade. Reportedly, consumer behavior is changing drastically and nearly 42% of U.S. grocery shoppers have done online shopping for the first time in a pandemic. The online grocery market is likely to gain traction with customers shifting to dining at home and trying new channels of buying along with new food products. Thriving grocery e-Commerce and mobile commerce sectors has further added to the popularity of online grocery business in both developing countries as well as developed economies. For the record, post-coronavirus outbreak, the sales of meal kits went up by nearly 40% to 60% in developed countries. This, in turn, will steer the online grocery market demand in the next decade.

Furthermore, grocery retail stores are focusing on at-home dining activities due to the recent at-home eating trend of consumers in countries of Europe and the U.S. due to the COVID pandemic. Moreover, early adopters or early movers in the grocery retailing business will gain profits and expand their business through sales of groceries online.

Request Free Sample

Online Grocery Market Dynamics

Due to the inception of click and collect model, the online grocery market is expected to witness a huge upswing in growth within the span of the next few years. With firms providing discounted offers, replacements, and high quality along with a slew of products to the customers, the online grocery market is projected to reach scalable heights over the assessment timeframe. Today, players are focusing on profit optimization by determining of the dominant strategies by using a payoff matrix. This is likely to drive the growth of the online grocery market over the forecast timeframe.

Furthermore, strict laws forcing consumers to follow social distancing norms in COVID-affected countries like the UK, the U.S., Italy, France, Spain, Brazil, India, and China will have a favorable impact on the market growth over the forthcoming years. The need for reshaping channels to improve grocery e-commerce activities, repositioning of business for reinforcing online business capabilities, and reimagining offerings to make alterations in the value proposition for fulfilling changing food requirements of consumers is projected to help the online grocery market to reach the highest peak of growth in the foreseeable future.

Asia Pacific Market To Register Exponential Growth Over 2024-2032

The growth of the online grocery industry over the assessment timeframe can be credited to the surging per capita income of the consumers in the sub-continent. Moreover, the strict actions taken by the governments to promote digitalization in the countries have fueled the online grocery industry expansion. The rise in the number of e-commerce websites and retail stores will prompt the regional online grocery market growth during the assessment period.

Online Grocery Market: Report Scope

Key participants profiled in the report include

• Amazon.com, Inc.,
• Grofers India Pvt. Ltd.,
• Bigbasket,
• Alibaba.com,
• AEON Co., Ltd.,
• Instacart,
• JD.com, Inc.,
• Walmart,
• Target Brands, Inc.,
• Tesco.com, and Rakuten.

The global Online Grocery market is segmented as follows:

By Product:

• Breakfast & Dairy
• Fresh Produce
• Meat & Seafood
• Staples & Cooking Essentials
• Snacks & Beverages
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa