Online Grocery Market Size, Share, Growth, and Industry Growth by Type (Packaged Foods and Fresh Foods), By End Users (Personal Shoppers and Business Customers), Regional Forecast To 2032

Updated On: 08 April 2024

Online Grocery Market REPORT OVERVIEW

• 
• Request a Free sample to learn more about this report

The global online grocery market size was USD 52000 million in 2023 and is projected to touch USD 177744 million by 2032, exhibiting a CAGR of 14.6% during the forecast period.

Online Grocery refers to the shopping of groceries using web-based purchasing. The way of buying groceries has evolved over the period of time.  Global Online grocery shopping is done through two methods, either people buy the groceries from a local shop that conducts online shopping or order the groceries at the comfort of home from huge companies such as Amazon, Coles, etc. and get them delivered at home. Online grocery encompasses products like grocery products and non-grocery products such as vegetables, fruits, and dairy products . Grocery items can be ordered through an e-commerce website or specific applications. 

Online Grocery is gaining recognition day by day as it offers the option of getting groceries at home. Adoption of online groceries can be seen amongst hard-working families and the busy population. People who are limited in terms of transportation or don’t have time to buy the products have been using these services. Retailers offer a variety of click and collect options, choices, subscriptions, and a wide variety of products to attract consumers. The market has gained traction owing to changing lifestyles, urbanization, and technological advancements. Several countries believe that online grocery shopping is a very successful concept and is expected to grow continuously. 

COVID-19 Impact: Social Distancing Led to Market Growth

The outbreak of COVID-19 is already being felt around the world, and the global online grocery market is considerably influenced. In 2020, COVID-19 had a negative impact on many markets. Several countries went into lockdown. With the sudden pandemic, all kinds of businesses witnessed disruptions. With the need for social distancing in this pandemic, there has been a preference for online delivery of grocery products. The increasing visibility of online products was seen during the pandemic as consumers had the option of eliminating the physical movement. Consumers turned their focus on online shopping which turned out to be not only convenient but also safe. Novel COVID-19 pandemic changed consumer behavior, where many consumers tried online shopping for the first time and they are also expected to continue this practice. With steady growth during the pandemic, this market is projected to witness an increase in demand. 

LATEST TRENDS

"Enhancing Customer Experience to Propel Demand"

The trend that can impact the global online grocery market is providing the best customer experience possible. E-commerce has grown and has drastically transformed retailing. The shift in consumer habits has proved that e-commerce is here to stay. In addition to this, the integration of e-commerce with grocery stores is rising day by day. For a long time, grocery businesses have been building and optimizing their e-commerce businesses and providing incredible customer experiences. The uprising trend is not just to adapt e-commerce but also to fulfill the capacity to fulfill customer demand with profitability. The focus is on increasing basket size that will increase the capacity of the basket and lead to customer satisfaction. This has been the way to enhance the customer experience.          

Online Grocery Market SEGMENTATION

• 
• Request a Free sample to learn more about this report

• By Type

According to type; the market is divided into packaged foods and fresh foods.

Packaged foods are the leading part of this segment. Packaged foods hold a major part of this segment owing to the wide variety of food products offered. It includes bread, tinned vegetables, dairy products, meat products, cakes and biscuits, ready-to-eat meals, and much more.  

• By End Users

Based on the application; the market is divided into personal shoppers and business customers.

Personal shoppers are the leading part of this segment.

DRIVING FACTORS

"Rise in Disposable Income to Drive Demand"

The global online grocery market growth is due to the rise in the disposable income of the population. People nowadays want products according to their comfort. Online grocery shopping has become an easy and convenient option for many people, as it saves time and people are more willing to spend money on services they can get easily. For which they are also willing to pay a bit more than usual. Rising urbanization has led to growth in standard of living which has ultimately led to a rise in incomes. Rapidly growing standard of living in middle-class population and advancements in internet infrastructure has supported in the growth of the online grocery market. People want to order products from the comfort of home and are willing to dispose of their income a little bit more as they are relieved with physically going to the stores.  

"Investment in Automation to Fuel Demand "

The dynamics of global online grocery systems run on automation. From picking up orders to delivering those orders, the online grocery business is run on these two pillars.  To make more and more people adopt online shopping, large grocers are heavily investing in automation and technological advancements. Investing in automation can help such grocers to equate with the dense demand from consumers and gain a level playing field. Developed countries like the U.S., Canada, the U.K., etc. have already invested in automated pickup through robotics. The advent of such automation is expected to be a source for consumers’ convenience and they will turn to online groceries in the future.    

RESTRAINING FACTORS

"Increasing Storage and Delivery Costs to Hamper Market Growth"

Even though there are many factors that can propel the growth of the online grocery market. Storage and delivery costs can cause a decline in the demand for the market. One of the main restraints in online grocery shopping is that of rising storage costs, which is a result of fluctuations. Delivery costs can also vary from transportation costs, fuel costs, etc. There are many elements that can affect the costs like taxes, rent for storage space, maintenance, electricity, etc. which can directly affect the final prices of the products offered and on the delivery charges. These elements can lead to disinclination towards online grocery shopping and hamper the market growth. 

Online Grocery Market REGIONAL INSIGHTS

• 
• Request a Free sample to learn more about this report

"Asia Pacific to Lead Market Owing to Increased Digitalization"

Asia Pacific region holds the majority part of the global online grocery market share. It is expected to have considerable growth due to the initiatives taken by governments of countries like India and China. Initiatives to promote e-commerce and digitalization in their corresponding countries. This will promote rapid growth in digitalization and will support the expansion of the online grocery market. In countries like Japan, China, and South Korea online grocery is very popular.    

North America and Europe are also expected to have lucrative growth and opportunities in the forecast period.

KEY INDUSTRY PLAYERS

"Key Players to Boost Demand Leading to Market Growth"

The report delivers information about the list of market players and their working in the industry. The information is collected and reported with proper research, technological developments, acquisitions, mergers, expanding production lines, and partnerships. Other aspects examined for the global online grocery market include companies producing and introducing new products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• Carrefour (France)
• Kroger (U.S.)
• Tesco (U.K.)
• Walmart (U.S.)
• Amazon (U.S.)
• Target (U.S.)
• ALDI (Germany)
• Coles Online (Australia)
• BigBasket (India)
• Longo (Canada)
• Schwan Food (U.S.)
• FreshDirect (U.S.)
• Honestbee (Singapore)
• Alibaba (China)

INDUSTRY DEVELOPMENT

• January 2021: Walmart has announced that it is planning to expand its automated systems for online grocery orders of pick-and-pack shoppers. The company is planning to expand its high-tech systems that pick and pack online grocery orders. The company saw the orders in online groceries spike during the coronavirus pandemic and now is trying to keep its competitors at bay by keeping low costs.

REPORT COVERAGE

This research profiles a report with widespread studies that take into an explanation of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.