FOOD E-COMMERCE MARKET REPORT OVERVIEW
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The global food e-commerce market size was USD 1,38,833 million in 2019 and is expected to reach USD 1116201.88 million by 2031, at a CAGR of 18.97% during the forecast period.
Food e-commerce is an online service that provides groceries and food items to consumers within the convenience of their homes. The rising demand for high-quality and healthy food products is expected to boost the demand for online shopping. E-commerce has evolved over the years by improving safety and improving accessibility. It is a convenient and effective means of shopping for groceries without the need for going to traditional outlets. Consumer's sedentary lifestyles and adoption of high-quality products and services are expected to boost the adoption of online retail. It enables consumers to shop anywhere with the help of their smartphones.
The emergence of several e-commerce platforms such as Amazon.com, Bigbasket, and others is expected to boost consumer's shopping experience. It enables manufacturers to reach a larger audience and satisfy consumer demand globally. It reduces the need for setting up shops physically and saves the companies' costs. These factors are likely to boost market development.
COVID-19 Impact: Extensive Adoption of Online Retail by Consumers and Manufacturers to Boost Industry Growth
The COVID-19 pandemic has negatively affected several markets globally. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
The COVID-19 pandemic negatively affected several markets globally. The sudden rise in COVID-19 infections has provoked governments to impose stringent lockdown regulations. Several shops and outlets have been shut down to avoid virus spread. As a result, the adoption of online retail eliminates the need for physically visiting shops personally. Governments invest rapidly in the development of digital infrastructure to simplify several operations and maintain smooth functioning. The dependence upon online retail has increased drastically because of its convenience and safety. Manufacturers set up websites and online retail is expected to boost the product's demand drastically. Rising smartphone sales and 5G infrastructure development are expected to boost the adoption of food e-commerce. These factors are likely to boost the market's progress during the pandemic.
"Emergence of Online Grocery Delivery Services to Fuel Market Growth "
The food e-commerce market is expected to grow positively because of the emergence of several online grocery delivery services. Grofers, Amazon.com, BigBasket, Sparinda, and others provide groceries online without the need for ringing the bell. The availability of a wide variety of products and cheaper prices is expected to boost the market growth. Several brands partner with e-commerce websites to increase their reach and avoid setting up facilities across the globe. A sedentary lifestyle and evolving buying preferences are expected to bolster demand for advanced delivery systems. Rising smartphone sales and adoption of high-speed data are expected to increase consumer's exposure to online retail services. Governments invest heavily in the development of online services to enhance FDI and improve digital infrastructure. It enables industries to work efficiently without the need for physical contact and boost their sales drastically.
Several manufacturers co-ordinate with services such as Amazon.com to sell their products online and widen market reach. Shopping sites boost companies' sales and improve their annual performance. For example, Walmart Inc. reported a spike of 97% during the second quarter of 2020 because of the adoption of online retail. These factors are likely to fuel the progress of the food e-commerce market.
FOOD E-COMMERCE MARKET SEGMENTATION
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- By Type Analysis
By type, the market is segmented into restaurant meal delivery, fresh ready-to-eat meals and meal kits, Dtc products, pickup, and grocery delivery.
Pickup and grocery delivery is the leading segment because of the rising demand for grocery deliveries. It is an extremely convenient and quick shopping alternative to traditional shopping and eliminates the need to personally visit shops. Food e-commerce websites offer an extensive variety of affordable and healthy products. These factors are likely to positively influence market growth.
- By Delivery Channel
By delivery channel, the market is categorized into home delivery and store pickup
Home delivery is the leading segment because of its convenience and quick delivery times. Inactive lifestyles and the adoption of work-from-home culture lead to the adoption of home deliveries. It enables consumers to order food or groceries anywhere and eliminates risks associated with physical contact during the pandemic. These factors are likely to influence industry growth.
- By End Users
As per the end-user, the market is bifurcated into businesses and households.
The household segment is expected to lead the market because of the rising demand for groceries and food delivery from households. The adoption of work-from-home culture has led to the adoption of online deliveries during the pandemic. The closure of restaurants and shops fuel online retail's adoption. They are extremely convenient and safer compared to traditional shopping, which, in turn, may propel the food e-commerce market development.
"Shopping Convenience and Quick Delivery Times to Foster Market Growth"
Food e-commerce is an extremely convenient shopping option for consumers because of its simplicity and accessibility. Online retail eliminates product limitations because of the availability of a huge variety of brands and products. The adoption of a healthy lifestyle has led to the adoption of several healthy food products and food supplements. Outlets such as Swiggy, Zomato, and others offer a wide variety of cuisines across the city and offer consumers a wide variety of choices. The incorporation of UPI, credit/debit card payment systems improves consumers' convenience and eliminates hassles. Further, the quick delivery systems and incorporation of drones are expected to boost online retail's adoption. These factors are likely to drive industry growth.
"Increasing Adoption of Smartphone and High-Speed Data to Improve Consumers' Accessibility "
Rising smartphone sales are expected to increase the consumer's exposure to e-commerce shopping sites. The emergence of several affordable smartphones with excellent features and internet services is likely to boost the number of e-commerce users. Dependence upon internet services is expected to increase the adoption of e-commerce websites. The development of 5G infrastructure and rising demand for high-speed data is responsible for the exposure to several internet services. Manufacturers create smartphone applications to improve their reach globally. The availability of several products and attractive pricing and marketing is expected to boost online sales. These factors are likely to drive the food e-commerce market growth.
"Concerns Regarding Frauds and Delivery Delays to Hinder Market Progress"
Increasing concerns regarding online frauds and scams are likely to lower the adoption of e-commerce platforms. Further, issues regarding damaged products and returns are expected to hinder the product's adoption. Additionally, delivery delays are expected to hamper the progress of online retail platforms.
FOOD E-COMMERCE MARKET REGIONAL INSIGHTS
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"Increasing Smartphone Sales and Evolving Consumer Lifestyles to Foster Market Growth in Asia-Pacific"
Regionally, the market is clubbed into Europe, North America, South America, Asia-Pacific, and the Middle East & Africa.
Asia-Pacific is projected to dominate the food e-commerce market share because of increasing smartphone adoption. Evolving consumer preferences and rising per-capita income have boosted the consumer's shopping capacity. Rapid digital infrastructure development and increasing 5G infrastructure development are expected to boost product demand. The rising development of e-commerce websites and services is expected to boost the market growth.
North America is expected to be the second-largest shareholder because of the rapid development of digital infrastructure. The development of digital infrastructure and increasing smartphone sales is expected to boost food e-commerce adoption. Increased spending capacity and evolving buying preferences lead to the adoption of online retail. These factors are likely to foster market growth.
In Europe, rapid urbanization and development lead to the adoption of online services. Evolving consumer lifestyles and the adoption of healthy food products are expected to fuel the market development. The adoption of healthy foods is expected to increase food e-commerce website's adoption. These factors are likely to foster market growth.
In Latin America and the Middle East & Africa, high purchasing power and evolving consumer's lifestyle is expected to boost the adoption of online retail.
KEY INDUSTRY PLAYERS
"Incorporation of Strategies for Increase Online Retail's Adoption to Help Companies Grow"
Prominent companies devise strategies such as research and development to improve their product's quality. It enables them to develop better services to meet consumer's requirements and improve their services. This strategy enables companies to improve their services and improve their brand image. Online retail companies adopt better features and services to improve consumers' shopping experience. Companies focus on improving their transport and storage facilities to maintain product quality.
List of Market Players Profiled
- Alibaba Group
- Albert Heijn
- JD.com, Inc
- August 2021: GS Retail Co., Ltd. entered into a partnership with two private equity firms to acquire Delivery Hero's Yogiyo food delivery app.
The report highlights the top segments and the latest market trends. It comprehensively studies the impact of COVID-19 and the driving and restraining factors. This report observes the strategies devised by the major players and the regional developments. Additionally, it informs the readers regarding the factors that are responsible for the progress of the industry.
Market Size Value In
US$ 138833 Million in 2019
Market Size Value By
US$ 1116201.88 Million by 2031
CAGR of 18.97% from 2019 to 2031
Historical Data Available
Type, Application & Region
Frequently Asked Questions ON Food E-Commerce Market
What value is the market expected to touch by 2025?
The food e-commerce market is expected to reach USD 3,93,657 million by 2025.
What CAGR is the market expected to exhibit by 2025?
This market shall exhibit a CAGR of 18.97% during the forecast period.
Which are the driving factors of the market?
Increasing adoption of smartphones, high-speed data consumption, shopping convenience and quick delivery times are the factors responsible for driving the market.
Which are the top companies operating in the market?
E.Leclerc, Sainsbury's, Rakuten, Alibaba Group, Amazon, Tesco, Peapod, Costco, Albert Heijn, JD.com, Inc, Ocado, Kroger, Walmart, Target, and Carrefour are the top companies operating in the market.