Global Online Grocery Market by Products (Dairy, Pulses, Flours, Grains, and Oils), End-users (Personal Shoppers and Business Shoppers), and Regions (North America, Asia Pacific, Europe, Middle East & Africa, and Latin America), and Forecasts, 2021-2028

The global online grocery market is anticipated to expand at a substantial CAGR during the forecast period, between 2021-2028. An online grocery store is either a physical supermarket or grocery store that takes online orders or a distinct e-commerce business that offers food goods. Normally, a delivery cost is associated with this service. For online order service, e-commerce websites or mobile applications are employed. Some of the advantages of ordering food shopping online includes door-step delivery and convenience to order grocery anytime. Online shopping eliminates running errands, saving time. People are increasingly turning to customizable and accessible online platforms for food shopping instead of trekking down to the neighborhood vendors as their disposable incomes rise and their lifestyles become busier. The year 2020 boosted digitization and changed consumer’s buying pattern, one of them is buying groceries online. Following the COVID-19 lockdown, online grocery shopping became the favored means of food purchasing online not just in tier-I cities, but also in towns and villages.

Market trends, Drivers, Restraints and Opportunities:

• Rising Internet penetration is one of the drivers of market growth
• Increasing number of discounts offers provided by online grocery stores due to the competitive landscape in the market is boosting the growth of the market.
• Increased internet usage and the rise of digital payment have also contributed to the market's growth.
• The convenience to buy groceries offline to determine the freshness is one of the major factors restraining the market growth.
• Reduced delivery time is one of the key factors propelling the market growth during the forecast period.
• Increasing awareness about online grocery and its benefits is expected to create lucrative opportunities during the forecast period.

Scope of the Report:

The report on the online grocery market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Online Grocery Market Segment Insights

Pulses segment to hold a substantial market share

Based on products, the market can be divided into dairy, pulses, flours, grains, and oils. The pulses segment is anticipated to acquire a larger market share during the forecast period. The major share of the segment is due to the rising adoption of pulses in emerging countries. The dairy segment is estimated to expand at a CAGR of 37% during the forecast period. This is due to an increase in demand for dairy products such as yoghurt, milk, and curd. People use these items on a frequent basis, and their lifespan is shorter than that of other products.

Personal shoppers segment expected to register for a rapid growth

On the basis of end-users, the market can be divided into personal shoppers and business shoppers. The personal shoppers’ segment is anticipated to account for a significant market share during the forecast period. Increasing number of households preferring online grocery shopping due to hectic lifestyle is driving the growth of the market segment. On the other hand, the business shoppers’ segment is expected to grow at a healthy rate in the projected timeline.

Asia Pacific to account a large market share

In terms of regions, the market can be segmented into Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. The market in Asia Pacific is anticipated to exhibit a high CAGR during the forecast period. The existence of numerous significant businesses in the region, such as Supermarket Grocery Supplies Pvt. Ltd. (Big Basket), Gofers India Pvt. Ltd., and Amazon India Pvt. Ltd., as well as high number of Internet users are major factors spurring the regional market growth. Rising customers' comfort with online transactions, as well as the changing consumer environment, have been important drivers of the expansion of online groceries in the region.

Segments

Segments Covered in the Report
By Products

• Dairy
• Pulses
• Flours
• Grains
• Oils

By End-users

• Personal Shoppers
• Business Shoppers

By Regions

• North America
• Asia Pacific
• Europe
• Middle East & Africa
• Latin America

By Key Players

• Carrefour
• Kroger
• Tesco
• Walmart
• Amazon
• Target

Competitive Landscape

Major market players are Carrefour, Kroger, Tesco, Walmart, Amazon, and Target. The market is fragmented and highly competitive. Partnerships, mergers and acquisitions, and geographical development are among the techniques used by key corporations to strengthen their market position. These tactics assist market participants in regionally expanding their operations and improving their products across national and international marketplaces.

In November 2020, Amazon India Pvt. Ltd., announced its plans to open its online grocery store Amazon Fresh in four more cities, namely Pune, Ahmedabad, Kolkata, and Chennai. According to the company, the service was introduced in these places by expanding its specialized geographical network, which enables ultra-fast delivery of groceries and daily goods through the Amazon Fresh Store on Amazon.in.