The global online grocery market size was valued at USD 357.98 Billion in 2022 and is likely to reach USD 2,725.33 Billion by 2031, expanding at a CAGR of 25.3% during the forecast period, 2023-2031. 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.
Online Grocery 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 Online Grocery Market 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.
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Attributes
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Details
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Report Title
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Online Grocery Market - Global Industry Analysis, Size, Share, Growth, Trends And Forecast
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Base Year
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2022
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Historic Data
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2016 - 2021
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Forecast Period
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2023 - 2031
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Segmentation
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Products (Dairy, Pulses, Flours, Grains, and Oils), End-users (Personal Shoppers and Business Shoppers)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, revenue forecasts, growth factors, and trends
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Key Players Covered in the Report
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Carrefour, Kroger, Tesco, Walmart, Amazon, and Target
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Online Grocery Market Segment Insights
Product Segment Analysis
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 25.3% during the forecast period. This is due to an increase in demand for dairy products such as yogurt, milk, and curd. People use these items on a frequent basis, and their lifespan is shorter than that of other products.
End-users Analysis
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.
Regional Analysis
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
Products
- Dairy
- Pulses
- Flours
- Grains
- Oils
End-users
- Personal Shoppers
- Business Shoppers
Regions
- North America
- Asia Pacific
- Europe
- Middle East & Africa
- Latin America
Key Players
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.
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