USD 0.35 trillion
Online Grocery Market Size, Share, Growth Analysis, By Product type(Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood), By Purchaser Type(One Time Purchase and Subscription Purchase), By Region(North America, Europe, Asia-Pacific, Latin America), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25Z2006 |
Region:
Global |
Published Date: April, 2024
Pages:
223
|Tables:
92
|Figures:
80
Online Grocery Market Insights
Global Online Grocery Market was valued at USD 0.35 trillion in 2022 and is anticipated to rise from USD 0.44 trillion in 2023 to reach a value of USD 2.66 trillion by 2031, at a CAGR of more than 25.30% during the forecast period (2024–2031).
Over the course of the projected period, the online grocery market growth is anticipated to be driven by two key factors. The shifting consumer buying habits as a result of the pandemic's onset and the unrelenting expansion of the e-commerce sector is a primary growth driver. Secondly, online grocers get access to a wide range of payment choices and guarantees for contactless delivery of the purchased groceries. This is anticipated to aid in the market's expansion during the forecast period. For this market to expand significantly in the forecast period, multiple specialty delivery alternatives such as click & collect and same-day delivery will always be available.
The demand for online food shopping is particularly being driven by the pandemic breakout. As a result, click & collect services is encouraging people to opt for online groceries, book the grocery online, and pick up the grocery they ordered at their convenience while avoiding crowds due to the ease of availability of time slots, lower service fees, and the convenience associated with picking up the grocery while on the way. In order to offer a convenient and complete consumer experience across their network of groceries, retailers are quickly developing click & collect options. Compared to traditional channels, the online channel offers consumers more options. E-commerce platforms enable customers to compare numerous products to one another and make educated purchases as a result. Grocers now have more options to promote their brands and prioritize quality. Features like saved preferences and order histories for reordering are also enhancing consumer convenience and influencing them to choose online grocery shopping, which is fueling the market’s expansion.
US Online Grocery Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024–2031
Global Market Size
Largest Segment
Subscription Purchase
Fastest Growth
One Time Purchase
Growth Rate
more than 25.30% CAGR
Global Online Grocery Market ($ Bn)
Country Share for North America Region (%)
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Online Grocery Market Segmental Analysis
The global online Grocery Market is segmented based on the product type, purchaser type, and region. Based on the product type, the Online Grocery Market is segmented into fresh produce, breakfast & dairy, snacks & beverages, meat & seafood, staples & cooking essentials. In terms of purchaser type, the Online Grocery Market is segmented into one time purchase and subscription purchase, On the basis of region, the Online Grocery Market is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.
Online Grocery Market Analysis by Product Type
The staples & cooking essentials segment dominated the market and accounted for the largest market share of over 28% in 2021. This category was able to control the market through recurrent purchases of staples such as wheat, food grains, and cooking basics such as oil, which are seen as requirements, particularly in families throughout Asia Pacific. As customers continue to be reluctant to go out and buy groceries they need every day and prefer to avoid crowds and adhere to social distance rules in the wake of the pandemic epidemic, the staples & cooking essentials category is anticipated to rise over the course of the forecast year.
The breakfast & dairy segment is the fastest growing segment growing at a CAGR of over 26% during the forecast period. The increase in demand for various milk and non-milk products coupled with the vendors’ facilitation of doorstep delivery of these items are key factors contributing to this segment’s rapid rise. Customers are more likely to order these products from online retailers than physical retailers due to their hectic lifestyles and increased disposable cash, particularly in the wake of the pandemic epidemic.
Online Grocery Market Analysis by Purchaser Type
With respect to segmentation by type, the subscription-based purchase segment dominated the market with more than 20% of total market share in 2021 and is likely to continue its dominance during the forecast period. Customers can continually buy food and receive things on a regular basis without interruptions. This is owing to the subscription-based purchase methods. The ability to opt in and out is simple for customers thanks to the flexibility and anytime cancelling choices. With the help of subscription based purchase, customers can receive their delivery on set time which will help to boost the overall market growth in the coming years.
One time purchasing segment is likely to register the fastestgrowth rate as customers can receive home deliveries at a time without paying additional delivery fees. Participants in the online grocery sector are increasingly embracing one time Purchase based delivery services to boost income and provide flexible billing choices.
Global Online Grocery Market By Purchaser Type
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Online Grocery Market Regional Insights
North America dominated the market and accounted for a revenue share of around 16% in 2021. This is owing to the presence of several significant players with their base units in developed nations such as the U.S., and Canada. The e-commerce sales rate is projected to steadily increase in the United States. The U.S. Department of Commerce’s Retail Indicator Division estimates that the e-commerce sales sector will reach USD 871 billion in 2021, which is estimated to be 14.3% from the previous year. Any potential increase in online sales numbers, however, may be threatened by the resurgence of in-store or offline purchasing in response to the lifting of limitations.
Asia Pacific is anticipated to emerge as the fastest growing segment during the forecast period. This regional market is expected to dominate the market and grow at a CAGR of almost 27% during the forecast period. The initiatives being followed by the governments of nations like India and China to promote e-commerce and digitalization are responsible for the expansion of the regional market. Additionally, the Indian government announced that it will permit 100% FDI in the retail of food, even through e-commerce channels, as long as the products are grown, processed, and made domestically.
Global Online Grocery Market By Region
- Largest
- Fastest
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Online Grocery Market Dynamics
Online Grocery Market Driver
Rising Disposable Income to Promote Sales
- With rising disposable income, the global market for online groceries is expanding. These days, consumers demand things that are as comfortable as possible. People are more eager to save time by shopping online and are more likely to spend money on goods and services that are simple to access. For many individuals, ordering groceries online has become a simple and practical choice. Additionally, they are more eager to pay for these items than usual.
Online Grocery Market Restraint
Increasing Storage and Delivery Cost may Hinder Market Growth.
- Storage and delivery cost of grocery items decreased demand on the market. One of the biggest barriers to online grocery buying is the high cost of delivery because of changing storage expenses. Transport and fuel expenses are additional elements that influence delivery costs. Taxes, storage unit rent, maintenance costs, electricity costs, and other expenses can all have an immediate impact on the cost of the product and the delivery fee. These factors may hinder the market growth and deter customers from purchasing groceries online.
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Online Grocery Market Competitive Landscape
The global online grocery market is highly competitive in nature. To maintain a competitive edge, major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D activities.
Online Grocery Market Top Player's Company Profiles
- Amazon (US)
- Walmart (US)
- Alibaba Group (China)
- JD.com (China)
- Ocado (UK)
- Instacart (US)
- Tesco (UK)
- Carrefour (France)
- Kroger (US)
- Mercadona (Spain)
- Ahold Delhaize (Netherlands)
- Peapod (US)
- Coop (Switzerland)
- Rewe (Germany)
- E.Leclerc (France)
- Sainsbury's (UK)
- Target (US)
- Woolworths (Australia)
- Migros (Switzerland)
- Shipt (US)
Online Grocery Market Recent Developments
- In April 2024, Welbee's launched its new online grocery shopping platform.
- In February 2024, Sainsbury's, the largest supermarket, introduced a "Best of British" page on its website, aiming to promote the purchase of British-grown and produced goods among shoppers.
- In February 2024, Bombay Gourmet Market revealed a strategic partnership with Yango Tech, a renowned global technology leader known for its innovative solutions. Their collaboration aims to transform modern retail in India and enhance the online shopping experience for their customers.
- In February 2024, Deliveroo UAE reported robust growth in its on-demand grocery segment, with a notable surge in grocery order volumes across the UAE. In 2023, the on-demand grocery platforms experienced a twofold increase, with orders rising by 62% in Dubai and 135% in Abu Dhabi, underscoring a dedication to meeting evolving customer preferences.
Online Grocery Key Market Trends
- The E-commerce industry is evolving quickly, and the emerging trend is to not only adapt it but to use it to economically satisfy the client demand. By implementing automation, merchants of the online grocery market can compete with the high consumer demand and provide a fair playing field.
Online Grocery Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Online Grocery Market analysis, among regions Asia Pacific is expected to capture higher market share during forecast period, the growth of the region is attributed to growing government initiatives to promote e-commerce and digitalization. Indian and China have emerged as a significant contributor to market growth in Asia Pacific. In terms of product type, the staples & cooking essentials segment dominates the marine hybrid propulsion market. This segment's leading position can be attributed to its growing importance and awareness to buy for the groceries they need every day. In terms of purchase type, the commercial application led the market and is predicted to grow at the fastest rate.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 0.35 trillion |
| Market size value in 2031 | USD 2.66 trillion |
| Growth Rate | more than 25.30% |
| Base year | 2023 |
| Forecast period | 2024–2031 |
| Forecast Unit (Value) | USD Trillion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Online Grocery Market Recent Developments
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Online Grocery Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Online Grocery Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Online Grocery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Online Grocery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Online Grocery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Online Grocery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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