Australia online grocery market size reached USD 14,202.0 Million in 2024. The market is projected to reach USD 80,239.7 Million by 2033, exhibiting a growth rate (CAGR) of 21.22% during 2025-2033. The increasing advancements in technology, such as mobile apps and user-friendly websites, which have made online grocery shopping more accessible and user-friendly, are primarily driving the market growth across the country.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 14,202.0 Million |
Market Forecast in 2033
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USD 80,239.7 Million |
Market Growth Rate 2025-2033 | 21.22% |
Growing Focus on Delivery Speed
Fast delivery has become a major battleground in Australia's online grocery market. Consumers now expect their groceries to arrive the same day, often within a few hours. To meet this demand, large retailers are overhauling their supply chains. Many are setting up micro-fulfillment centers in urban areas to cut down delivery times. These facilities allow orders to be picked and packed quickly, close to where customers live. Retailers are also teaming up with last-mile delivery startups that specialize in rapid dispatch. Some are experimenting with predictive inventory placement moving high-demand products closer to likely buyers. With speed now a deciding factor for many shoppers, delivery time is no longer just a service metric; it has become a core part of the value proposition. As a result, the competition in the market is intensifying, significantly influencing Australia online grocery market share.
Private Labels Gaining Ground
Private-label products are becoming a bigger part of online grocery catalogs in Australia. Supermarkets are investing in their brands to boost profitability and reduce reliance on third-party suppliers. These private labels are no longer limited to budget options they now encompass premium and organic ranges tailored to specific customer segments. Online platforms prominently feature them through curated lists and promotions, providing more visibility than traditional store layouts can offer. Retailers utilize customer data to position private-label items as alternatives to well-known brands, leveraging past purchasing behavior. The increased control over branding, pricing, and supply chain makes private labels strategically important. Their growing online presence signals a long-term shift in how supermarkets build loyalty and protect their margins.
Rise of Subscription and Auto-Replenishment Models
Recurring delivery models are gaining traction in the online grocery sector, particularly for staples such as milk, bread, coffee, baby supplies, and cleaning products. These subscriptions simplify customers' lives and create predictable demand for retailers. Many platforms now offer auto-replenishment features that learn from past purchase cycles to suggest when to restock. Subscribers often receive small discounts or perks, such as priority delivery slots, making the model attractive. This approach also reduces customer churn, as users become accustomed to a convenient, low-effort routine. For retailers, it's a way to lock in long-term revenue while better forecasting inventory needs. As consumers get more comfortable outsourcing routine shopping tasks, subscription models are becoming a key part of the online grocery market.
Time-Saving Convenience
One of the strongest drivers of online grocery adoption in Australia is the need to save time. Many consumers, especially working professionals and parents, prefer the ease of ordering groceries from their phones or laptops rather than spending hours in-store. The ability to shop anytime early morning, late at night, or during a lunch break adds flexibility drives the Australia online grocery market demand. Repeat orders, saved shopping lists, and personalized suggestions further reduce the effort required. With tight schedules and long commutes becoming more common, convenience is no longer just a bonus it’s essential. Online grocery platforms that offer smooth navigation, fast checkout, and reliable delivery windows are winning customer loyalty simply by giving people back their time each week.
Urbanization and Population Density
Australia’s urban centers, such as Sydney, Melbourne, and Brisbane, provide the ideal conditions for efficient online grocery operations. With many residents concentrated in apartment complexes and high-density neighborhoods, retailers can fulfill multiple orders within a small delivery radius. This clustering lowers logistics costs and shortens delivery times, making the model more viable. Additionally, city dwellers often face traffic congestion, parking issues, and limited store space, which makes online shopping the more attractive option. Urban areas also tend to have higher adoption rates of digital tools, which support broader usage of grocery apps. As urbanization continues, especially in outer metro suburbs, retailers are refining their delivery zones and investing in local fulfilment hubs to serve these populations efficiently.
Expansion of Delivery Infrastructure
Retailers in Australia are investing heavily in the systems that make online grocery work. This includes regional warehouses, micro-fulfillment centers, refrigerated storage, and advanced routing software for delivery fleets. Cold chain logistics critical for items such as meat, dairy, and produce have seen significant improvements, making customers more confident in ordering perishables online. Many companies are also partnering with third-party delivery firms or using crowdsourced delivery models to boost reach and flexibility. These logistics upgrades enable faster delivery windows, increased accuracy, and reduced spoilage. As infrastructure becomes more advanced and reliable, it removes a major barrier to entry for skeptical customers, thereby strengthening the long-term growth of the online grocery segment in both metropolitan and regional areas. According to Australia online grocery market analysis, these investments in logistics infrastructure have not only improved service quality and reliability but also significantly expanded consumer adoption rates.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on product type, business model, platform, and purchase type.
Product Type Insights:
The report has provided a detailed breakup and analysis of the market based on the product type. This includes vegetables and fruits, dairy products, staples and cooking essentials, snacks, meat and seafood, and others.
Business Model Insights:
A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes pure marketplace, hybrid marketplace, and others.
Platform Insights:
The report has provided a detailed breakup and analysis of the market based on the platform. This includes web-based and app-based.
Purchase Type Insights:
A detailed breakup and analysis of the market based on the purchase type have also been provided in the report. This includes one-time and subscription.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.
The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Product Types Covered | Vegetables and Fruits, Dairy Products, Staples and Cooking Essentials, Snacks, Meat and Seafood, Others |
Business Models Covered | Pure Marketplace, Hybrid Marketplace, Others |
Platforms Covered | Web-Based, App-Based |
Purchase Types Covered | One-Time, Subscription |
Regions Covered | Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, Western Australia |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
The online grocery market in the Australia was valued at USD 14,202.0 Million in 2024.
The Australia online grocery market is expected to reach a value of USD 80,239.7 Million by 2033.
The Australia online grocery market is projected to exhibit a compound annual growth rate (CAGR) of 21.22% during 2025-2033.
Faster delivery options, personalized shopping experiences, and mobile-first platforms are shaping the market. Subscription models, expanded product ranges, and sustainability efforts are also gaining traction. Major retailers are leveraging AI and automation to improve order accuracy, speed, and customer satisfaction.
Rising urbanization, busy lifestyles, and high internet penetration are driving demand. Improved delivery infrastructure, growing smartphone usage, and retailer-led promotions make online shopping more appealing. Consumer comfort with digital tools and the desire for convenience continue to push the market forward.