Europe Online Grocery Market Outlook, Growth, Latest Trends, and Forecast

Market Overview:

The Europe online grocery market size reached US$ 126.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 422.1 Billion by 2032, exhibiting a growth rate (CAGR) of 13.9% during 2024-2032. The rising prevalence of busy lifestyles of the masses, faster delivery of products with doorstep facilities over traditional shopping and changing shopping preferences of individuals on account of the sudden outbreak of the coronavirus disease (COVID-19), are among the key factors driving the market growth.

Online grocery is a form of e-commerce that involves the sale and delivery of groceries and related products through digital platforms. It allows customers to browse through a wide selection of food items, beverages, household supplies, and other grocery products from the comfort of their homes or any location with internet access. Customers can utilize specialized websites or mobile applications provided by grocery retailers or dedicated online grocery platforms to place their orders. Once the customers have selected the desired items, they can proceed to the virtual checkout where they provide payment details and select a delivery slot. The orders are then processed, packed, and delivered to the customer's specified address. Online grocery shopping offers several advantages. It provides convenience and time-saving benefits as customers can avoid the need to physically visit a grocery store. It also allows 24/7 access, enabling customers to shop at their preferred time.

The increasing consumer demand for convenience and time-saving solutions has accelerated online grocery adoption in Europe. Moreover, numerous advancements in technology and infrastructure such as improved internet connectivity, user-friendly mobile applications, and efficient logistics networks, making it easier for consumers to shop for groceries online is positively influencing the market growth. Apart from this, rapid digitalization in the grocery sector, with consumers turning to online channels for their grocery needs due to safety concerns and lockdown measures has accelerated the product adoption rate. Furthermore, the surging presence of established grocery retailers venturing into the online space, along with the rise of dedicated online grocery platforms has catalyzed the market growth. For instance, dedicated online grocery platforms like Instacart and Amazon Fresh have also gained traction by offering comprehensive product selections, convenient delivery options, and personalized shopping experiences.

Europe Online Grocery Market Trends/Drivers:

Increase in Consumer Demand for Convenience

Online grocery shopping offers a convenient alternative to traditional brick-and-mortar stores, allowing consumers to browse and purchase groceries from the comfort of their homes or while on the go. This convenience factor is particularly appealing to busy professionals, working parents, and individuals with limited mobility. Online grocery platforms provide a wide range of products, including fresh produce, pantry staples, and household items, allowing consumers to fulfill all their grocery needs in one place. Moreover, these platforms often offer features such as personalized recommendations, saved shopping lists, and the ability to easily reorder previously purchased items, enhancing the overall convenience and shopping experience. The demand for convenience is driving the growth of online grocery platforms across Europe. Consumers are recognizing the time and effort saved by avoiding the physical trip to the store, navigating through crowded aisles, and waiting in long checkout queues.

Advancements in Digital Technology and Infrastructure

Advancements in digital technology and infrastructure have played a pivotal role in the expansion of the online grocery market in Europe. With the widespread availability of high-speed internet connectivity and the ubiquitous presence of smartphones, consumers have the necessary tools to access online grocery platforms with ease. User-friendly mobile applications and responsive websites have made it convenient for consumers to browse, select, and purchase groceries using their preferred digital devices. Furthermore, improvements in logistics and delivery networks have enhanced the efficiency and reliability of online grocery shopping. Dedicated delivery services and partnerships with third-party logistics providers enable timely and convenient delivery of groceries to customers' doorsteps.

Europe Online Grocery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Europe online grocery market report, along with forecasts at the regional and country levels from 2024-2032. Our report has categorized the market based on product type, business model, platform and purchase type.

Breakup by Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others
   

Staples and cooking essentials represent the most popular product type

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. According to the report, staples and cooking essentials represented the largest segment.

Staples and cooking essentials are the dominating product type in the online grocery market in Europe due to several driving factors. They are everyday necessities that consumers consistently require for meal preparation and household needs. The regular demand for staples such as rice, flour, cooking oil, and spices ensures a steady market for these products. Moreover, online grocery shopping offers convenience and time-saving benefits to consumers, allowing them to easily browse, select, and purchase these items from the comfort of their homes. This convenience factor is contributing to the segment growth. Furthermore, the easy availability of variety of choices available online, including different brands, sizes, and types of staples and cooking essentials, enabling consumers to find products that match their preferences and dietary requirements has catalyzed the segment growth. The extensive product range and detailed information provided online make it easier for consumers to make informed purchase decisions.

Breakup by Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others
   

A detailed breakup and analysis of the market based on the business model has also been provided in the report. This includes pure marketplace, hybrid marketplace, and others. 

A pure marketplace, also known as a two-sided marketplace, is an online platform that connects buyers and sellers without engaging in any direct sales or inventory ownership. In a pure marketplace, the platform serves as a facilitator, allowing sellers to list their products or services, and buyers to browse and purchase from multiple sellers. The platform typically earns revenue through transaction fees, commissions, or subscription models.

A hybrid marketplace combines elements of a pure marketplace with direct sales or inventory ownership by the platform itself. In addition to facilitating transactions between third-party sellers and buyers, the hybrid marketplace also offers its own products or services. This hybrid model allows the platform to provide a broader range of options and maintain control over certain aspects of the customer experience. The platform may curate its own inventory, set pricing, handle logistics, or offer additional services to complement the third-party seller ecosystem.

Breakup by Platform:

• Web-Based
• App-Based
   

A detailed breakup and analysis of the market has been provided based on platform. This includes web-based and app-based.

A web-based platform refers to a software application or service that is accessed and utilized through a web browser. It operates entirely within the web browser, without the need for users to download or install any additional software. Users can access a web-based platform by simply navigating to a specific website or URL using a web browser such as Google Chrome, Mozilla Firefox, or Safari. These platforms are designed to be responsive and accessible across different devices, including desktop computers, laptops, tablets, and smartphones.

An app-based platform refers to a software application that is specifically designed and developed to be installed and run on mobile devices, such as smartphones or tablets. These platforms require users to download and install the dedicated application from an app store or marketplace, including the Apple App Store or Google Play Store, onto their mobile device. The application provides a tailored user interface and features optimized for the mobile platform.

Breakup by Purchase Type:

• One-Time
• Subscription
   

A detailed breakup and analysis of the market has been provided based on purchase type. This includes one-time and subscription.

A one-time purchase refers to a transaction where a customer buys a product or service for a single instance without any recurring obligations or commitment. It is a single transaction that occurs at a specific point in time, typically involving a one-time payment. Once the purchase is made, the customer owns the product or gains access to the service for a defined period, but there is no ongoing relationship or obligation between the customer and the seller beyond that specific purchase.

A subscription purchase involves an ongoing commitment where a customer pays for repeated access or delivery of a product or service over a specified period. Instead of a one-time payment, customers agree to regular payments at recurring intervals, such as monthly, quarterly, or annually, to maintain access to the subscribed product or service. Subscriptions often offer benefits like continuous updates, additional features, or exclusive content during the subscription period.

Breakup by Country:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
   

United Kingdom exhibits a clear dominance in the market

A detailed breakup and analysis of the market has been provided based on country. This includes Germany, France, the United Kingdom, Italy, Spain, and others. According to the report, United Kingdom was the largest market for online grocery.

United Kingdom has made significant contributions to the Europe online grocery market with its robust e-commerce infrastructure and tech-savvy population. The country's strong logistics networks and widespread adoption of online shopping have fueled the growth of online grocery platforms, making it one of the largest markets in Europe.

In France, surge in online grocery shopping, driven by the presence of established retailers and dedicated online platforms is contributing to the market growth. The UK market has witnessed the introduction of various delivery models, subscription services, and advanced technologies, shaping the evolution of the online grocery sector.

The online grocery market in Italy has attracted both traditional retailers expanding their online presence and dedicated platforms catering to changing consumer demands. In Spain, Spanish consumers are embracing the convenience and time-saving benefits of online grocery shopping.

Competitive Landscape:

The key players in the market have made several innovations and advancements to meet the evolving demands of consumers and businesses. The expansion of click-and-collect services in which many online grocery platforms offer the option for customers to place their orders online and pick them up at designated collection points or even directly from physical stores. Moreover, key players are integrating smart home devices and voice assistants. Online grocery platforms have embraced technologies such as Amazon's Alexa or Google Assistant, allowing customers to add items to their shopping carts or place orders using voice commands. Furthermore, the introduction of subscription-based models and loyalty programs has gained traction in the Europe online grocery market.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.

Europe Online Grocery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe online grocery market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Europe online grocery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe online grocery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.