Online Grocery Market

Market Overview:

The global online grocery market size reached US$ 420 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 2,160.3 Billion by 2028, exhibiting a growth rate (CAGR) of 30.8% during 2023-2028. The rising demand for convenient and cost-effective shopping, increasing demand for doorstep delivery options, and the thriving e-commerce industry represent some of the key factors driving the market.

Online grocery refers to buying fruits, vegetables, meat, seafood, eggs, yogurt, milk, biscuits, snacks, canned items, and staples and cooking essentials through web-based platforms. It has a wide variety of goods in one place and provides several discounts, schemes, coupons, referral codes, and cashback on the purchase of a product as compared to the offline mode of grocery shopping. It attracts users by providing notifications about the delivery of products, latest offers, and new items launched. Online grocery also allows consumers to preview purchase history easily and keep track of bills. It is convenient, flexible, time and money saving and offers doorstep delivery of products while eliminating waiting in a long queue. It provides easy payment methods, such as cash on delivery (COD), net banking, unified payments interface (UPI), and debit and credit card options with easy return and exchange of products. It assists in knowing about products that are in stock and choosing substitutes when needed. Besides this, it offers freedom to consumers for comparing prices and manufacturing and expiry dates of products from different websites and purchase accordingly.

Online Grocery Market Trends:

At present, the rising adoption of online grocery among individuals due to busy lifestyles and hectic working hours around the world represents one of the key factors supporting the growth of the market. Besides this, the growing consumer preference for hassle-free and smooth shopping experiences is offering a positive market outlook. Additionally, there is a rise in the demand for convenient, time saving, and cost-effective grocery solutions among the masses worldwide. This, coupled with the thriving e-commerce industry, is propelling the growth of the market. Apart from this, the growing integration of voice ordering features with artificial intelligence (AI), big data, and the internet of things (IoT) technologies in online grocery apps or websites that can help brands predict customer behavior is positively influencing the market. In addition, the increasing number of online grocery suppliers that are providing slotted or express delivery options to customers is contributing to the growth of the market. Furthermore, key players are shifting towards online selling as it does not require huge capital investment to start a business as compared to maintaining a physical store, which is strengthening the market growth.   

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global online grocery market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on product type, business model, platform and purchase type.

Product Type Insights:

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

The report has provided a detailed breakup and analysis of the online grocery 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.

Business Model Insights:

• Pure Marketplace
• Hybrid Marketplace
• Others
   

A detailed breakup and analysis of the online grocery market based on the business model has also been provided in the report. This includes pure marketplace, hybrid marketplace, and others. According to the report, pure marketplace accounted for the largest market share.

Platform Insights:

• Web-Based
• App-Based
   

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

Purchase Type Insights:

• One-Time
• Subscription
   

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

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • Others
     

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (the United Kingdom, Germany, France, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa (Turkey, Saudi Arabia, and others). According to the report, North America was the largest market for online grocery. Some of the factors driving the North America online grocery market included the increasing demand for products at one-stop shopping, focus on affordability, rapid digitalization and emergence of e-commerce platforms, etc.  

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global online grocery market. Competitive analysis such as market structure, market share by key players, 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. Some of the companies covered include Amazon.com Services LLC, Costco Wholesale Corporation, EDEKA ZENTRALE Stiftung & Co. KG, Fresh Direct, LLC, HappyFresh Group, Koninklijke Ahold Delhaize N.V., Reliance Industries Limited (RIL), Albertsons Companies, Inc., Cygnus Home Service, LLC, Shopfoodex Co Inc., Tesco PLC, The Kroger Co., Walmart Inc., and Wm Morrison Supermarkets Limited, etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

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 online grocery market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global online grocery market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• 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 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.