Online Grocery Market Size, Share, Trends, Growth, and Industry Analysis By Product Type (Fresh Produce, Packaged Foods, Dairy & Eggs, Meat, Poultry & Seafood, Beverages, Frozen Foods, Health & Wellness Products), By Platform (E-commerce Websites, Mobile Applications, Online Marketplaces), By Delivery Model (Home Delivery, Click & Collect, Scheduled Delivery), By End-User (Individual Consumers, Businesses), and Regional Forecast to 2034.
The global Online Grocery market was valued at USD 216.85 billion in 2024 and is set to reach USD 968.42 billion by 2034, growing at a steady CAGR of 18.09%.
Buying and selling of grocery products and food on digital channels can be understood as the online grocery market on a global basis. It basically offers customers browsing facilities of their required grocery, the ordering service, and having their products home-delivered at an affordable time and cost. This trend was expedited during the COVID-19 pandemic, as people generally resorted to online platforms for their safety and relatively easy access to most necessities. The online grocery market is expected to continue growing as more consumers embrace the convenience of online shopping.
Growth in the market has been facilitated by the increased use of mobile apps, faster delivery options, and an increasing variety of products. The market players include large e-commerce platforms, traditional grocery stores that have shifted to online models, and specialized online grocery retailers. This market is also supplemented by advances in logistic, payment, and service for customers that significantly enhance the experience of shopping. The market for online shopping will expand further both in developed and emerging countries as consumer confidence towards internet shopping increases.
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Report Attribute |
Details |
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Market Value (2024) |
USD 216.85 Billion |
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Projected Market Value (2034) |
USD 968.42 Billion |
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Base Year |
2024 |
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Historical Year |
2020-2023 |
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Forecast Years |
2025 – 2034 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Product Type, By Platform, By Delivery Model, By End-User, & Region. |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2025 to 2034. |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Some of the main drivers are the increased demand for convenience by consumers. Online grocery shopping allows customers to order products at any time from the comfort of their homes. The rise in smartphone usage and mobile applications has made it easier for consumers to browse, compare prices, and make purchases quickly. Improvements in delivery infrastructure, including faster and more reliable delivery services, are also contributing to the expansion of the market.
On the other hand, the market also has its challenges. Logistical complexities in maintaining product quality and timely deliveries are a few of them. The competition in the market is quite intense with traditional grocery stores, dedicated e-commerce platforms, and local delivery services all competing for market share. The cost of delivery and maintaining an efficient supply chain is another challenge. On the other hand, collaborations between the online retailers and well-established chains of grocery have overcome these hindrances and will be able to make online groceries available to wider segments of population.
Consumer demands are shifting more toward fresher, organic, and local items, which only makes inventory control and variety offering even more difficult. All in all, the market is subject to some hurdles, but digital adoption is still on the growth curve, and logistics and technology are continuously being improved, hence further growth is expected in the online grocery space.
Online grocery shopping is highly convenient as it allows customers to buy groceries from the comfort of their homes at any time without having to visit physical stores. This is a major driver for the market as consumers increasingly seek convenience in their daily lives. Busy lifestyles, particularly in urban areas, have made it challenging for people to find time for traditional grocery shopping.
The time saving happens due to features like easy navigation, personalized recommendations, and fast reorder of frequent-purchase items, and so forth. Moreover, delivery and same-day services are popular add-ons for customer convenience. More particularly, young generation and professionals value time for other more effective work in business, making more efficient the customer shopping.
Logistics of delivery and its services have greatly improved the growth of the online grocery market. As e-commerce and online shopping have increased over the years, companies have greatly invested in optimization of their supply chain and the delivery system to ensure faster deliveries and real-time tracking, therefore increasing consumer confidence in online grocery shopping. In addition, contactless delivery, which gained a lot of popularity during the COVID-19 pandemic, makes shopping even more attractive.
Further reducing delivery times and enhancing customer experience, the last-mile delivery services are also expanding through partnerships with local delivery providers or autonomous vehicles. These improvements in logistics are not only increasing customer satisfaction but also expanding the market's reach to rural areas where traditional delivery might have been challenging.
One of the significant restraints in the online grocery market is the complexity of managing logistics and supply chains. Online grocery shopping requires precise handling, packaging, and fast delivery so that products reach consumers in fresh condition. For perishable goods like fruits, vegetables, and dairy products, this is even more important as they cannot be kept for a long time.
The challenges are always maintaining product quality during transportation and managing the inventory efficiently. Besides, in regions with less infrastructure, it becomes difficult to fulfill the consumer's demand for same-day or next-day delivery, which further puts a strain on resources. Hence, the main challenge for businesses in this market is managing costs while ensuring quality.
Online grocery delivery is expensive and maintaining an efficient delivery model becomes a significant restraint on profitability. Most consumers want free or low-cost delivery, which is tough for retailers to sustain without having to compromise profit margins. Along with transportation, the costs related to packaging, handling, and inventory management have further implications for the bottom line. Small and medium-sized online grocery players face significant challenges in scaling their operations for cost-effective deliveries. Companies such as Amazon and Walmart can afford to absorb such costs, but for smaller competitors, finding a profitable delivery model remains a significant challenge.
The increasing demand from consumers for healthier, organic, and sustainably sourced products is an emerging opportunity in the online grocery market. With the increase in health-conscious lifestyles, people are looking for fresh produce, organic food, and plant-based alternatives that they might not find readily available in local grocery stores. Online grocery platforms can take advantage of this trend by increasing their specialty items such as organic, gluten-free, and vegan products.
This healthy eating trend allows companies to exploit niche markets and increase customer loyalty by offering a wide variety of quality, health-focused products. Besides, collaborating with local farms and organic producers may help in developing trust with the consumers who look for sustainability and transparency in sourcing food products.
The product type segment of the global online grocery market offers a wide variety of categories that cater to various consumer needs. Fresh produce forms an important category, with fruits, vegetables, and other perishable products, which require special care to remain fresh while in transit. Packaged foods are another important category, such as snacks, grains, canned foods, and ready-to-eat meals, catering to the need for convenience and longer shelf life. Dairy & eggs is another important product category, covering milk, cheese, yogurt, and eggs.
Meat, poultry, and seafood allow consumers to buy fresh or frozen proteins, and beverages include both non-alcoholic, such as juices, water, and soft drinks, and in some markets alcoholic beverages. It spans from frozen vegetables to frozen meals and even desserts. They enjoy a very healthy shelf life as well, but the biggest thing is their convenience. Health & wellness products constitute organic, gluten-free, vegan, and so on products; that are supposed to help with healthier lifestyles. Together, these product types constitute the core offerings in the online grocery market, catering to each of the different consumer preferences for freshness, convenience, or health-conscious choices.
By platform segment, it deals with the different channels through which consumers access online grocery services. E-commerce websites are the traditional platform, allowing users to browse, compare, and purchase groceries through desktop or mobile web interfaces. Mobile applications have gained much popularity, allowing users to experience a more personalized and convenient service through their smartphones.
These apps enable customers to make orders, monitor delivery, and receive promotions at one glance. Online marketplace sites like Amazon or regional market places accumulate products from various sellers to present a wider variety of grocery items in one site. Such platforms are chasing the rising preference for convenience and variety, where consumer can shop multiple categories without visiting multiple sites or apps. As mobile penetration and internet access grow around the world, these platforms are growth drivers in the market.
By delivery model segment, the different ways through which groceries are delivered to customers are defined. Home delivery is the most common and popular method, where orders are placed online and delivered directly to customers' doorsteps, often with options for same-day or next-day delivery. Click & collect is a popular model where the customer shops online and then picks up their orders at a convenient location, often a local store or a fulfilment center.
It is convenient for those who wish to avoid delivery fees or wish to pick up their groceries at a convenient time. Scheduled delivery allows consumers to set a specific time for their delivery, giving room for flexibility for busy households or individuals who prefer receiving their orders at a particular time of day. This model is useful for time-sensitive deliveries as it ensures that consumers get their groceries at a time convenient for them, which is essential in regions where consumers demand faster services or have specific time availability.
The online grocery market is divided among customers based on their buying patterns and needs, which are grouped into end-user segments. The largest portion of the market belongs to individual consumers, who purchase groceries for personal or household consumption. These may be single people, small or large families, and their choices are influenced by factors such as convenience, price, and product quality. The increasing demand comes from the home, individual customers, where increasingly busy lifestyles increase the appeal for the convenience of shopping at home.
For the business community comprising restaurants, hotels, and offices, demand will also continue to grow, including bulk purchases for restaurants and possibly regular purchase quantities for the remaining businesses; businesses will have some preferences over convenience, efficiency in purchasing and getting their requirements on time, lower price, and appropriate products.
The businesses, to save the hassle and extra time spent purchasing the bulk and having the needed supply on time, are also now using the online grocery shops. As a result, as long as there is growth due to individual customers and businesses alike, the web grocery services change and evolve with both the sets of customers separately.
The North American market is highly developed, as its areas are dominated by the structures of superior infrastructure, high internet penetration, and a growing preference for convenience among consumers. The United States particularly recorded a great explosion in online grocery sales. Large players like Amazon, Walmart, and Target expanded their e-commerce grocery services. The uptake of online grocery shopping in Canada is also increasing, albeit slower than in the U.S., as the consumer embraces the shift to digital platforms for grocery purchases.
The online grocery market is growing steadily in Europe, and the UK, Germany, and France are some of the top countries leading this growth. In the region, the UK is one of the most mature markets, with established online grocery retailers such as Tesco, Sainsbury's, and Asda offering strong delivery services. Online grocery sales continue growing both in Germany and France as demand by the customers increase their expectations about more comfort options. Strong penetration of the Internet into this region with its rapidly rising environmental sensitivity fuels this kind of trend of increasing in this field of sales.
The Asia-Pacific market is growing rapidly, especially in China, India, and Japan. China has emerged as one of the largest markets for online groceries, with the growth of e-commerce giants such as Alibaba and JD.com. India, with its growing middle class and smartphone penetration, is expected to be a key player in the coming years. Southeast Asia is also on the rise. Internet access has been increasing with mobile shopping gaining popularity, propelling the growth of online grocery. Latin America and the Middle East are other regions where the market is picking up, but the markets here are still developing, and in these regions, the growing number of urbanized people and improved internet access increase the market size.
Large multinational players in e-commerce include Amazon, Walmart, and Alibaba, while leveraging their substantial logistics networks and brand recognition advantage to capture larger shares of market space. Fresh and Grocery products by Walmart would be the closest contenders in the North American domain, offering considerable grocery products quickly, often for same-day and next-day deliveries. These companies continue to invest heavily in improvement of delivery infrastructure, expansion of their product offerings, and their progressive enhancement of user experience to retain customers and attract new ones.
Apart from these global giants, traditional grocery retailers have also enhanced their online offerings to match digital-only platforms. In the UK, Tesco, Sainsbury's, and Asda are some strong players offering extensive online grocery services in addition to their brick-and-mortar stores. The companies use their physical stores as fulfillment centers to expedite delivery and collection services. In Europe, Carrefour and Lidl are big players that are taking an omnichannel approach to match growing consumer demand for grocery shopping online.
The Asian Pacific region has the leaders, Tmall by Alibaba and JD.com, that benefit from a very advanced logistics network and insights from local consumers in China. Regional players such as BigBasket and Grofers in India compete with global players offering tailored services and expanding delivery networks. Players from Southeast Asia, such as Lazada and Shopee, are also picking up as they integrate online grocery offerings into general e-commerce platforms.
The small regional players and startups are constantly emerging, and they capitalize on local consumer preferences, niche offerings, and personalized services to occupy a niche in the market. These players mainly focus on local sourcing, faster delivery times, and specific product categories like organic or artisanal foods to stand out from their larger competitors. The competitive landscape remains fluid as companies innovate and adapt to changing consumer demands and technological advancements.
By Product Type
By Platform
By Delivery Model
By End-User
By Region
The study focuses on analyzing the global Online Grocery market through the following key objectives:
Online Grocery Market Segmentation
By Product Type
By Platform
By Delivery Model
By End-User
By Region
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