Online Grocery Market by Product (Fresh Produce, Packed Foods), Delivery Type (Instant Delivery, Schedule Delivery) - Global Forecast 2024-2030

Online Grocery Market by Product (Fresh Produce, Packed Foods), Delivery Type (Instant Delivery, Schedule Delivery) - Global Forecast 2024-2030

The Online Grocery Market size was estimated at USD 200.00 billion in 2023 and expected to reach USD 229.28 billion in 2024, at a CAGR 14.90% to reach USD 529.10 billion by 2030.

Online grocery comprises sales of groceries through online platforms, mobile apps, and websites, enabling consumers to purchase food and household items over the internet. This market includes a variety of products, including fresh produce, packaged foods, beverages, personal care products, and household cleaning supplies. The scope extends from end-to-end processes involved in selecting, purchasing, and delivering these products directly to the consumer's doorstep. The primary applications include residential households, small businesses, and, in certain cases, bulk purchasers, inclduing hostels or small restaurants looking for direct deliveries of grocery supplies. The growing shift towards online shopping, fueled by the convenience and time-saving aspects of online grocery shopping, significantly contributes to market expansion. Increased service area coverage by online grocery providers and the introduction of value-added services such as same-day delivery encourage more consumers to shop online. Logistic challenges, including maintaining product quality during transit, especially for perishable goods, hampers the market growth. The adoption of AI and machine learning for personalized shopping experiences, integration of voice-assisted shopping, and expansion into underserved regions present significant opportunities for market growth. Further, leveraging blockchain technology to enhance supply chain transparency and food safety could tap into the consumer's growing concern over product sourcing and authenticity.

Regional Insights

In the Americas, the convenience of online shopping, coupled with fast delivery services, has significantly boosted the online grocery market. Emerging technologies and business models, such as subscription services and personalized shopping, are continually shaping consumer preferences. Notable investments include expansions of warehouse and delivery infrastructure by leading players. The Asia Pacific region is expanding with rising online grocery sales, with innovative technologies such as mobile payments and social commerce playing a significant role. The market sees a high emphasis on speed and convenience, with same-day delivery services becoming increasingly common. The online grocery market in the EU is diverse, with consumer preferences varying significantly across countries. However, a common trend is the demand for organic and locally sourced products. EU regulations supporting fair trade and organic certification have further driven this demand. Innovations aimed at reducing food waste and improving delivery efficiency are prevalent. The Middle East sees a growing interest in online grocery shopping amid rising internet penetration and smartphone usage. The market is characterized by a preference for halal-certified products and a strong demand for high-quality, international foods. Recent initiatives focus on enhancing cold chain logistics to maintain the quality of perishables. Africa's online grocery market shows considerable potential, driven by an expanding middle class and increasing internet accessibility.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Online Grocery Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Increased working population with hectic schedules
Inclination of consumer preferences towards contactless shopping
Rise of shopping subscriptions and increased focus on expanding e-commerce business

Market Restraints

Logistics issues with online grocery

Market Opportunities

Introduction of innovative business models, including express delivery and on-demand delivery models
Incorporation of smart management strategies and working system

Market Challenges

Privacy and security concerns with the usage of online grocery platforms

Market Segmentation Analysis

Product: Increasing packed foods, encompassing ready-to-eat meals that addresses the needs of convenience and longevity
Delivery Type: Growing usage of instant delivery services that offer the convenience of delivering groceries

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Online Grocery Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Online Grocery Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Flipkart Launches First Grocery Fulfilment Centre In Bhubaneswar To Expand Service

Flipkart has inaugurated its inaugural grocery fulfillment center in Bhubaneswar. This state-of-the-art facility is a testament to Flipkart's commitment to providing seamless and efficient grocery shopping experiences to its customers. Spanning over 45,000 square feet, the center is poised to significantly bolster Flipkart's distribution capabilities, ensuring that a wide assortment of quality groceries reaches shoppers promptly.

Amazon UK Takes Instacart Approach With Third-Party Grocery Partnerships

Amazon UK has embarked on a new venture by formulating partnerships with third-party grocery retailers, emulating the Instacart model. This initiative signifies a pivotal shift in Amazon's approach to capturing a larger share of the online grocery market, underscoring the company's adaptability and its commitment to innovating within the e-commerce landscape.

Roku and Instacart Announce Partnership to Pair TV Streaming and Online Grocery Delivery for Marketers

Roku has teamed up with Instacart, the prominent online grocery delivery platform, to forge a unique partnership aimed at revolutionizing marketing in the digital age. This alliance is set to merge the immersive world of TV streaming with the convenience of online grocery shopping, creating a seamless experience for consumers. With Roku's expansive reach of millions of viewers and Instacart's robust grocery delivery network, this collaboration offers marketers an unparalleled opportunity to link with their audience in a meaningful and impactful way.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Online Grocery Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Online Grocery Market, highlighting leading vendors and their innovative profiles. These include Aldi Stores Limited, Alibaba Group, Amazon.com, Inc., Avenue Supermarkets limited by Zomato, Carrefour, Costco Wholesale Corporation, Dunzo Digital Private Limited, Edeka Group, Fresh Direct, LLC, Instacart, Misfits Market, Inc., Natures Basket Limited by Spencer's Retail, Ocado Group PLC, Paytm, Reliance Retail Ltd., Supermarket Grocery Supplies Pvt. Ltd., Target Corporation, Tesco PLC, The Kroger Company, UrDoorstep eRetail Pvt. Ltd., and Walmart Inc..

Market Segmentation & Coverage

This research report categorizes the Online Grocery Market to forecast the revenues and analyze trends in each of the following sub-markets:

Product
Fresh Produce
Packed Foods
Delivery Type
Instant Delivery
Schedule Delivery
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year