Online Grocery Market Forecasts to 2030 - Global Analysis By Product Type (Fresh Produce, Bakery, Deli & Prepared Meals, Meat, Seafood & Poultry and Other Product Types), Delivery Type (Home Delivery, Click and Collect and Other Delivery Models), Purchase

Online Grocery Market Forecasts to 2030 - Global Analysis By Product Type (Fresh Produce, Bakery, Deli & Prepared Meals, Meat, Seafood & Poultry and Other Product Types), Delivery Type (Home Delivery, Click and Collect and Other Delivery Models), Purchase Type, Platform, Business Model, Payment Method and By Geography

According to Stratistics MRC, the Global Online Grocery Market is accounted for $525.7 billion in 2024 and is expected to reach $1785.3 billion by 2030 growing at a CAGR of 22.6% during the forecast period. Online grocery shopping refers to the purchase of food and household items via internet-based platforms. Customers select products from virtual stores, place orders, receive deliveries at their doorstep, or choose curbside pickup. This service offers convenience, a wide range of products, and often competitive pricing, catering to the needs of busy consumers and those seeking contactless shopping options.

According to the Indian Brand Equity Foundation (IBEF), the Indian e-commerce industry, which includes online groceries, is projected to reach US$300 billion by 2030.

Market Dynamics:

Driver:

Increased adoption of e-commerce and mobile-based services

The online grocery market is significantly propelled by the increased adoption of e-commerce and mobile-based services. The convenience of shopping from anywhere at any time, coupled with the wide range of products available online, has encouraged consumers to shift towards online grocery shopping. This trend is further supported by the growing penetration of smartphones and internet services, making it easier for consumers to access online grocery platforms.

Restraint:

Strong competition from offline retail stores

A major restraint for the online grocery market is the intense competition from offline retail stores. Traditional brick-and-mortar stores, especially local and unorganized retailers, offer immediacy, the ability to inspect products firsthand, and often, personalized service. These factors can make offline shopping more appealing to certain consumer segments, posing a challenge to the growth of online grocery platforms.

Opportunity:

Adoption of subscription and membership models

The adoption of subscription and membership models presents a significant opportunity for the online grocery market. These models offer convenience and cost savings to consumers through regular, scheduled deliveries and often include additional benefits such as exclusive discounts or free delivery. This approach can enhance customer loyalty and predictability in demand for online grocery providers.

Threat:

Cyber security threats

Cyber security threats pose a significant threat to the online grocery market. With the increasing amount of personal and financial data being shared online, grocery platforms are prime targets for cyber-attacks. Breaches can lead to loss of consumer trust and significant financial and reputational damage, making cybersecurity a critical concern for online grocery businesses.

Covid-19 Impact:

The Covid-19 pandemic has had a profound impact on the Online Grocery Market, serving as a catalyst for significant growth. With lockdowns and social distancing measures in place, consumers turned to online grocery shopping as a safer alternative to visiting physical stores. This shift has led to an accelerated adoption of online grocery services, a trend that is expected to continue post-pandemic.

The home delivery segment is expected to be the largest during the forecast period

The home delivery segment is expected to be the largest during the forecast period. This dominance can be attributed to the convenience and time-saving benefits it offers to consumers. Home delivery eliminates the need for consumers to travel and physically shop for groceries, making it an attractive option for busy individuals and families. As online grocery platforms continue to improve their logistics and delivery efficiency, this segment's appeal is likely to grow further.

The subscription purchase segment is expected to have the highest CAGR during the forecast period

The subscription purchase segment is expected to have the highest CAGR during the forecast period. This growth is driven by the increasing consumer preference for convenience and the desire to avoid the hassle of repeated online ordering. Subscription models, offering scheduled deliveries of groceries at set intervals, cater to this demand, ensuring a steady customer base and predictable revenue streams for online grocery providers.

Region with largest share:

The Asia Pacific region is positioned to dominate the online grocery market, holding the largest share. This dominance is due to the region's large population, increasing internet and smartphone penetration, and growing acceptance of online shopping. Countries like China and India, with their rapidly expanding middle classes and tech-savvy consumers, are major contributors to the region's leading position in the market.

Region with highest CAGR:

The Asia Pacific region also anticipates rapid growth in the online grocery market, with the highest CAGR. This growth is fueled by the same factors that contribute to its largest market share: a burgeoning middle class, high internet and smartphone penetration, and a cultural shift towards digital shopping. Additionally, improvements in logistics and payment infrastructures in the region support the expansion of online grocery services, making it a highly promising market for future growth.

Key players in the market

Some of the key players in Online Grocery Market include Amazon, Zepto, JD.com, Tesco, Ocado, Instacart, Kroger, Flipkart, BigBasket, Reliance Retail, Mercadona, Carrefour, Ahold Delhaize, Coles Group, Woolworths Group, Sainsbury's, Emart, Lazada Group and Swiggy.

Key Developments:

In April 2024, Amazon (AMZN) launched a new grocery subscription option for members of its Prime service. One Amazon stock analyst called the offering an ""important step forward"" for the tech behemoth's broader grocery strategy. For an additional $9.99 per month, Amazon Prime members can sign-up for unlimited grocery delivery on orders worth more than $35 from Whole Foods Market, Amazon Fresh and other grocery retailers on the platform. Customers with a registered EBT card used for government food assistance can get the same grocery subscription without a Prime membership for $4.99 per month, Amazon said.

In April 2024, Flipkart opens third grocery fulfilment center in Karnataka. Spread across an area of over 60,000 square feet, the new centre is equipped with a daily dispatch capacity of over 9,000 units per day. With the new unit, Flipkart aims to cater to the rising demand for online groceries across Ballari, Davanagere, Dharwad, Shivamogga, and South and North Goa.

In April 2024, E-commerce giant Flipkart has set up its second grocery fulfilment centre in Andhra Pradesh at Visakhapatnam. The new facility, spread over 77,000 sq ft, will cater to next-day delivery of groceries with a range of over 6,000 products including dairy, eggs, chocolates and staples.

Product Types Covered:
• Fresh Produce
• Bakery
• Deli & Prepared Meals
• Meat, Seafood & Poultry
• Dairy
• Dry Grocery
• Canned Goods
• Frozen Food
• Beverages
• Snacks
• Household Goods
• Paper Products
• Plastics
• Personal Care
• Baby Care
• Pet Care
• Other Product Types

Delivery Types Covered:
• Home Delivery
• Click and Collect
• Other Delivery Models

Purchase Types Covered:
• One-time Purchase
• Subscription Purchase

Platforms Covered:
• Mobile Applications
• Websites

Business Models Covered:
• Pure Marketplace
• Hybrid Marketplace
• Other Business Models

Payment Methods Covered:
• Credit/Debit Cards
• Digital Wallets
• Cash on Delivery
• Other Payment Methods

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements