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The instant grocery market size is estimated to grow by USD 104.4 billion at a CAGR of 14.76% between 2023 and 2028. In today's fast-paced world, the demand for convenience and accessibility has led to a significant increase in the adoption of technology, particularly in the financial sector. Online banking services have become a necessity for individuals and businesses, offering unparalleled convenience and ease of access. These services enable users to manage their finances from anywhere, at any time, through various digital channels such as mobile apps, websites, and automated teller machines. By leveraging advanced technologies like artificial intelligence, machine learning, and biometric authentication, online banking providers ensure secure and seamless transactions. This not only saves time but also enhances the overall banking experience, making it an indispensable part of modern life.
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The market refers to the sale of food and non-food products through online platforms, including e-commerce websites, mobile applications, and e-commerce operations. This market segment is gaining significant traction as consumers increasingly prefer the convenience of shopping for groceries online. The market includes a wide range of products such as food items like Breakfast and Dairy, Snacks and Beverages, Fresh Produce, and non-food items like Cleaning Essentials. Physical supermarkets and traditional grocery stores are facing stiff competition from online grocers who offer instant delivery applications and quick-commerce services. This has become a game-changer in the grocery industry, allowing consumers to order food and other essentials online and receive them within hours. Technological developments, such as smart tracking and real-time inventory management, are enhancing the online shopping experience and making it more efficient. Despite the convenience of online shopping, there are still delivery charges that can add to the overall cost. The market is expected to continue growing as more consumers embrace the convenience of online retail and the availability of a wider range of products. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased adoption of technology is notably driving market growth. Instant grocery delivery has emerged as a promising growth area for mobility and e-commerce companies, as the trend shifts from traditional supermarkets to online retail. This service goes beyond transporting goods from the warehouse to customers; it now focuses on satisfying daily requirements for particular goods such as wheat flour, grains, oil, spices, snacks and beverages, meat and seafood, and fresh groceries. Technological developments, including contactless delivery, smart tracking, dynamic route optimization, and enhanced analytical insights, are transforming last-mile delivery.
Moreover, to meet evolving customer expectations and behavior, the retailers are prioritizing home delivery and addressing complex requests like contactless delivery and curbside pickup. The market encompasses a wide range of items, from grains and oil to quick-commerce snacks and beverages, making it an essential part of modern life. The shopping offers convenience and flexibility, enabling customers to save time and effort while ensuring they have the essentials on hand for their daily requirements. Thus, such factors are driving the growth of the market during the forecast period.
Increased order transparency is the key trend in the market. The market is witnessing significant advancements due to evolving customer expectations and technological developments. Traditional grocery retailers are now competing with instant grocery delivery services, quick-commerce apps, and home delivery solutions that offer convenience and quick turnaround times for daily requirements. These services house a wide range of products, including wheat flour, grains, oil, spices, snacks and beverages, meat and seafood, and fresh groceries.
Furthermore, customer demand for real-time transparency in the delivery process is driving the adoption of advanced technologies. Smart tracking, dynamic route optimization, and advanced analytics are being employed by last-mile delivery companies to enhance the efficiency of their supply chains. The last-mile delivery sector is undergoing transformative changes, with instant grocery shopping and delivery applications becoming increasingly popular. This shift is expected to propel the growth of the market during the forecast period. Thus, such trends will shape the growth of the market during the forecast period.
Issue of coping up with technological changes is the major challenge that affects the growth of the market. Instant grocery delivery has emerged as a new segment in the retail industry, offering consumers the convenience of having their daily requirements delivered to their doorstep within 10-20 minutes. However, this quick-commerce model poses unique challenges for e-commerce players. Developing technology that ensures consistent and timely delivery of goods is a significant hurdle. Additionally, managing a supply chain that can respond to the high-touch and high-frequency user case is essential. To achieve under-20-minute deliveries, grocery retailers must have a robust network of retailers under their brand. Existing stores in residential areas are the backbone of most hyperlocal delivery services.
Furthermore, technology integration at the point of sale, reliable internet connectivity for order processing, efficient payment systems, and a dependable network of delivery personnel are the primary areas of focus. The market includes a wide range of products such as wheat flour, grains, oil, spices, snacks and beverages, meat and seafood, and fresh groceries. Technological developments in logistics and delivery applications have made it possible to deliver these goods quickly and efficiently. Shopping has become increasingly popular, especially for those who cannot visit traditional supermarkets regularly due to time constraints or mobility issues. Home delivery of these essentials has become a necessity, and the market is expected to grow significantly in the coming years. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Albertsons Co. Inc - The company offers grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services in stores or through digital channels.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the Nonfood products segment will be significant during the forecast period. Online grocery shopping has revolutionized the way we purchase non-food items, with e-commerce platforms and mobile applications becoming increasingly popular. The grocery industry now offers a wide range of products beyond food, including toiletries, bathroom cleaners, home utilities, and hygiene grooming products. These non-food items are essential for conducting a normal and comfortable life, and their demand is growing as consumers' lifestyles become busier and income levels rise.
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The Nonfood products segment was valued at USD 46.60 billion in 2018. E-commerce operations, such as online orders and delivery, have become the norm for instant grocery shopping. Online retailers, including online grocers, use e-commerce websites and platforms to offer a convenient and time-efficient solution for purchasing non-food products. Delivery charges may apply, but the convenience and speed of receiving these items make them worthwhile for many consumers. The approach also includes the use of electric motorcycles, scooters, and urban dark storefronts for hyperlocal delivery services. Dark stores and fulfillment centers are used to keep these items in stock, and riders on bikes use smart tracking to ensure efficient and timely delivery. Brick-and-mortar establishments still play a role in the supply chain, but the focus is shifting towards online retail and instant delivery. Products like toilet paper, shaving cream, shampoo, conditioners, combs, brushes, knives, straws, paper towels, matches, griddles, dishwashers, compasses, flashlights, batteries, and other personal hygiene, kitchen supplies, and miscellaneous items are all important for daily life. The convenience of instant grocery shopping for these non-food items is a game-changer for busy consumers, making their lives more comfortable and efficient.
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APAC is estimated to contribute 65% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Online grocery shopping has revolutionized the grocery industry with e-commerce platforms and mobile applications becoming the preferred choice for consumers. Food products and non-food items, including Breakfast and Dairy, Snacks and Beverages, Fresh Produce, Cleaning Essentials, Bath and Body, Home Utilities, and convenience items, are now readily available for purchase online. The market is an innovative approach to online shopping, offering quick delivery through electric motorcycles, scooters, and hyperlocal delivery services. Dark stores and fulfillment centers serve as urban dark storefronts, ensuring the availability of a wide range of items. E-commerce operations facilitate online orders, with e-commerce websites and delivery charges streamlining the process. Instant-Delivery Apps employ riders and bikes for smart tracking and efficient delivery, making online retail a convenient alternative to traditional physical supermarkets and grocery stores.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Online Grocery Delivery Services Market: Online Grocery Delivery Services Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, UK, US, Japan, France - Size and Forecast
India - Grocery Market: India - Grocery Market by Product and Platform - Forecast and Analysis
Instant Noodles Market: Instant Noodles Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, Indonesia, India, Japan, US - Size and Forecast
The Future of Shopping in the Grocery Industry Instant grocery is revolutionizing the way we buy food and household essentials. With the rise of e-commerce platforms and mobile applications, consumers can now place online orders for a wide range of items including food products, non-food products, breakfast and dairy, snacks and beverages, fresh produce, cleaning essentials, bath and body items, and home utilities. The grocery industry is rapidly adapting to this instant grocery approach. Online grocers are setting up dark stores, which are urban dark storefronts that function as mini-fulfillment centers for online orders.
Furthermore, these stores are stocked with convenience items and have a smaller footprint compared to traditional physical supermarkets and grocery stores. E-commerce websites and online shopping apps are making the process even more convenient by offering hyperlocal delivery services. Riders on electric motorcycles and scooters use smart tracking to ensure timely delivery. Delivery charges may apply, but the time saved and convenience offered make it worth it for many consumers. In contrast, brick-and-mortar establishments continue to play a significant role in the grocery industry. However, they, too, are adapting to the changing market by offering online ordering and e-commerce operations. The future of grocery shopping lies at the intersection of physical and digital, with consumers having the flexibility to choose between instant delivery via apps or traditional shopping at their local grocery store.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.76% |
Market growth 2024-2028 |
USD 104.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.52 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 65% |
Key countries |
China, US, Japan, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Albertsons Co. Inc, Alphabet Inc., Amazon.com Inc., Blink Commerce Pvt. Ltd., Blue Apron LLC, Buymie Technologies Ltd., Delivery Hero SE, HelloFresh SE, Koninklijke Ahold Delhaize NV, Kroger Co., Maplebear Inc., Ocado Retail Ltd., Reliance Industries Ltd., Target Corp., Tata Sons Pvt. Ltd., Uber Technologies Inc., Walmart Inc., and We Deliver Local Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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