Enjoy complimentary customisation on priority with our Enterprise License!
The online grocery delivery services market is estimated to grow by USD USD 1,120.4 billion, at a CAGR of 25.2% between 2023 and 2028. The e-commerce platform is experiencing a surge in popularity and adoption, with rapid growth seen particularly in m-commerce. This trend is fueled by the convenience and accessibility of shopping through mobile devices. Additionally, there's a growing preference for fast delivery services, driven by the desire for instant gratification among consumers. As a result, businesses are increasingly prioritizing efficient logistics and streamlined processes to meet these demands. This evolution signifies a significant shift in consumer behavior towards digital transactions and the expectation of swift, seamless shopping experiences.
Market size, Request for Free Report Sample
Innovations in improved websites and mobile application design, coupled with faster delivery times and enhanced logistics, are reshaping the landscape of online shopping delivery services. As revenue share grows, platforms leverage multiple channels to reach a wider customer base, offering convenient delivery options and diverse product offerings. Prioritizing customer experience, delivery types adapt to social distancing norms, ensuring safety. With a focus on quality and freshness, individual consumers benefit from time-saving options across categories like fresh fruits and vegetables, dairy products, meat and seafood, staple foods, bakery products, and staple meals. Per capita expenses on household and grocery items vary across economic areas, reflecting current trends and anticipated future changes, driving expansion strategies for international producers and suppliers amidst the current situation while eyeing promising future prospects.
The substantial growth in m-commerce is a key driver of the online grocery market. This surge is primarily attributed to the widespread use of smartphones globally. Mobile apps enable consumers to shop conveniently from anywhere, even while in transit. Major e-commerce and online retail players, including Amazon, have transitioned from e-commerce to m-commerce channels or operate through both platforms.
While e-commerce penetration is already high in developed regions like North America and Europe, driven by the extensive use of laptops and desktops, developing regions, particularly Asia, present significant growth opportunities for online retailers due to the rising demand for and use of m-commerce. In these regions, where smartphone usage is prevalent and mobile subscriptions are on the rise, people heavily rely on their smartphones for internet access. This rapid growth in the e-commerce industry is expected to drive the expansion of the online grocery market throughout the forecast period.
The key trend propelling online grocery market growth is the rising demand for functional foods and beverages globally. Consumers are increasingly drawn to these products for various health benefits, including improved immune system, mental strength, heart rate, digestive health, hydration, electrolyte replenishment, and gut function. The growing popularity of non-traditional fitness activities, such as yoga and aerobics, has led consumers to prefer functional foods as a source of nutrition. This demand is met through online purchases as functional products may not be readily available in physical stores. To capture this demand, vendors strategically market these products with effective labeling and formulation. Online grocers and grocery delivery services are expanding their product portfolios by featuring and offering these items, contributing to the overall growth of the online grocery market.
Intense competition from offline retail stores poses a significant challenge to the growth of the online grocery market. Traditional grocers and brick-and-mortar outlets, particularly unorganized local grocery retailers, are formidable rivals for online grocery delivery service providers. In nations like India, unorganized local grocery retailers attract customers with various offers, services, and discounts, including product exchanges and free doorstep delivery. Online players struggle to compete, especially in price-sensitive developing countries where consumers prioritize delivery methods. Additionally, limited product availability in certain areas hampers the adoption of online grocery delivery services. These factors collectively impede the global growth of online grocery markets.
For details analysis BUY FULL MARKET REPORT.
The market share growth of the individuals segment will be significant during the forecast period. Individuals is the largest segment of the global online grocery services market and will continue to remain the largest segment during the forecast period. The segment is accounting for the highest market share in 2022, mainly due to the growing demand for convenient shopping platforms, especially by the millennials and baby boomers.
The individuals segment was valued at USD 208.50 billion in 2018. An increase in the number of dual-income households owing to the rising working women population has boosted the spending power and led to a hectic life. Hence, millennials look for shopping services that offer the desired products in the comfort of their home. Other factors that will drive the demand for online grocery delivery services among individuals include the huge discounts and deals compared to brick-and-mortar stores and options to save preferences and opt for subscription plans for timely grocery delivery.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 57% to the growth of the global market during the forecast period. APAC dominates the global online grocery delivery market, driven by rising incomes, Westernized buying habits, and increased awareness of online shopping. Consumer Packaged Goods (CPG) manufacturers offer budget-friendly products, meeting demand both online and offline. Online grocery shopping is thriving in APAC, especially among millennials, supported by robust distribution networks, including major online platforms. Key markets like Japan, India, Australia, and China see expansion by global industry leaders. The region's growing middle-class population, expected to reach one and a half billion by 2035, presents substantial opportunities, with increased consumption of premium non-food items and a rising preference for organic and natural packaged foods.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
You may also interested in below market reports:
In an era dominated by digital convenience, the online grocery delivery services market has witnessed remarkable growth. As consumers increasingly prioritize efficiency and safety, platforms bridge the gap between warehouses and traditional grocery retailers, offering a wide array of products tailored to individual needs. The macroeconomic environment influences consumer behavior, with many becoming more price-conscious and selective in discretionary spending. To meet these demands, providers offer comprehensive options, including full basket-offerings, meal kits, and quick commerce, enhancing convenience for shoppers. Innovations like those seen on platforms like Meituan have led to increased Gross Merchandise Value (GMV) for B2C enterprises, fueled by user metrics and survey results.
With the aid of forecasting techniques and macroeconomic factors, the market anticipates future trends, adapting strategies to cater to evolving consumer preferences. As urbanization and digitization continue to rise, investments in advanced solutions, including mobile applications and user-friendly websites, remain paramount. The coronavirus pandemic has further accelerated the preference for online shopping, particularly for food and groceries, appealing to affluent consumers seeking the convenience of home delivery. With a plethora of options available, ranging from apps and websites offering fruits & vegetables to dairy products and frozen foods, the online grocery delivery services market continues to thrive, reshaping the way consumers shop for essentials.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.2% |
Market Growth 2024-2028 |
USD 1.12 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.77 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 57% |
Key countries |
China, UK, US, Japan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Albertsons Companies Inc., Alibaba Group Holding Ltd., Amazon.com Inc., Blink Commerce Pvt. Ltd., Brandless, Carrefour SA, Coles Group Ltd., Costco Wholesale Corp., Flipkart Internet Pvt. Ltd., HOFER KG, Innovative Retail Concepts Pvt. Ltd., Maplebear Inc., METRO Cash and Carry India Pvt. Ltd., Ocado Group Plc, Rakuten Group Inc., SPAR International, Target Corp., Tesco Plc, The Stop and Shop Supermarket LLC, and Walmart Inc. |
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 the market forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.