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The online grocery delivery services market size is poised to grow by USD 652.45 billion accelerating at a CAGR of 19.43% between 2022 and 2027. Additionally, the market is fragmented in nature and shows a YOY growth of 18.26%. The report covers diverse dimensions such as the market size of forecast and historic data, influential drivers, analysis of prominent vendors, and evolving trends, presenting a comprehensive outlook on the global market scenario. Consumers today prefer to order groceries from the comfort of their own homes rather than visiting stores physically, which is expected to drive the growth of the online grocery services market in the years to come. The comprehensive report on the online grocery delivery services market offers crucial insights into the industry's changing dynamics, helping businesses identify growth opportunities in the constantly evolving digital retail landscape.
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The market is undergoing a transformative shift fueled by logistics advancements and widespread smart mobile usage. As per capita expenses fluctuate, consumers turn to digital platforms for household & grocery items, reshaping economic landscapes. Amid industry turmoil, current trends spotlight seamless delivery experiences and personalized offerings, with significant players expanding internationally. With rapid digitization and evolving macro-economic factors, future prospects appear promising, driven by urbanization and strategic investments in advanced solutions like mobile applications. Platforms bridge customers and traditional retailers, catering to price-conscious consumers with full-basket offerings and meal kits.
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.
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.
The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth. For details analysis BUY FULL REPORT.
Exponential trend smoothing, online grocery service providers adapt to the evolving needs of Internet users and the expanding urban population. With shifting attitudes toward online services, data insights from platforms like GCS inform strategies, while the prevalence of smart mobiles drives accessibility. Balancing profit margins with offerings like fresh produces, providers address rising investment requirements amid developing technology and new laws. Offering a wide range of products, particularly in the cooking essentials category, platforms cater to busy lifestyles affected by traffic jams and extended working hours. Embracing rapid urbanization and the adoption of smartphones, online grocery retailers prioritize convenience with door delivery and easy access, aligning with new social norms through user-friendly features and diverse payment options via shopping applications. Enhanced logistics ensure timely delivery of fresh food, meeting the demands of today's discerning consumers.
The market share growth of the individual 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 individual segment was valued at USD 178.45 billion in 2017 and continued to grow until 2021. 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.
Thus, the above-mentioned benefits of online grocery delivery services to individuals will drive the growth of the market in focus through the individual's segment during the forecast period.
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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.
Target Corp. - The company offers online grocery delivery services for dairy, deli, snacks and breakfast cereal as it is a key offering. The company is focused on offering everyday essentials and fashionable, differentiated merchandise through its digital channels and stores.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
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 |
163 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.43% |
Market growth 2023-2027 |
USD 652.45 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.26 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, Japan, UK, 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 Inc., 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 Forecasting ,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 forecast period |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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