Online Grocery - Global Strategic Business Report

The global market for Online Grocery was estimated at US$925.5 Billion in 2023 and is projected to reach US$2.0 Trillion by 2030, growing at a CAGR of 11.6% from 2023 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

How Has the Online Grocery Market Evolved in Recent Years?

The online grocery market has witnessed remarkable growth over the past decade, transforming from a niche service to a mainstream shopping option. The global pandemic in 2020 accelerated this trend, as lockdowns and safety concerns forced consumers to seek alternatives to traditional brick-and-mortar stores. Pre-pandemic, online grocery platforms were already gaining popularity due to the convenience they offered, but the crisis catalyzed their expansion into new demographics and regions. Innovations such as contactless delivery and curbside pickup also became critical components of the shopping experience, easing concerns over physical interaction and supporting widespread adoption. The variety of products available through online grocery platforms has also expanded, with fresh produce, frozen goods, and even artisanal items becoming accessible through these platforms, helping to eliminate the limitations once associated with online food shopping.

What Are the Emerging Consumer Preferences in Online Grocery Shopping?

Consumer preferences have evolved significantly in the online grocery space, driven by a combination of convenience, customization, and time-saving benefits. Modern shoppers are increasingly drawn to subscription services that ensure regular deliveries of staple items such as milk, bread, and eggs, reducing the need for repeated orders. In addition, there has been a growing demand for organic, locally sourced, and eco-friendly products, as more consumers become conscious of their health and the environmental impact of their purchasing choices. Another critical shift is the demand for transparency and trust in supply chains; customers want to know where their products come from, how they are sourced, and what sustainability measures are in place. This demand has prompted many online grocery platforms to incorporate tracking features, allowing consumers to trace the origin of their food products. Personalization is another key trend, with AI-powered recommendations enhancing the shopping experience by suggesting products based on individual consumer preferences and purchasing history.

How Are Technology Advancements Shaping the Online Grocery Sector?

The rapid advancement of technology has played a pivotal role in the transformation of the online grocery sector. E-commerce platforms have adopted advanced logistics solutions to streamline the order fulfillment process, reducing delivery times and improving the efficiency of inventory management. The integration of artificial intelligence (AI) and machine learning (ML) has allowed retailers to predict demand more accurately and optimize stock levels, thus minimizing waste and avoiding shortages. Additionally, the use of autonomous vehicles and drones for delivery is an emerging technology that is being piloted in select markets, promising to further reduce costs and enhance delivery speed. Cloud-based systems, combined with Internet of Things (IoT) technology, are enabling smart refrigerators and pantries that can track stock levels in real-time and automatically reorder essential groceries. Such innovations are transforming not just how groceries are delivered but how they are consumed and restocked. Mobile applications have also become central to the online grocery experience, enabling users to shop seamlessly, track orders, and manage deliveries all in one place.

What Is Driving the Growth in the Online Grocery Market?

The growth in the online grocery market is driven by several factors, each of which is shaping the future of this fast-evolving sector. First and foremost, the increasing consumer shift toward digital platforms for shopping - driven by convenience, speed, and accessibility - has been a major driver. Urbanization and busy lifestyles are pushing consumers to seek time-efficient alternatives to traditional shopping, which online grocery platforms provide. Technological advancements, including the widespread adoption of smartphones and improvements in mobile network infrastructure, have expanded access to e-grocery platforms in both urban and rural areas. Furthermore, changing consumer behaviors, such as the rise in health consciousness and the demand for organic and locally sourced products, have fueled demand for niche online grocery services. Retailers are also using big data analytics to personalize the shopping experience, offering tailored promotions and recommendations that increase customer engagement. Lastly, the competitive pressure from retailers and venture-backed startups has spurred investments in last-mile delivery solutions, making online grocery services more reliable and cost-effective. As a result, the online grocery market is poised for continued growth, supported by a blend of consumer trends, technological advancements, and evolving supply chain dynamics.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Breakfast & Dairy segment, which is expected to reach US$588.7 Billion by 2030 with a CAGR of a 12.7%. The Staples & Cooking Essentials segment is also set to grow at 13.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, which was valued at $252.1 Billion in 2023, and China, forecasted to grow at an impressive 15.8% CAGR to reach $435.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Online Grocery Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Online Grocery Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Online Grocery Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2023 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of major players such as Albertsons Companies, Inc., Amazon.com, Inc., Fresh Direct, LLC, and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 156 Featured):

• Albertsons Companies, Inc.
• Amazon.com, Inc.
• Fresh Direct, LLC
• Koninklijke Ahold Delhaize N.V.
• My Brands Inc.
• mySupermarket Ltd
• ShopFoodEx
• Wal-Mart Stores, Inc.