Online Grocery Market Report 2026

The online grocery market size has grown exponentially in recent years. It will grow from $655.51 billion in 2025 to $794.86 billion in 2026 at a compound annual growth rate (CAGR) of 21.3%. The growth in the historic period can be attributed to rising internet penetration, growth of smartphone usage, increasing urban population, expansion of digital payment systems, changing consumer lifestyles.

The online grocery market size is expected to see exponential growth in the next few years. It will grow to $1.72 trillion in 2030 at a compound annual growth rate (CAGR) of 21.3%. The growth in the forecast period can be attributed to AI-driven demand forecasting, expansion of dark stores, growth of quick commerce models, increasing focus on sustainable sourcing, rising penetration in tier 2 and tier 3 cities. Major trends in the forecast period include personalized grocery recommendations, sustainable packaging adoption, expansion of instant delivery services, growth of private label online brands, increased demand for contactless shopping.

A growing inclination toward digital shopping driven by convenience and safety is anticipated to support the expansion of the online grocery market in the coming years. Digital shopping, also referred to as online shopping or e-commerce, involves purchasing products or services through an internet connection using a website or mobile application. In the context of grocery retail, digital shopping offers convenience and saves time by enabling consumers to browse, select, and buy products from their homes, along with the added advantage of home delivery. For example, in December 2025, according to the US Census Bureau, a US-based government agency, e-commerce sales in the third quarter of 2025, adjusted for seasonal variation but not for price changes, totaled US$310.3 billion, representing a 5.1% increase compared to the third quarter of 2024 and accounting for 16.4% of total retail sales. As a result, the increasing preference for digital shopping due to convenience and safety is fueling growth in the online grocery market.

Leading companies in the online grocery market are embracing subscription models and membership programs, including B2B membership platforms, to better cater to the needs of their existing consumers. B2B membership platforms in the online grocery sector serve as digital hubs that connect businesses within the supply chain, facilitating transactions and collaboration among suppliers, distributors, and retailers. For instance, in October 2023, Bundl Technologies Private Limited (Swiggy), an India-based company operating an online food ordering platform, launched Swiggy One Lite. This new and more economical variant of Swiggy One, the membership club, offers benefits for meals, groceries, and pick-up and delivery services. Swiggy One Lite provides perks such as free delivery, special deals, and discounts, with a starting price of Rs 99 for three months. The Lite version is available as a B2B membership, bundled with offerings from major brand partners in the telecom and banking sectors.

In March 2025, Talabat Holdings Ltd., a UAE-based technology and online delivery company, acquired InstaShop for approximately $32 million. Through this acquisition, Talabat seeks to enhance and scale its grocery and retail services across the Middle East and North Africa (MENA) region by broadening its merchant partner ecosystem, facilitating cross-platform listings, and improving operational efficiency through integrated logistics and optimized fleet utilization. InstaShop Ltd. is a UAE-based e-commerce company focused on on-demand grocery and retail delivery, connecting consumers with local supermarkets, pharmacies, and other retailers via a digital marketplace platform.

Major companies operating in the online grocery market are Amazon.com Inc., The Kroger Company, Alibaba Group, Target Corporation, Koninklijke Ahold Delhaize N.V., Edeka group, Albertsons Companies, Inc., Getir, Uber Eats, Delivery Hero, Doordash, ALDI Inc., Flipkart Supermart, Just Eat, Jio Mart, Auchan SA, ASDA Groceries, Instacart, Safeway Inc., FreshDirect LLC.

Asia-Pacific was the largest region in the online grocery market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the online grocery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the online grocery market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

The online grocery market consists of revenues earned by entities by providing services such as in-store pickup, home delivery, flexible shopping, and 24/7 ordering. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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