Online Grocery Market generated a revenue of USD 291.0 billion in 2021 and is estimated to reach a value of USD 1,637.1 billion in 2029, exhibiting a CAGR 24.1% over the forecast period, due to rising urban population and the adoption of smart devices.

To have an edge over the competition by knowing the market dynamics and current trends of “Online Grocery Market,” request for Sample Report here

Key Drivers

Rising disposable income of individuals, rising number of smartphone users, shift to convenient shopping, and COVID-19 outbreak are some of the major factors proliferating the growth of the global online grocery market. E-commerce is one of the most evolving industries with the existence of multiple service providers across the world. Online grocery platforms provide a wide variety of products that are not available in local stores. In the current scenario, most of the population is working and busy, thus online shopping of groceries saves time by eliminating the need to stand in the long queue for billing and parking issues. Through online grocery shopping, billing could be done within a few minutes, and products are delivered at the doorstep. With the hectic lifestyle, the inclination towards alternatives that offer flexibility in terms of time, which is estimated to drive the market growth. Growing use of internet services, and the availability of simplified virtual payment methods that make virtual platforms easier and more convenient for customers have bolstered the online grocery industry. In addition, the emerging trend of sustainable delivery and eco-friendly packaging will further stimulate the market growth, due to the rising environmental concerns. Moreover, online vendors provide multiple offers and discounts, which gains customers’ focus. The products ordered online could even be returned or replaced through a home pickup facility. Thus, all these remarkable benefits of online platforms are shifting customers’ focus from traditional to online grocery shopping.

Additionally, several other factors which include the growing demand for fresh and high-quality food products, remarkable switch towards hassle-free shopping experiences, and the strong promotional activities and brand endorsements by producers on social media platforms are projected to augment the market growth in the upcoming years. Besides this, the integration of voice ordering features and advanced technologies which include big data, artificial intelligence (AI), predictive analytics, and the internet of things (IoT) to help brands predict customer behavior for advertisement will offer enormous opportunities to the market. However, a reduction in inventory & restock ability and the lack of operational manufacturing facilities might hamper the market growth.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Product Segment Analysis

Based on products, the market is segmented into fresh produce, breakfast & diary, snacks & beverages, meat & seafood, staples & cooking essentials, and others. Among these, the staples & cooking essentials are expected to lead the market in 2019. Staples & cooking essentials include cereals, root vegetables, fruits, and others which are basic necessity for human survival. Thus, the segment is expected to lead the market during forecast period as well. Additionally, the breakfast & dairy products segment is expected to observe a higher CAGR during the forecast period. This is due to the high demand for milk, curd, yogurt, and others among individuals. With the busy lifestyle, people have started consuming healthy products which increases the growth of the segment globally.

In case, any of your pain points areas are not covered in the current scope of this report, Request for Free Customization here

Regional Analysis

Based on region, North America would lead the region during the forecast period. This is attributed to the existence of key players in the market in the region. The consumers are technologically advanced in the region and thus by grocery through online mode. The increasing penetration of e-commerce platforms along with the rapid digitization across the region is projected to support the expansion of the online grocery market in North America.

Additionally, Asia-Pacific is projected to advance at a higher CAGR during the forecast period owing to the increasing disposable income and changing lifestyles of citizens in developing countries. Strategic initiatives enforced by the government across nations such as India and China, to promote e-commerce and digitalization, will offer enormous opportunities to the market. For instance, in June 2016, the Indian Government offered 100% FDI in food retail, including via e-commerce channels, provided the items are produced, processed, and manufactured indigenously.

The major players in the market include AEON Co., Ltd., Alibaba Group Holding Ltd., Amazon.com, Inc., Grofers India Pvt. Ltd., Instacart Inc., JD.com, Inc., Rakuten Inc., Target Brands, Inc., Tesco.com Ltd., and Walmart Inc. 

Key Developments:

• • In 2021, Walmart decided to expand its automated systems for online grocery orders for pick-and-pack shoppers, intending to expand its high-tech systems that pick and pack online grocery orders. As a result of the Coronavirus pandemic, the company’s online grocery orders spiked. It’s now doing its darndest to keep its competitors at bay by keeping its prices low.
  • In 2021, Alimentation Couche-Tard Inc., a Canadian convenience store decided to acquire Carrefour S.A., a French multinational retail company to launch its 26,000 number of food and grocery stores in U.S. and Canada.
  • In 2020, Instacart, an American retail company collaborated with C&S Wholesale Grocers to provide e-commerce solution to the 3,000 independent C&S wholesale retailers in the U.S. This enabled partner company to expand its online presence in the U.S. market.
  • In 2018, Kroger Co. partnered with Alibaba Group Holding Ltd., to sell supplements, nuts, and other products in China. Kroger sells products of Simple Truth brand on virtual storefront of Alibaba named Tmall Global.
  • In 2018, Walmart partnered with Rakuten Inc., to open online grocery store service in Japan and for sale of other goods which include outdoor items, clothing, and kids toys.

The global online grocery market has been segmented on the basis of product, business model and region. Based on product, the market is segmented into fresh produce, breakfast & diary, snacks & beverages, meat & seafood, staples & cooking essentials, and others. Based on business model, the market is segmented into Pure Play & Hyperlocal Delivery.

For detailed scope of the “Online Grocery Market” report request a Sample Copy of the report

Key questions answered in this research report:

• • At what pace is global online grocery market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in global online grocery market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global online grocery market?
  • What are the various products of global online grocery market and how they are poised to grow?
  • Which product type generated maximum revenues in 2019 and identify the most promising product type during the forecast period?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Revenues (2021)	USD 291.0 billion
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Product, By Business Model, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	AEON Co., Ltd., Alibaba Group Holding Ltd., Amazon.com, Inc., Grofers India Pvt. Ltd., Instacart Inc., JD.com, Inc., Rakuten Inc., Target Brands, Inc., Tesco.com Ltd., Walmart Inc among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Online Grocery Market by Product

• • Fresh Produce
  • Breakfast & Diary
  • Snacks & Beverages
  • Meat & Seafood
  • Staples & Cooking Essentials
  • Others

Global Online Grocery Market by Business Model

• • Pure Play
  • Hyperlocal Delivery

Global Online Grocery Market by Region

• • North America Online Grocery Market (Option 1: As a part of the free 25% customization)
    • North America Online Grocery Market by Product
    • North America Online Grocery Market by Business Model
    • US Online Grocery Market All-Up
    • Canada Online Grocery Market All-Up
  • Europe Online Grocery Market (Option 2: As a part of the free 25% customization)
    • Europe Online Grocery Market by Product
    • Europe Online Grocery Market by Business Model
    • UK Online Grocery Market All-Up
    • Germany Online Grocery Market All-Up
    • France Online Grocery Market All-Up
    • Spain Online Grocery Market All-Up
    • Rest of Europe Online Grocery Market All-Up
  • Asia-Pacific Online Grocery Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Online Grocery Market by Product
    • Asia-Pacific Online Grocery Market by Business Model
    • India Online Grocery Market All-Up
    • China Online Grocery Market All-Up
    • Japan Online Grocery Market All-Up
    • Rest of APAC Online Grocery Market All-Up
  • RoW Online Grocery Market (Option 4: As a part of the free 25% customization)
    • RoW Online Grocery Market by Product
    • North America Online Grocery Market by Business Model
    • Brazil Online Grocery Market All-Up
    • South Africa Online Grocery Market All-Up
    • Saudi Arabia Online Grocery Market All-Up
    • UAE Online Grocery Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Online Grocery Market All-Up

Global Online Grocery Leading Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • AEON Co., Ltd.
  • Alibaba Group Holding Ltd.
  • com, Inc.
  • Grofers India Pvt. Ltd.
  • Instacart Inc.
  • com, Inc.
  • Rakuten Inc.
  • Target Brands, Inc.
  • com Ltd.
  • Walmart Inc