The global online grocery market was valued at $258.6 billion in 2022, and is projected to reach $965.4 billion by 2032, growing at a CAGR of 14.3% from 2023 to 2032. The online grocery market refers to the segment of the retail industry where consumers purchase groceries and other household products through digital platforms and have them delivered to their doorstep. It includes the entire process of selecting and buying groceries online, including browsing product catalogs, placing orders, making payments, and organizing delivery. The market has included online grocery stores, traditional retailers expanding into the online space, and on-demand delivery services. The growth drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and the role of each stakeholder.
The online grocery market has witnessed numerous recent developments that are focused on improvement and enhancement of online grocery delivery services. One of the major industry players such as Amazon, which operates as Amazon Fresh, an online grocery company, has invested largely in the Indian market. Furthermore, the market has seen partnerships as the popular choice among the companies for expanding their market presence and businesses. Companies come together to deliver better services to their customers by utilizing each other's existing market capabilities and technologies due to high competition among key online grocery providers.
In addition, companies have invested in their customer fulfillment centers to enhance their consumer convenience. Companies are focusing on integrating new and advanced technologies for speeding up online grocery delivery. The online grocery market is gaining popularity due to its time-saving and convenient nature, as online grocery provides efficient solutions for grocery shopping. Online grocery services help consumers with ordering items from their home without going to a physical store and waiting in long lines at checkout.
This easy and hassle-free experience attracts customers, contributing to the rapid growth of the online grocery market. There has been an increase in the market demand for online groceries owing to technological advancements. In addition, factors such as continuous improvement in e-commerce technology, mobile applications, and logistics make way for user-friendly and efficient shopping experience for customers. Secure payment gateways and streamlined delivery systems increase trust and offer convenience, thus attracting more consumers toward online grocery shopping. Such factors boost the growth of the online grocery market.
Technological advancements play a major role in surging the market demand for the online grocery industry. The continuous progress in e-commerce technology, mobile applications, and logistics has significantly enhanced the overall shopping experience for consumers. User-friendly interfaces and secure payment gateways ensure a seamless and efficient purchasing process, which attracts more customers to adopt online grocery shopping.
Advanced logistics and delivery systems have improved the reliability and speed of product delivery. The integration of data analytics and artificial intelligence allows online grocery platforms to offer personalized recommendations based on individual preferences and past purchases, further enhancing the customer experience. Moreover, technological advancements also enable online grocery retailers to optimize their supply chain management, reducing operational costs and minimizing wastage. This efficiency translates into competitive pricing, making online grocery shopping more appealing to cost-conscious consumers.
The online grocery market is segmented on the basis of product type, delivery type and region. By product type, the market is classified into fresh produce, staple and cooking essentials, RTE food, snacks and beverages, bakery and confectionery, dairy products, breakfast and cereal, household and, cleaning products, beauty and personal care, baby food and care. and pet food and care. By delivery type, the market is segmented into instant delivery and schedule delivery. Region-wise, the market is analyzed across North America (U.S., Canada, Mexico), Europe (Germany, France, UK, Russia, Spain, Italy, and Rest of Asia-Pacific), Asia-Pacific (China, India, Japan, Australia, South Korea, and Rest of Europe), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have also been focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the online grocery market include Rakuten Group, Inc., Reliance Retail Limited, Amazon.com, Inc., Walmart Inc., The Kroger Co., Albertsons Companies, Inc., Tesco PLC, Woolworths Group Limited, J Sainsbury plc., and Target Corporation.
The online grocery market has witnessed numerous recent developments that are focused on improvement and enhancement of online grocery delivery services. One of the major industry players such as Amazon, which operates as Amazon Fresh, an online grocery company, has invested largely in the Indian market. Furthermore, the market has seen partnerships as the popular choice among the companies for expanding their market presence and businesses. Companies come together to deliver better services to their customers by utilizing each other's existing market capabilities and technologies due to high competition among key online grocery providers.
In addition, companies have invested in their customer fulfillment centers to enhance their consumer convenience. Companies are focusing on integrating new and advanced technologies for speeding up online grocery delivery. The online grocery market is gaining popularity due to its time-saving and convenient nature, as online grocery provides efficient solutions for grocery shopping. Online grocery services help consumers with ordering items from their home without going to a physical store and waiting in long lines at checkout.
This easy and hassle-free experience attracts customers, contributing to the rapid growth of the online grocery market. There has been an increase in the market demand for online groceries owing to technological advancements. In addition, factors such as continuous improvement in e-commerce technology, mobile applications, and logistics make way for user-friendly and efficient shopping experience for customers. Secure payment gateways and streamlined delivery systems increase trust and offer convenience, thus attracting more consumers toward online grocery shopping. Such factors boost the growth of the online grocery market.
Technological advancements play a major role in surging the market demand for the online grocery industry. The continuous progress in e-commerce technology, mobile applications, and logistics has significantly enhanced the overall shopping experience for consumers. User-friendly interfaces and secure payment gateways ensure a seamless and efficient purchasing process, which attracts more customers to adopt online grocery shopping.
Advanced logistics and delivery systems have improved the reliability and speed of product delivery. The integration of data analytics and artificial intelligence allows online grocery platforms to offer personalized recommendations based on individual preferences and past purchases, further enhancing the customer experience. Moreover, technological advancements also enable online grocery retailers to optimize their supply chain management, reducing operational costs and minimizing wastage. This efficiency translates into competitive pricing, making online grocery shopping more appealing to cost-conscious consumers.
The online grocery market is segmented on the basis of product type, delivery type and region. By product type, the market is classified into fresh produce, staple and cooking essentials, RTE food, snacks and beverages, bakery and confectionery, dairy products, breakfast and cereal, household and, cleaning products, beauty and personal care, baby food and care. and pet food and care. By delivery type, the market is segmented into instant delivery and schedule delivery. Region-wise, the market is analyzed across North America (U.S., Canada, Mexico), Europe (Germany, France, UK, Russia, Spain, Italy, and Rest of Asia-Pacific), Asia-Pacific (China, India, Japan, Australia, South Korea, and Rest of Europe), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have also been focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the online grocery market include Rakuten Group, Inc., Reliance Retail Limited, Amazon.com, Inc., Walmart Inc., The Kroger Co., Albertsons Companies, Inc., Tesco PLC, Woolworths Group Limited, J Sainsbury plc., and Target Corporation.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the online grocery market analysis from 2022 to 2032 to identify the prevailing online grocery market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the online grocery market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global online grocery market trends, key players, market segments, application areas, and market growth strategies.
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- Technology Trend Analysis
- Average Consumer Expenditure
- Distributor margin Analysis
- Go To Market Strategy
- Historic market data
Key Market Segments
By Product Type
- Fresh Produce
- Staple and Cooking Essentials
- RTE Food
- Snacks and Beverages
- Bakery and Confectionery
- Dairy Products
- Breakfast and Cereal
- Household and Cleaning Products
- Beauty and Personal Care
- Baby Food and Care
- Pet Food and Care
By Delivery Type
- Instant Delivery
- Schedule Delivery
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Russia
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Argentina
- Saudi Arabia
- UAE
- South Africa
- Rest of LAMEA
- Key Market Players
- Rakuten Group, Inc.
- Reliance Retail Limited
- Amazon.com, Inc.
- Walmart Inc.
- The Kroger Co.
- Albertsons Companies, Inc.
- Tesco PLC
- Woolworths Group Limited
- J Sainsbury plc.
- Target Corporation
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: ONLINE GROCERY MARKET, BY PRODUCT TYPE
CHAPTER 5: ONLINE GROCERY MARKET, BY DELIVERY TYPE
CHAPTER 6: ONLINE GROCERY MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the online grocery market was valued at $258.6 billion in 2022, and is estimated to reach $965.4 billion by 2032, growing at a CAGR of 14.3% from 2023 to 2032.The online grocery market refers to the digital platform where consumers can purchase various food and household products over the Internet. This digital marketplace offers convenience, a wide product selection, and time-saving benefits to consumers.
The online grocery market has witnessed numerous recent developments that are focused on improvement and enhancement of online grocery delivery services. One of the major industry players such as Amazon, which operates as Amazon Fresh, an online grocery company, has invested largely in the Indian market. Furthermore, the market has seen partnerships as the popular choice among the companies for expanding their market presence and businesses. Companies come together to deliver better services to their customers by utilizing each other's existing market capabilities and technologies due to high competition among key online grocery providers.
In addition, companies have invested in their customer fulfillment centers to enhance their consumer convenience. Companies are focusing on integrating new and advanced technologies for speeding up online grocery delivery. The online grocery market is gaining popularity due to its time-saving and convenient nature, as online grocery provides efficient solutions for grocery shopping. Online grocery services help consumers with ordering items from their home without going to a physical store and waiting in long lines at checkout.
This easy and hassle-free experience attracts customers, contributing to the rapid growth of the online grocery market. There has been an increase in the market demand for online groceries owing to technological advancements. In addition, factors such as continuous improvement in e-commerce technology, mobile applications, and logistics make way for user-friendly and efficient shopping experience for customers. Secure payment gateways and streamlined delivery systems increase trust and offer convenience, thus attracting more consumers toward online grocery shopping. Such factors boost the growth of the online grocery market.
An increase in internet penetration also contributes to the market demand for online groceries. The potential market for online grocery is expanding in a diverse range of customers from various demographics with the increasing accessibility of the internet. Moreover, there has been a significant change in consumer buying behavior, with growing comfort and trust in online transactions. As a result, the convenience of online shopping propels the growth of the online grocery market.
The availability of a wide range of products on online platforms is a key factor driving the market growth of the online grocery market. Online grocery platforms offer a wide range of products and different brands, including specialty products, international goods, and dietary options, which are not always available in traditional brick-and-mortar stores. This diverse range of choices attracts customers with unique preferences, leading to increased consumer interest in shopping online.
Urbanization has fueled the market demand for the online grocery industry, as online grocery platforms offer time-saving benefits, a wide range of products, and doorstep delivery, making them attractive options for the urban population. In addition, the availability of high-speed internet and smartphones further facilitates the adoption of online grocery shopping, boosting market growth.
There is an increase in the demand for online grocery due to the shift in last-mile delivery solutions and effective promotional strategies. Improved last-mile delivery options, such as using delivery drones, automated vehicles, and small warehouses, which ensure faster and more reliable deliveries, attracting more customers. In addition, online grocery retailers employ promotional strategies like discounts, cashback offers, and loyalty programs to offer unique shopping experience and foster customer loyalty. These tactics enhance the overall shopping experience, encouraging people to opt for online grocery shopping.
The online grocery market is segmented on the basis of product type, delivery type and region. By product type, the market is classified into fresh produce, staple and cooking essentials, RTE food, snacks and beverages, bakery and confectionery, dairy products, breakfast and cereal, household and, cleaning products, beauty and personal care, baby food and care. and pet food and care. By delivery type, the market is segmented into instant delivery and schedule delivery. Region-wise, the market is analyzed across North America (U.S., Canada, Mexico), Europe (Germany, France, UK, Russia, Spain, Italy, and Rest of Asia-Pacific), Asia-Pacific (China, India, Japan, Australia, South Korea, and Rest of Europe), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. They have also been focusing on strengthening their market reach to maintain their goodwill in the ever-competitive market. Some of the key players in the online grocery market include Rakuten Group, Inc., Reliance Retail Limited, Amazon.com, Inc., Walmart Inc., the Kroger Co., Albertsons Companies, Inc., Tesco PLC, Woolworths Group Limited, J Sainsbury plc., and Target Corporation.
Companies Mentioned
- Rakuten Group, Inc.
- Reliance Retail Limited
- Amazon.com, Inc.
- Walmart Inc.
- The Kroger Co.
- Albertsons Companies, Inc.
- Tesco PLC
- Woolworths Group Limited
- J Sainsbury plc.
- Target Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 300 |
| Published | September 2023 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value ( USD | $ 258.6 billion |
| Forecasted Market Value ( USD | $ 965.4 billion |
| Compound Annual Growth Rate | 14.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
