Australia Online Grocery Delivery Market Report and Forecast 2025-2034

According to this report, the Australia online grocery delivery market size reached AUD 15.73 billion in 2024. Aided by changing consumer behaviour, the convenience of home delivery, and advancements in technology, the market is expected to grow at a CAGR of 12.4% between 2025 and 2034, reaching almost AUD 51 Billion by 2034.

According to the Australia online grocery delivery market analysis, is Australians are increasingly turning to online platforms to purchase groceries, with a rising preference for the convenience and flexibility that online grocery services provide. This is supported by the evolving lifestyles and the growing demand for quicker and more efficient shopping experiences, especially in urban areas where time constraints make traditional grocery shopping more challenging.

The rapid adoption of smartphones and high-speed internet has played a pivotal role in shaping the Australia online grocery delivery market . Mobile apps and user-friendly online platforms have made it easier for consumers to browse, order, and have their groceries delivered to their doorstep. The convenience of shopping from home, combined with the ability to access a wide range of products, has contributed to the increasing popularity of online grocery services. In particular, the ability to quickly restock essentials, save time, and avoid crowded stores has attracted a large number of consumers to the market.

Another key factor driving the Australia online grocery delivery market dynamics is the growing trend of e-commerce. As more Australians become accustomed to shopping online for various goods and services, the transition to purchasing groceries online has become more natural. Additionally, the increased awareness of the benefits of online shopping, such as home delivery and real-time tracking, has made it an appealing option for busy consumers who seek to streamline their shopping process. The pandemic also accelerated this shift, with many people turning to online grocery delivery services as a safer and more convenient way to shop during lockdowns and restrictions.

The growth of the Australia online grocery delivery market is supported by significant advancements in logistics and delivery infrastructure, allowing for quicker and more reliable delivery times. Many online grocery platforms now offer same-day or next-day delivery, which has further fuelled consumer demand. The evolution of inventory management systems and the expansion of distribution centres have enabled providers to handle larger volumes of orders efficiently, ensuring that groceries reach customers in a timely manner. This improved efficiency has led to an increase in the number of consumers choosing online grocery delivery services.

Furthermore, the Australia online grocery market share is benefiting from the increasing demand for healthier food options and more sustainable shopping practices. Consumers are becoming more conscious of their food choices, opting for fresh, organic, and locally sourced products. Many online grocery delivery services in Australia have capitalised on this shift by offering a wide range of organic, gluten-free, and vegan options to cater to these health-conscious consumers. Additionally, the rising awareness of environmental concerns has led to a demand for eco-friendly packaging and delivery methods, prompting many service providers to implement greener practices in their operations.

With the rise of subscription-based models and personalised services, the Australia online grocery delivery market outlook will be significantly enhanced. Some online grocery platforms now offer subscription options, where consumers can receive regular deliveries of essential items on a weekly or monthly basis. This model appeals to time-poor consumers who prefer the convenience of having their groceries delivered automatically, without having to remember to place an order each time. Furthermore, the use of advanced algorithms and artificial intelligence has enabled many platforms to offer tailored recommendations based on customers’ previous shopping habits, making the shopping experience more personalised and efficient.

Despite the positive outlook, the intensifying competition will pose as a major challenge for the Australia online grocery delivery market, with players constantly seeking to enhance their service offerings to attract and retain customers and both established grocery chains and new entrants vying for market share.

Major supermarket players, such as Woolworths, Coles, and IGA, have all expanded their online grocery services to cater to the growing demand for home delivery. These larger companies have the advantage of established brands, extensive product ranges, and loyal customer bases. However, niche players, particularly smaller, specialised online grocery platforms, are also gaining traction by offering unique value propositions, such as organic products, specialty foods, or faster delivery times.

Looking ahead, the Australia online grocery market will witness the emergence of partnerships with third-party delivery services, such as Uber Eats, Menulog, and DoorDash. These collaborations enable grocery providers to reach a wider audience and offer more flexible delivery options, such as express delivery or last-mile delivery solutions. The ongoing development of logistics infrastructure and delivery systems will also be crucial in ensuring that consumers receive their orders quickly and efficiently. Additionally, the increasing demand for eco-friendly practices presents opportunities for providers to innovate and differentiate themselves through sustainable packaging and greener delivery methods.

Market Segmentation

The market can be divided based on product type, delivery type, platform, and region.

Market Breakup by Product Type

• Breakfast and Cereal
• Household and Cleaning Products
• Beauty and Personal Care
• Fresh Produce
• Snacks and Beverages
• Staple and Cooking Essentials
• Others

Market Breakup by Delivery Type

• Instant Delivery
• Schedule Delivery

Market Breakup by Platform

• Web-Based
• App-Based

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia online grocery delivery market.

Some of the major players explored in the report are as follows:

• Uber Technologies, Inc.
• Woolworths Group Limited
• Produce Drop Pty Ltd.
• Grocery Delivery eServices Australia Pty Ltd. (HelloFresh)
• Metcash Trading Limited
• Others