Europe Online Grocery Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Europe Online Grocery Market Size

Europe Online Grocery Market is expected to reach US$ 797.34 billion in 2033 from US$ 178.51 billion in 2024, with a CAGR of 18.09% from 2025 to 2033. The market is expanding quickly as a result of changing consumer behavior, better technology and user experience, substantial supply chain and logistics innovation, a wider range of delivery options, and increased consumer demands for sustainability and health.

Europe Online Grocery Market Global Report by Products (Ready-to-eat Breakfast & Dairy, Staples & Cooking Essentials, Snacks & Beverages, Meat & Seafood, Fresh Produce, Others), Purchaser Type (Subscription Purchase, One Time Purchase), Countries and Company Analysis 2025-2033.

Europe Online Grocery Industry Overview

Online grocery shopping is the practice of buying food and household goods using digital channels, usually mobile apps or websites. Customers may place orders, explore a large selection of foods, and have goods delivered right to their door. The market for online groceries has expanded as a result of better delivery logistics, digital payment methods, and rising convenience demand. Compared to traditional retailers, it gives customers the ability to compare prices, shop whenever they want, and access a wider range of products. Due to changing customer preferences and the increase of tech-savvy, busy lifestyles, the industry is growing.

A number of factors are driving the expansion of the online grocery business in Europe. A major factor is the growing demand from customers for time-saving and convenient solutions, as more buyers choose the convenience of home delivery. Expanded access to online grocery platforms is made possible by increased internet and smartphone usage as well as better digital payment methods. In 2021, 474 million people (86% of the population) in Europe had a mobile service subscription, and by 2025, that number is expected to increase to 480 million, according to GSMA Intelligence. Furthermore, the purchasing experience is further improved by effective logistics and quick delivery choices. The demand is also being driven by shifting consumer tastes toward specialized, organic, and healthier items. Innovations like contactless purchasing and tailored recommendations, along with the rising popularity of subscription services, are driving industry expansion throughout Europe.

Growth Drivers for the Europe Online Grocery Market

Different Delivery Models

Online grocery shopping involves more than just purchasing groceries from a website; it also includes flexible delivery options. Innovative strategies like as click-and-collect orders, which consumers place online and can pick up from a nearby store or a location of their choosing, are used in place of the conventional home delivery method. The appeal of this strategy is the delivery cost savings and convenience it provides for people who choose to pick up their food at a convenient time. Second, subscription services are well-liked, particularly for meal packages, snacks, and fresh goods. These businesses frequently send large quantities of fresh supplies or meals that have already been made once a week. Customers who want easy lives and good diets are the ones who require these services the most. The advent of lightning-fast delivery services has recently changed the industry.

Improved Supply Chain Innovations and Logistics

The development of supply chain and logistics technologies has been crucial to the expansion of the online grocery business in Europe. Grocery deliveries used to take longer, and people avoided buying perishable items online. Nonetheless, the efficiency of supermarket deliveries has significantly increased due to developments in last-mile delivery, automation, and real-time tracking. The dark stores are another important factor in delivering faster. Fulfillment facilities that exclusively handle online orders are known as "dark stores." To enable quicker order pickup and packaging, they are typically found in cities. In addition, supermarket delivery services pioneered the hyper-localized, on-demand delivery concept, promising delivery in a matter of minutes. Because of this speed, consumers now want their groceries to be delivered quickly, which gives businesses that invest in logistics optimization a competitive advantage.

Customer Demand for Sustainability and Health

The demand for local, sustainable, and organic produce has increased as European customers grow more environmentally conscious and health conscious, which has an impact on the online grocery business. Numerous studies indicate that consumers, particularly those in Northern and Western Europe, are most concerned about sustainability. In response, internet merchants are expanding their product lines to include more organic, fair-trade, and plant-based options. Additionally, since they encourage green packaging and the decrease of food waste, more shops have committed to reducing their environmental impact. Customers are also favoring businesses who are eager to source ethically and offer transparency throughout their supply chain, and they frequently demand brands that align with their beliefs when making purchases.

Challenges in the Europe Online Grocery Market

High operational costs

One major issue facing the European online grocery business is high operating costs. Transportation, inventory control, and warehousing costs can affect profitability, particularly for perishable commodities that need to be handled carefully and delivered on time. Operational costs are further increased by maintaining dependable and effective logistical networks, making technological investments, and providing competitive pricing. Large-scale fulfillment facilities and the construction of cutting-edge delivery infrastructure in both urban and rural areas are also necessary, which puts additional financial strain on companies and hinders their long-term viability and market expansion.

Intense Competition

The online grocery business in Europe is highly competitive, with several well-known companies like Tesco, Carrefour, and Lidl as well as up-and-coming startups fighting for consumers' attention. Profit margins are strained by price wars, regular promotions, and ongoing advancements in customer satisfaction and delivery speed. While larger organizations make significant investments in infrastructure and technology, smaller players struggle to differentiate their offers. This competitive environment necessitates ongoing adaptation, which raises marketing expenses and makes it difficult for companies to be profitable while drawing in and keeping clients.

Germany Online Grocery Market

In 2023, Germany's online grocery market continues to grow, driven by a high adoption of e-commerce and internet shopping. With 83% of internet users in Germany, the country ranks 6th among EU states, fueling the demand for online grocery platforms. Major players like REWE, Edeka, and Amazon Fresh dominate the market, offering a wide range of products and efficient delivery services. For instance, German Amazon Prime announced in Nov 2024 that customers may now receive food from online grocery Knuspr thanks to a partnership with the US e-commerce behemoth Amazon. The partnership will start off as "Knuspr on Amazon." Consumers increasingly prioritize convenience, with many opting for home deliveries and subscription models. The growing trend of healthy eating, along with advancements in logistics and technology, further contributes to the expansion of the German online grocery market.

United Kingdom Online Grocery Market

Convenience and shifting consumer preferences are driving the rapid growth of the UK's online grocery business. With delivery and click-and-collect options, major merchants like Tesco, Sainsbury's, Asda, and Morrisons control the market. Growth is further aided by the growing acceptance of digital payment methods, subscription-based services, and mobile apps. Retailers are being forced to change as consumers look for fresh, organic, and health-conscious items more and more. The efficiency and reach of the online grocery business are further improved by technological developments in delivery and logistics.

Italy Online Grocery Market

The increased need for convenient and time-saving shopping options is fueling the growth of the online grocery business in Italy. The adoption of online grocery shopping is being aided by the growing number of cellphones, internet users, and digital payment methods. With a wide selection of goods and quick delivery, big firms like Esselunga, Carrefour, and Amazon Fresh are profiting from this trend. For food shopping, Italians are increasingly using online platforms, especially in cities where hectic lifestyles necessitate effective solutions. The market is also benefiting from an increase in demand for locally sourced and organic products, which is driving the sector's expansion.

Europe Online Grocery Market Segments

Products - Market breakup in 6 viewpoints:

1. Vegetables and Fruits

2. Dairy Products

3. Staples and Cooking Essentials

4. Snacks

5. Meat & Seafood

6. Others

Purchaser Type - Market breakup in 2 viewpoints

1. Subscription Purchase

2. One Time Purchase

Delivery Type - Market breakup in 2 viewpoints:

1. Click & Collect

2. Home Delivery

Country: Market breakup of 12 Countries:

1. Belgium

2. France

3. UK

4. Germany

5. Spain

6. Italy

7. Netherland

8. Norway

9. Sweden

10. Switzerland

11. Russia

12. Turkey

All the companies have been studied from three points

1. Overview

2. Recent Development

3. Revenue Analysis

Company Covered

1. Tesco Plc

2. ICA Gruppen AB

3. Auchan SA

4. Colruyt Group

5. Carrefour

6. Costco Wholesale Corporation

7. Koninklijke Ahold Delhaize N.V.

8. Ocado Group plc

Key Questions Answered in Report:

1. How big is the Europe Online Grocery industry?

The Europe online grocery market size was valued at US$ 178.51 billion in 2024 and is expected to reach US$ 797.34 billion in 2033.

2. What is the Europe Online Grocery industry growth rate?

The Europe online grocery market is expected to expand at a compound annual growth rate (CAGR) of 18.09% from 2025 to 2033.

3. Who are the key players in Europe Online Grocery industry?

Tesco Plc, ICA Gruppen AB, Auchan SA, Colruyt Group, Carrefour, Costco Wholesale Corporation, Koninklijke Ahold Delhaize N.V. and Ocado Group plc are prominent in the Europe online grocery market.

4. What are the factors driving the Europe Online Grocery industry?

Europe's online grocery market growth is driven by rising consumer demand for convenience, increasing internet and smartphone penetration, efficient delivery systems, a shift toward contactless shopping, and the popularity of subscription services.

5. Which segment held the largest market share in delivery type?

Home Delivery is expected to hold the largest market share in the segment.

6. What segments are covered in the Europe Online Grocery market report?

Product, Purchaser Type and Countries segment are covered in this report.