Global Online Grocery Market Size, Share, Growth Analysis, By Product type(Fresh Produce, Breakfast & Dairy), By Purchaser Type(One Time Purchase and Subscription Purchase) - Industry Forecast 2024-2031

Global online grocery market was valued at USD 0.35 trillion in 2022 and is anticipated to rise from USD 0.44 trillion in 2023 to reach a value of USD 2.66 trillion by 2031, at a CAGR of more than 25.30% during the forecast period (2024-2031).

Over the forecast period, the growth of the online grocery market is expected to be fueled by two main factors. Firstly, the changing consumer purchasing patterns resulting from the onset of the pandemic, coupled with the continuous expansion of the e-commerce sector, serve as primary drivers of growth. Secondly, the availability of various payment options and assurances for contactless delivery of groceries purchased online contribute to the market's expansion. To significantly expand during the forecast period, the market will need to continue offering multiple specialized delivery options such as click & collect and same-day delivery. The surge in demand for online food shopping is largely propelled by the pandemic outbreak. Consequently, click & collect services are encouraging consumers to opt for online grocery shopping, allowing them to conveniently book groceries online and pick them up at their preferred time slots while avoiding crowds. Retailers are rapidly developing click & collect options to provide a seamless consumer experience across their network of grocery stores. Compared to traditional channels, the online platform offers consumers a wider range of choices, allowing them to compare products and make informed purchases. Grocers have greater opportunities to promote their brands and prioritize quality through e-commerce platforms. Additionally, features like saved preferences and order histories for easy reordering enhance consumer convenience and contribute to the market's expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the global online grocery market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Online Grocery Market Segmental Analysis

The global online grocery market is segmented based on the product type, purchaser type, and region. By product type, the market is segmented into fresh produce, breakfast & dairy, snacks & beverages, meat & seafood, staples & cooking essentials. By purchaser type, the market is segmented into one time purchase and subscription purchase, By region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and MEA.

Drivers of the Global Online Grocery Market

As disposable income increases globally, the online grocery market is experiencing significant growth. In today's fast-paced world, consumers prioritize convenience and time-saving solutions. Shopping online for groceries has become a convenient and practical option for many individuals, allowing them to save time and effort. Moreover, consumers are more willing to invest in goods and services that offer ease of access and convenience. Consequently, the demand for online grocery shopping has surged, with many people opting for this hassle-free alternative. Additionally, consumers are more willing to spend money on online groceries, further driving the expansion of the market.

Restraints in the Global Online Grocery Market

The online grocery market faces challenges related to the cost of storage and delivery, which can impact consumer demand. High delivery costs, often influenced by changing storage expenses, pose a significant barrier to online grocery shopping. Factors such as transportation and fuel costs further contribute to the overall delivery expenses. Additionally, taxes, rent for storage units, maintenance costs, and electricity expenses can directly affect product costs and delivery fees. These factors collectively pose challenges to market growth and may discourage customers from opting for online grocery purchases.

Market Trends of the Global Online Grocery Market

The e-commerce industry is undergoing rapid evolution, with a growing trend towards leveraging automation to efficiently meet customer demand. In the online grocery market, merchants are increasingly adopting automated solutions to stay competitive amidst high consumer demand. Automation enables streamlined processes, from inventory management to order fulfillment, allowing merchants to provide a seamless shopping experience for customers. By embracing automation, online grocery retailers can level the playing field and economically meet the growing demands of their clientele.