ID: MRFR/CR/8148-CR | May 2020 | Region: Global | 111 pages
Global Online Grocery Market is projected to register a CAGR of 12.61% and reach USD 2,81,841.4 Million by 2026. Online grocery refers to the services offered by retail stores through online channels. The global online grocery market is expected to register a notable growth rate during the forecast period. The primary drivers of the growth of the global online grocery market are the increased technological developments, a surge in promotional activities employed by major players, a broader target audience, and increasing per capita disposable incomes. However, the underdeveloped capabilities of online grocery players and product recalls are set to curb the growth of the online grocery industry globally.
Global Online Grocery Market is expected to register significant growth during the forecast period. Several technological developments, such as the rise of automated fulfillment centers and new delivery solutions, facilitate the delivery speed and further help position online stores as quick and convenient solutions. The increasing competition for larger online market shares is expected to result in reduced lowered order sizes for free delivery and innovative solutions for the last-mile network, which is further expected to reduce costs and increase accessibility. A lot of new entrants are setting up their space in this industry by using advanced methods and techniques to lure customers. For instance, in April 2020, Walmart Inc., in collaboration with Nextdoor, Inc., launched the “Neighbors Helping Neighbors” program to make it easier for neighbors across the country to help one another during the COVID-19 pandemic. With this program, the Nextdoor members can request assistance or offer to help someone with shopping for their essential items at Walmart. Thus, the increasing technological advancements are expected to drive the growth of the global online grocery market during the forecast period. However, underutilized online capabilities are restricting the growth of the global market. In the online delivery model, various players are pushing for faster and more flexible delivery solutions. To stay competitive in this developing environment, grocery retailers need further to optimize their fulfillment processes, including automated distribution centers. Additionally, innovative solutions for last-mile delivery and third-party delivery are offered by few established players. Owing to the underutilized online capabilities, several players lag in this growing trend of online grocery sales and delivery. Thus, the underutilized online capabilities of the market players are expected to restrict the growth of the global online grocery market during the forecast period.
Global Online Grocery Market Revenue, by Packaged, Processed Food Type, 2026 (Million USD)
Sources: MRFR Analysis
Based on packaged, processed food type, the global online grocery market has been divided into bakery & confectionery, dairy products, frozen desserts, sweet & savory snacks, breakfast cereals, meat, poultry & seafood, baby food, plant-based food, and others. The bakery & confectionery segment is expected to dominate the global market and reach USD 34,106.4 million by the end of 2026. The others segment is projected to grow at the fastest CAGR of 13.16% during 2020-2026. The others segment primarily covers soups, instant noodles, and pasta. Bakery products include pastries, cakes, cookies, and doughnuts, whereas confectionery products include candies, gums, and jellies. Additionally, confectionery products include therapeutic and dietetic confectioneries that differ in formulations from traditional confections. The increasing consumer demand for baked products is expected to drive the growth of this segment during the forecast period.
Global Online Grocery Market Share, by Region, 2019 (%)
Sources: MRFR Analysis
Asia-Pacific is expected to constitute a dominant share of the online grocery market during the forecast period. The region accounted for a 39.58% share of the market in 2019. China is among the major contributors to the growth of the Asia-Pacific market. The market in the region is projected to register a significant CAGR of 14.01% during the forecast period of 2020 to 2026. The dominance of the market in Asia-Pacific can be attributed to the presence of a large population willing to avail of online grocery shopping services. The large young millennial population in the region further adds to the region’s growth potential. Additionally, rising mobile accessibility and broadband penetration are disrupting the traditional grocery business model in the region. These factors are expected to drive the growth of the global online grocery market in Asia-Pacific during the forecast period. Furthermore, the Europe market holds a prominent share of the global online grocery market as people are looking to make use of more convenient ways of grocery shopping to save time and money.
Prominent Players in the Global Online Grocery Market include Amazon.com, Inc. (US), Walmart Inc. (US), The Kroger Co. (US), Albertsons Companies, Inc. (US), Fresh Direct, LLC. (US), ALDI (Germany), ASDA (UK), Auchan SA (France), Royal Ahold Delhaize NV (Netherlands), and TESCO PLC (UK).
Players operating in the global online grocery market are focusing on strengthening their geographic footprint by expansions and launching innovative products.
Global Online Grocery Market, by Type
Global Online Grocery Market, by Region