Online Grocery Market Size was valued at USD 12.95 Billion in 2023. The Online Grocery market industry is projected to grow from USD 14.582995 Billion in 2024 to USD 33.49 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.95% during the forecast period (2024 - 2032). A rising preference for online shopping portals and the rising popularity of contactless payment systems are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for online grocery is driven by growth as more people realize the importance of online grocery. New, more convenient delivery options, scheduled or expedited delivery, and on-demand or subscription delivery, entices more customers to shop online food. Many factors contribute to this sector's expansion, including the attractive discounts provided by service portals and the increasing levels of disposable income. Moreover, the convenience and ease of using online platforms have increased thanks to the proliferation of smart devices, the ease of making virtual payments, and the widespread use of internet services, all of which have contributed to the growth of the online grocery sector. Consumers' increasing conscientiousness about the environmental impact of their purchases is fueling a rise in eco-friendly packaging and environmentally responsible shipping practices.
Additionally, increased efforts to expand e-commerce enterprises and use interesting advertising strategies have fueled the industry's expansion. In response to rising competition levels and a glut of unregulated stores, many online merchants have begun providing free shipping and steep discounts. Rising demand for quick and easy food delivery has contributed to the growth of the online grocery industry.
For instance, tesco exchange is a new online marketplace that connects Tesco suppliers with surplus inventory (such as crops, by-products, ingredients, or packaging) with other Tesco suppliers with a demand for that inventory. Customers are also anticipated to profit from the decreased production costs. As a result, it is anticipated that demand for online grocery will increase throughout the projection period due to rising internet awareness. Thus, the driving factor of the online grocery market revenue.
The global online grocery market segmentation, based on product type, includes fresh produce, breakfast & dairy, snacks & beverages, staples & cooking essentials, and others. The staples & cooking essentials category is expected to develop at a CAGR of 12.61% over the projected period, making up the largest market share due to their daily necessities and the convenience of home delivery. Online shopping for basics and kitchen essentials has surpassed in-store shopping. Products supplied online are of such excellent quality that consumers are more likely to make repeat purchases from the same store. That's because the company provides such high-quality goods.
Figure 1: Global Online Grocery Market by Product Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American online grocery market will dominate because rising populations, higher levels of disposable money, and more affluent and discerning eaters contribute to the industry's expansion in the Region. In addition, customers can now shop for groceries wherever they like, thanks to the proliferation of mobile devices and the widespread availability of high-speed Internet.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: GLOBAL ONLINE GROCERY MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s online grocery market is the second-largest because more people are shopping at online grocery stores because of the ease of use and the wide variety of fresh foods available. Businesses are developing differentiated business models to boost customer satisfaction and sustain market share in this region. Further, the German online grocery market held the largest market share, and the UK online grocery market was the fastest-growing market in the European region.
The Asia-Pacific online grocery Market is expected to grow at the fastest CAGR from 2023 to 2032. The regional market expansion is anticipated because government initiatives in countries like India and China to foster e-commerce and digitization have contributed to the expansion of the regional market. Moreover, China’s online grocery market held the largest market share, and the Indian online grocery market was the fastest-growing market in the Asia-Pacific.
For instance, Albertsons Companies, Inc. announced that it had partnered with FIS, the world's leading provider of technology and services to the financial services industry. FIS exclusively represents supplemental health benefits administrators Fresh Connect, PayForward, and WEXTM. Soda Health is a nonprofit that aims to increase health equity by providing individuals with benefits tailored to their unique circumstances. Albertsons Cos. Is partnering with them to accept their benefit cards.
Leading market players are investing heavily in research and development to expand their product lines, which will help the online grocery market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the online grocery industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the global online grocery industry to benefit clients and increase the market sector. In recent years, the online grocery industry has offered some of the most significant technological development. Major players in the online grocery market including are TESCO PLC (UK), Amazon.com Inc. (US), Royal Ahold Delhaize NV (Netherlands), Walmart Inc. (US), Auchan SA (France), The Kroger Co. (US), ASDA (UK), Albertsons Companies, Inc. (US), ALDI (Germany), Fresh Direct, LLC. (US), and others are attempting to increase market demand by investing in research and development operations.
Tesco plc, largest retailer in the UK and it’s headquarter, in Britain. As the world’s largest retailer, staffed by more than 345,000 people, our mission is to provide our customers with the affordable, healthy, and sustainably sourced food they need to improve their standard of living. In April 2023, Tesco plc is the largest retailer in the UK, and its headquarters is in Britain. As the world's largest retailer, staffed by more than 345,000 people, our mission is to provide our customers with the affordable, healthy, and sustainably sourced food they need to improve their standard of living. In April 2023, Tesco started reusing plastic food trays, making a closed-loop packaging system for its staple chilled ready-to-eat meals. Customer-returned PET trays, collected through European kerbside garbage, will now be recycled and processed back into food-grade plastic trays through a partnership with top packaging company Faerch. Up to 75% of the plastic in Tesco's ready meal trays is recycled material, mostly from bottle flake plastic, which is cleaner and easier to recycle. The new core chilled ready meals trays will have at least 30% recycled tray content thanks to the new Tray 2 Tray by FaerchTM project.
Ahold and Delhaize Group, pioneers in the retail industry for nearly 150 years, merged in July 2016, creating what is now known as Ahold Delhaize. About 414,000 people are employed by our local brands across 7,659 local supermarkets, convenience stores, and specialty shops. Brands owned by Ahold Delhaize are committed to improving consumers' quality of life by providing them with convenient and healthy food options. In addition to our retail locations, we own the most popular internet store in the Benelux and the most popular online supermarket in both the Benelux and the United States. Our local brands are among the most prominent producers when it comes to fresh food and regionally designed own-brand items, such as a wide variety of reasonably priced natural and organic goods. We pioneered eco-friendly grocery stores and e-commerce and remain an industry leader. Our brands are united by a commitment to providing exceptional customer service, offering competitive wages and benefits, and encouraging employees to pursue personal and professional growth. In April 2023, Hannaford Supermarkets, a regional chain owned by Ahold Delhaize, introduced a new program during Earth Month to increase its focus on sustainability in the Northeastern United States. Planet Hannaford, the company's new brand identity, consolidates all of the company's environmental initiatives under a single, front-of-house label to better educate and equip shoppers to make sustainable purchasing decisions.
Online Grocery Industry Developments
March 2023: Tesco has announced a £5 million grant initiative to provide schools with more money for nutritious snacks and physical education. To help thousands of schoolchildren across the UK get a healthier, more active, and stronger start in life, a new grant program is debuting this summer with funding of £5 million.
April 2023: The Kroger Company recently announced a key milestone in its cutting-edge recycling program: one million pieces of Our Brands flexible plastic product packaging had been recycled. The firm announced the launch of two new Simple Truth® products featuring repurposed components to further sustainability.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 12.95 billion |
| Market Size 2024 | USD 14.582995 billion |
| Market Size 2032 | USD 33.49 billion |
| Compound Annual Growth Rate (CAGR) | 10.95% (2024-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | TESCO PLC (UK), Amazon.com Inc. (US), Royal Ahold Delhaize NV (Netherlands), Walmart Inc. (US), Auchan SA (France), The Kroger Co. (US), ASDA (UK), Albertsons Companies, Inc. (US), ALDI (Germany), and Fresh Direct, LLC. (US) |
| Key Market Opportunities | More efforts to develop the online market |
| Key Market Dynamics | Free shipping and deep discounts are becoming more commonplace among internet retailers, Increased product quality and convenient doorstep delivery |
Online Grocery Market Highlights:
Frequently Asked Questions (FAQ) :
The global online grocery market size was valued at USD 11.5 Billion in 2022.
The global market is projected to grow at a CAGR of 10.95% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are TESCO PLC (UK), Amazon.com Inc. (US), Royal Ahold Delhaize NV (Netherlands), Walmart Inc. (US), Auchan SA (France), The Kroger Co. (US), ASDA (UK), Albertsons Companies, Inc. (US), ALDI (Germany), and Fresh Direct, LLC. (US).
The staple cooking & essentials category dominated the online grocery market in 2022.
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