Online Grocery Market Information by Type (Packaged, Processed Food & Beverages {Food [Bakery & Confectionery, Dairy Products, Frozen Desserts, Sweet & Savory Snacks, Breakfast Cereals, Meat, Poultry & Seafood, Fresh, Frozen, Baby Food, Plant-Based Food, and Others], Beverages [Alcoholic Beverages and Non-Alcoholic Beverages] Fruits & Vegetables {Frozen and Fresh}, Personal Care & Hygiene Products {Skin Care Products, Hair Care Products, Hand Hygiene Products, Others}. Household Cleaning Products, Baby Care Products and Others) and Regi...

Online Grocery Market Overview:

The online grocery market is projected to register a CAGR of 12.61% and reach USD 2,81,841.4 Million by 2026. Online grocery means purchasing packaged or fresh food through various online portals. Over the years, purchasing groceries has transformed a lot due to the easy product availability in online stores. This service is quite a niche market, and it is anticipated to grow rapidly in the upcoming years.

Today consumers choose online grocery shopping as it provides an array of products. Moreover, it offers the convenience of getting things delivered to the consumers' doorstep in a stipulated time. Consumers are also able to track down their spending as well. This is the reason for such greater demands of the global market. Online grocery includes a wide variety of cereals, bakeries, dairy products, fruits, and vegetables. Retailers in the market provide these services like click and collect options or subscription options for easing consumers' shopping experience, which leads to the expansion of the online grocery market size.

Hectic schedules, rising working population, and tedious commuting give opportunities to entrepreneurs and businesses to establish online grocery stores. With the evolution of technology and internet services emergence, awareness is rising among consumers about shopping trends in society. New online grocery market trends have created a high inclination towards online grocery. The rising per capita disposable income also has escalated the growth of the global market. Moreover, key market players' wider target audience and increased efforts have pushed the market potential to greater heights.

As per the online grocery market analysis, the higher popularity of online grocery services has given rise to multiple product segments. The bakery and confectionery segment will grow more and reach around USD 34,106.4 million by 2026. At the same time, the other segments will evolve at 13.16% CAGR in the forecast period. The confectionery products will also have a significant rise. The rising consumer demand will fuel the global market soon.

Covid-19 Analysis

The food and beverage industry got severely affected by the outbreak of COVID-19. During the pandemic, businesses and other sectors faced financial losses. The entire economy stooped down to lower growth rates. Industrial operations were put at a halt due to lockdown restrictions and a lack of a manual workforce. The supply chain got immensely disrupted. Due to such a scenario, the global market also witnessed an adverse impact. However, the increase in the inclination of consumers toward online grocery shopping in the lockdown helped the online grocery market revenue to have a substantial rise.

With the constant efforts of market players in bringing online grocery market trends, the overall market has been able to sustain itself even in these harsher times. Due to COVID-19, people feared going to physical stores and preferred online grocery shopping. All these are helping the online grocery industry to grow at a faster rate.

Market Dynamics:

Major Drivers of the Market

The online grocery market is primarily driven by rising technological developments like new delivery solutions and automated fulfillment centers. The facilitation of higher delivery speed and the emergence of e-Commerce or online stores boost the overall market growth. As per the UNCTAD data, the e-Commerce sector dramatically rose in 2020 from 16% to 19%. This shows the increasing dependence of consumers on online grocery shopping.

According to the online grocery market outlook, the broader target audience and higher disposable incomes have led to demand elevation. Thus, boosting the market to higher levels. The larger online market shares have resulted in lower-order sizes for free delivery, leading to a rise in market potential.

Significant Opportunities for the Market

Online grocery has become more and more convenient over the years, and various platforms provide free delivery to the doorstep. The innovative solution for third-party delivery and last-mile delivery by a few established players is igniting the online grocery market share. To remain in the competition, various market players are providing flexible delivery solutions, and the emergence of automated distribution centers will propel the market growth more.

The arrival of new entrants in this industry helps in bringing new techniques and methods to attract customers. For example, Walmart Inc., in April 2020, collaborated with Nextdoor Company to launch a program named Neighbors Helping Neighbors to make it easier for all neighbors across the nation during the COVID-19 pandemic. This shows that technological advancements will boost the online grocery market during the forecast period.

Market Restraints

There are multiple opportunities to boost the online grocery market, but certain limitations can hamper the market potential. The underutilized online capabilities of the market players can put a lag in the growing online grocery sales and delivery trends. Due to the pandemic, the entire industry got affected, and so was the market share. This acted as a big restraint for the market.

Market Growth Challenges

Although the online grocery market possesses many factors that propel it towards growth, some challenges can restrict its overall potential. The concerns about the freshness of grocery items can hinder the expansion of market revenue. In addition, the high delivery charges by some stores can become a threat to market growth.

Cumulative Growth Analysis

According to the online grocery market analysis, the revenue and value of the market will attain their maximum potential. The market size will grow at 12.61% during the assessment period and will exceed all its previous growth. The market will propel to optimum levels in the upcoming years due to the rising demand for online grocery shopping.

Segment Overview:

The online grocery market is fragmented into multiple segments based on type and region.

By Type

 In the market type segment, fruits and vegetables, packaged or processed food and beverages, personal care and hygiene, baby care product, household cleaning products, and many other things are included. The packaged and processed food segment is further bifurcated into baby food, beverages, and other segments. The food section consists of bakery and confectionery, frozen desserts, dairy products, breakfast cereals, sweet and savory snacks, fresh and frozen meat, poultry, and seafood. Out of all this, the bakery and confectionery section is expected to have higher growth.

The baby food online grocery market segment consists of plant-based food, tofu and its products, plant-based bakery and confectionery, plant-based sausages, seitan, tempeh, etc. The beverages section includes non-alcoholic and alcoholic beverages. In the fruits and vegetable section, there is a fresh and frozen section. The personal care and Hygiene products section comprises skincare products, hand hygiene products, hair care products, and others.

By Region

This online grocery market contains various geographies that can influence the market growth during the forecast period. It includes regions like North America, Asia-Pacific, Europe, and the remaining parts of the world.

Regional Analysis

The online grocery market is analyzed in various regions such as North America, Asia-Pacific, Europe, and other parts of the world. North America and Europe will have a significant rise in the forecast period. However, the Asia-Pacific region is anticipated to have a dominant market share during the assessment years. This area accounted for a 39.58% share rise in 2019, and the projected CAGR is 14.01%. China will be the major contributor to market growth.

Due to the large population's willingness to avail of online grocery services, the market there will witness a higher rise in growth. Increasing mobile accessibility and internet penetration will also boost the market potential.

Recent Developments

• In 2020, big companies like Zomato, Swiggy, Rapido, Uber, and many more collaborated with offline retail stores such as Big Bazaar, Nature's Basket, and Spencer’s Retail to venture into grocery items delivery.


• In 2021, Big Basket, an online grocery store, announced to release of express online grocery delivery.

Competitive Landscape

The prominent players of the online grocery 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)


• Fresh Direct, LLC. (US)

Report Overview

The online grocery market forecast report portrays the projected value and growth of the market in the forecast years. It includes the Covid-19 effect on the online grocery industry and elaborates on the market dynamics, including drivers and restraints of the market. The report describes various market segments and regional analyses. It also sheds light on the competitive landscape of the market and recent developments in this field.