Online Grocery Market Research Report: By Product Type (Fruits and Vegetables, Dairy Products, Meat and Poultry, Beverages, Packaged Food), By Delivery Model (Home Delivery, Click and Collect, Subscription Services), By Customer Type (Individual Consumers, Corporate Clients, Restaurants, Hotels), By Payment Method (Credit Card, Digital Wallets, Cash on Delivery, Bank Transfer) andBy Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035.

Online Grocery Market Summary

As per MRFR Analysis, the Online Grocery Market was valued at 240.6 USD Billion in 2023 and is projected to grow to 900 USD Billion by 2035, with a CAGR of 11.62% from 2025 to 2035. The market is driven by rising internet penetration, changing consumer preferences for convenience, and increased demand for fresh and organic products. The COVID-19 pandemic has accelerated the shift towards online shopping, with consumers increasingly favoring home delivery and subscription services.

Key Market Trends & Highlights

The Online Grocery Market is evolving rapidly, influenced by technology and changing consumer behaviors.

• Market Size in 2024: 268.56 USD Billion; projected to reach 900 USD Billion by 2035.
• Fruits and Vegetables segment valued at 80.0 USD Billion in 2024; expected to grow to 280.0 USD Billion by 2035.
• North America to dominate with a market value of 85.0 USD Billion in 2024; projected to reach 300.0 USD Billion by 2035.
• Digital Wallets gaining traction as a preferred payment method, especially among younger consumers.

Market Size & Forecast

2023 Market Size: USD 240.6 Billion

2024 Market Size: USD 268.56 Billion

2035 Market Size: USD 900 Billion

CAGR (2025-2035): 11.62%

Largest Regional Market Share in 2024: North America.

Major Players

Key players include Amazon, Costco, Walmart, Kroger, Sainsbury's, and Instacart.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Key Online Grocery Market Trends Highlighted

The Global Online Grocery Market is experiencing a significant shift fueled by changing consumer preferences and advancements in technology. There is a growing trend towards convenience, with more consumers opting for online grocery shopping due to busy lifestyles and an increasing demand for home delivery services. This trend is particularly evident in urban areas where accessibility to physical stores can be limited or time-consuming. Moreover, the pandemic has accelerated the adoption of online grocery shopping, leading to a more permanent integration of digital channels in consumer behavior. Key market drivers include the increasing penetration of smartphones and internet connectivity, which have made online platforms more accessible.
Retailers are improving their online services and coming up with new ways to manage their logistics and supply chains so that deliveries happen on time. People are also looking for fresh and organic products online because of the focus on health and wellness. This gives online grocery stores new ways to meet these needs. There are a lot of chances in the market right now, especially when it comes to expanding into areas that aren't well served and customizing services to meet local needs. There is a clear shift toward sustainability. People are becoming more aware of the environment and prefer grocery stores that use eco-friendly methods, like less packaging and sourcing products in a way that doesn't harm the environment.

Additionally, the integration of AI and data analytics in personalizing shopping experiences offers significant potential for companies looking to improve customer satisfaction and loyalty. Trends in recent times reveal a surge in the popularity of subscription models, which provide customers with convenience and predictability in their grocery shopping. Overall, the Global Online Grocery Market is evolving rapidly, emphasizing the importance of innovation and adaptability for growth in this sector.

Online Grocery Market Drivers

Rising Internet Penetration and Smartphone Usage

The Global Online Grocery Market is experiencing significant growth, primarily driven by the increasing penetration of the internet and the widespread use of smartphones. As per the International Telecommunication Union, global internet usage has surged to approximately 63% of the world's population in 2021, which has led to more individuals being able to access online grocery services. With major companies such as Walmart and Amazon investing heavily in their digital platforms, the ease of online shopping for groceries has become the norm.
This increase in digital accessibility is encouraging consumers, particularly in regions such as North America and Europe, to shift from traditional shopping to online grocery shopping, contributing to the substantial growth in the market. Furthermore, as reported by the World Bank, mobile cellular subscriptions globally reached around 8 billion, which opens up new avenues for grocery delivery apps to reach a wider audience. The combination of improved digital access and evolving consumer preferences towards online shopping creates a fertile ground for the Global Online Grocery Market to thrive.

Changing Consumer Lifestyle and Preferences

The fast-paced lifestyle of consumers globally is another significant driver for the Global Online Grocery Market. According to a survey conducted by the Global Web Index, around 30% of consumers worldwide stated that they prefer shopping online due to convenience and time savings. With the demand for quick and easy access to groceries on the rise, brands are adapting their strategies to accommodate these preferences. Established companies like Tesco and Peapod are enhancing their online grocery services to cater to this increasing demand.
As more consumers prioritize convenience in their shopping habits, the Global Online Grocery Market is likely to see continued growth. This changing consumer behavior signifies a paradigm shift towards digital shopping avenues, making it essential for grocery businesses to integrate e-commerce capabilities.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic has had a profound impact on the Global Online Grocery Market, acting as a catalyst for significant growth. During the pandemic, many individuals turned to online grocery shopping as a safer alternative to in-person shopping, resulting in a considerable increase in demand. According to a report from the Food Marketing Institute, e-commerce grocery sales saw a 40% increase in 2020 compared to the previous year. Major grocery retailers like Instacart and Amazon Fresh experienced dramatic growth in new customers and sales volume.
This shift in consumer behavior is likely to persist even post-pandemic, as many consumers have grown accustomed to the convenience of online grocery shopping. The lasting effects of the pandemic indicate a sustainable growth trajectory for the Global Online Grocery Market as consumers continue to prioritize safety and convenience in their shopping choices.

Technological Advancements in Delivery Systems

Technological advancements in logistics and delivery systems are fueling the growth of the Global Online Grocery Market. Innovations such as drone delivery, automated warehouses, and tracking systems are enhancing the efficiency of online grocery services. Companies like Walmart and Amazon are leading the way by implementing advanced technologies for logistics management and last-mile delivery. A report by the World Economic Forum suggests that the global drone logistics market is expected to grow substantially, which could further revolutionize grocery deliveries.
The integration of these innovative technologies helps reduce operational costs and improve delivery times, making online grocery shopping more appealing to consumers. As technology continues to evolve, it is expected to significantly boost the competitiveness and efficiency of grocery delivery services in the Global Online Grocery Market.

Online Grocery Market Segment Insights

Online Grocery Market Product Type Insights

The Global Online Grocery Market is experiencing significant growth, with the overall market expected to achieve a valuation of 268.56 USD Billion in 2024 and projected to reach 900.0 USD Billion by 2035. This growth trajectory is fueled by evolving consumer behaviors that favor the convenience of online shopping, particularly for essential groceries. The market segmentation under the Product Type category includes various categories such as Fruits and Vegetables, Dairy Products, Meat and Poultry, Beverages, and Packaged Food, each contributing uniquely to the overall market dynamics.
Among these segments, the Fruits and Vegetables category holds a major market presence, valued at 90.0 USD billion in 2024 and anticipated to grow to 300.0 USD billion by 2035. This segment's prominence can be attributed to the increasing demand for fresh produce, driven by health-conscious consumers prioritizing nutritional diets and fresh ingredients in their meal preparations. The Dairy Products segment, currently valued at 60.0 USD Billion in 2024 and projected to expand to 200.0 USD Billion by 2035, also showcases significant potential as it caters to a vast consumer base seeking convenience in purchasing everyday dairy items such as milk, cheese, and yogurt online.
Additionally, the Meat and Poultry category, valued at 48.0 USD Billion in 2024 and expected to reach 170.0 USD Billion by 2035, is crucial as it reflects the growing inclination towards quality protein sources and the convenience of ordering fresh meats through online platforms. Meanwhile, Beverages, valued at 35.0 USD Billion in 2024 and anticipated to grow to 120.0 USD Billion by 2035, leverage the explosive growth of online services to provide customers with easy access to a variety of drinks, ranging from soft drinks to health juices. Packaged Food, with a valuation of 35.56 USD Billion in 2024 and a projected value of 110.0 USD Billion by 2035, underscores the growing trend of convenience foods that are ready-to-eat or require minimal preparation, reflecting consumers’ changing lifestyles that favor quick meal solutions.
The insights from the Global Online Grocery Market data reveal how these product types are not only catering to consumer needs but are also responsive to market trends emphasizing health, convenience, and quality. Analyzing Global Online Grocery Market Statistics indicates robust growth across all segments, with Fruits and Vegetables leading the charge thanks to their fundamental role in dietary health, which resonates well with an increasingly health-focused global population. The Dairy Products segment follows closely, driven by evolving tastes and an integral role in many family diets.
The other categories also play pivotal roles in offering a comprehensive grocery shopping experience that appeals to diverse consumer preferences, indicating well-rounded market growth opportunities within the Global Online Grocery Market.

Online Grocery Market Delivery Model Insights

The Global Online Grocery Market is experiencing notable transformation within the Delivery Model segment, projecting a market value of 268.56 USD Billion by 2024 and anticipated growth to 900.0 USD Billion by 2035. This segment encompasses various approaches, including Home Delivery, Click and Collect, and Subscription Services, each playing a crucial role in market dynamics. Home Delivery has become a popular choice for consumers who appreciate convenience, catering to busy lifestyles and enhancing customer satisfaction. Click and Collect options are gaining traction, allowing customers to shop online and conveniently pick up their groceries from physical locations, thus bridging the gap between online convenience and in-store experience.
Subscription Services, offering regularly scheduled deliveries, continue to attract customers seeking consistency and hassle-free shopping experiences. With an expected compound annual growth rate of 11.62 from 2025 to 2035, the Global Online Grocery Market data highlights that these delivery models are pivotal in driving the market growth. Trends such as increased smartphone usage, expanding internet accessibility, and evolving consumer preferences contribute significantly to the momentum of the Global Online Grocery Market, presenting ample opportunities while navigating challenges like logistics management and competition.

Online Grocery Market Customer Type Insights

The Global Online Grocery Market has seen substantial growth, with its valuation expected to reach 268.56 USD Billion in 2024. This market is characterized by its diverse customer types, primarily consisting of Individual Consumers, Corporate Clients, Restaurants, and Hotels. Individual Consumers form a significant part of this landscape as they increasingly turn to online platforms for their grocery needs, contributing heavily to the market's expansion. Corporate Clients, often leveraging online grocery services for office stocking, are also influential in driving demand, highlighting the growing trend of convenience in B2B services.
Restaurants are evolving to incorporate online grocery shopping within their supply chains, securing necessary ingredients with ease, while Hotels utilize these services to maintain high standards for guest dining experiences. Overall, the Global Online Grocery Market segmentation showcases diverse customer needs, with each type playing a vital role in shaping market trends, supported by the increasing adoption of technology and consumer preferences for convenience and variety. This market is poised for continuous growth, with a clear trajectory pointing towards a more interconnected and efficient grocery procurement landscape.

Online Grocery Market Payment Method Insights

The Global Online Grocery Market is increasingly shaped by various payment methods, reflecting evolving consumer preferences and technological advancements. As of 2024, the market is expected to be valued at 268.56 USD Billion, signifying substantial growth potential. Payment methods like Credit Card and Digital Wallets are becoming increasingly popular due to their convenience and the rise of e-commerce platforms. Digital Wallets, in particular, are gaining traction as they streamline payment processes and enhance user experience, appealing to a tech-savvy consumer base.
Meanwhile, Cash on Delivery remains significant in regions where consumers prefer tangible transactions, maintaining trust, especially in emerging markets. Bank Transfer is also utilized but tends to be less favored due to slower processing times compared to instant electronic options. As the Global Online Grocery Market continues to expand, driven by increased smartphone usage and internet penetration, these payment methods are pivotal in shaping consumer behavior and market dynamics, reflecting the broader trend of digital payment integration in retail practices.
Overall, the segmentation of payment methods will play a crucial role in determining the trends and performance of the Global Online Grocery Market.

Online Grocery Market Regional Insights

The Global Online Grocery Market exhibits substantial regional variations, with notable valuations projected for 2024 and beyond. In 2024, North America stands out with a valuation of 100.56 USD billion, capturing a significant share due to its advanced logistics and technology infrastructure, which enhances the grocery shopping experience. Europe follows closely, with a valuation of 85.0 USD Billion, benefiting from a growing trend of health-conscious consumers shifting towards online channels. Asia Pacific is also emerging as a key player, with a market value of 50.0 USD billion in 2024, reflecting rapid urbanization and increased smartphone penetration.
Meanwhile, South America, valued at 21.0 USD Billion, is witnessing growth driven by an expanding middle class and increased internet access. The Middle East and Africa, with a smaller valuation of 12.0 USD billion, are gradually adapting to online grocery shopping, leveraging local market traits and evolving consumer behavior. Each region plays a vital role in the Global Online Grocery Market segmentation, highlighting diverse consumer needs and preferences that continue to shape the market landscape. This regional diversity presents both opportunities and challenges, emphasizing the importance of tailored strategies in capturing market growth across distinct geographies.

Online Grocery Market Key Players and Competitive Insights:

The Global Online Grocery Market has experienced substantial growth driven by several factors, including shifts in consumer behavior, advancements in technology, and an increasing demand for convenience. As urbanization rises and lifestyles become busier, consumers are increasingly inclined to purchase groceries online. This shift has prompted traditional grocery retailers and new entrants to adapt their strategies to capture the lucrative opportunities presented by the digital marketplace. Competition within this sector is intense, with various players striving to enhance their service offerings, improve customer experiences, and optimize supply chains to meet rising consumer expectations. The competitive landscape is characterized by innovations in logistics, the introduction of new business models, and strategic partnerships, leading to a vibrant and dynamic marketplace.
Ocado Group stands out in the Global Online Grocery Market due to its unique technology-driven approach and robust infrastructure that supports its operations. The company has leveraged its proprietary software and automation technologies to streamline online grocery fulfillment, ensuring efficiency and reliability in its deliveries. Ocado's commitment to innovation sets it apart from traditional players, as it focuses on enhancing the online shopping experience through user-friendly interfaces and personalized services. Its extensive product range, from everyday staples to specialty items, caters to a diverse customer base. Furthermore, Ocado has established partnerships with various retailers, which amplify its reach in the global market, allowing it to maintain a competitive edge through distinctive capabilities in supply chain management and customer engagement strategies.
Groupe Casino has made significant strides in the Global Online Grocery Market by employing a multi-channel strategy that combines both online and offline presence to meet consumer demands effectively. The company offers a wide range of products and services, including groceries, fresh produce, and ready-to-eat meals, appealing to a broad demographic. Its strategic emphasis on e-commerce growth has enabled it to strengthen its market presence on a global scale. Groupe Casino’s strengths lie in its established brand reputation and extensive network of stores that support its online platform, enhancing customer trust and loyalty. The company has engaged in several mergers and acquisitions to bolster its capabilities in the online grocery space, integrating technology with its supply chain to achieve better efficiency and service delivery. These initiatives have positioned Groupe Casino favorably in the competitive landscape, allowing it to adapt quickly to evolving consumer preferences and market trends.

Key Companies in the Online Grocery Market Include:

• Ocado Group


• Groupe Casino


• Walmart


• Kroger


• Delivery Hero


• Metro AG


• Tesco


• Carrefour


• Instacart


• Alibaba Group


• Target


• Ahold Delhaize


• Whole Foods Market


• Amazon

Online Grocery Market Industry Developments

Recent changes and developments in the Global Online Grocery Market have been mostly caused by new technologies and changing consumer habits. In September 2023, Walmart made its online grocery services better by adding more delivery and pickup options. The company wants to grow its market share in the U.S. and around the world. In August 2023, Delivery Hero strengthened its presence in Europe by putting more money into partnerships with regional grocery stores and digital platforms. This made its position in the quick commerce space even stronger. In July 2023, Ahold Delhaize also announced a large investment in automation technologies for its online grocery fulfillment centers. This is part of a larger trend in the industry toward better customer service and more efficient operations. In the middle of 2022, Carrefour partnered with regional digital platforms to improve its e-commerce capabilities. This was part of its ongoing effort to modernize its online grocery infrastructure. Amazon and Ocado Group, two big companies, are still seeing strong year-on-year growth in their online grocery segments. This is because more and more people want fast, easy, and contactless service. The pandemic sped up the use of digital technology, and online grocery shopping has kept going strong since then, becoming a key part of modern retail. Recent financial reports back up the trend of rising market values, which is being driven by top companies quickly adjusting to changing consumer needs.

Online Grocery Market Segmentation Insights

Online Grocery Market Product Type Outlook

• Fruits and Vegetables


• Dairy Products


• Meat and Poultry


• Beverages


• Packaged Food

Online Grocery Market Delivery Model Outlook

• Home Delivery


• Click and Collect


• Subscription Services

Online Grocery Market Customer Type Outlook

• Individual Consumers


• Corporate Clients


• Restaurants


• Hotels

Online Grocery Market Payment Method Outlook

• Credit Card


• Digital Wallets


• Cash on Delivery


• Bank Transfer

Online Grocery Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric Source	Details
MARKET SIZE 2023	240.6(USD Billion)
MARKET SIZE 2024	268.56(USD Billion)
MARKET SIZE 2035	900.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	11.62% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Amazon, Costco, Meijer, Sainsbury's, Kroger, Walmart, Behind the Corner, Carrefour, Tesco, Target, Netto, Alibaba, Ocado, Instacart, Ahold Delhaize
SEGMENTS COVERED	Product Type, Delivery Model, Customer Type, Payment Method, Regional
KEY MARKET OPPORTUNITIES	Increased demand for convenience, Expansion into rural areas, Personalized shopping experiences, Integration of AI technology, Sustainable packaging solutions
KEY MARKET DYNAMICS	increasing smartphone penetration, demand for convenience, rise of health-conscious consumers, improvements in logistics technology, expansion of delivery services
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA