Online Grocery Market Size, Share & Trends Analysis Report By Product Type (Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Staples & Cooking Essentials), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global online grocery market size was valued at USD 285.70 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 25.3% from 2022 to 2030. The changing shopping preferences of consumers in the wake of the outbreak of the pandemic and the unabated growth of the e-commerce industry are expected to drive the growth of the market over the forecast period. The myriad of options for online payments and the assurances for contactless delivery of the ordered grocery being offered by online grocers is expected to contribute to the growth of the market.

Advances in technology, the continued urbanization, and the paradigm shift in consumers’ shopping habits are driving the preference for grocery shopping through online channels. Innovative business models, such as slotted or express delivery and on-demand or subscription delivery models, being introduced by grocers are also encouraging consumers to opt for online grocery shopping. Attractive discounts being offered by service portals and the rising levels of disposable income are also playing a vital role in driving the growth of the market.

Various delivery options, such as immediate or same-day delivery and click & collect, remain niche for the growth of the market. For instance, in the U.S., grocers are offering contactless grocery delivery and fast-tracking the delivery to next-day delivery or same-day delivery. This is encouraging small-scale grocers to join forces with third-party service providers, such as Instacart, and make a foray into the market. Food-delivery platforms, such as Uber Eats and DoorDash, are also making a market foray finding the market highly lucrative.

The outbreak of the pandemic is particularly driving the preference for online grocery shopping. As such, easy availability of time slots, lower service fees, and the convenience associated with picking up the grocery while on the way are encouraging individuals to opt for click & collect services, book the grocery online, and pick up the grocery they ordered at their convenience while avoiding crowds. As a result, grocers are rapidly building click & collect capabilities as part of their efforts to ensure a convenient and robust customer experience throughout their network of groceries.

The online channel is offering more options for consumers as compared to the conventional channels. As such, e-commerce portals are allowing consumers to compare various products with each other and make an informed buying decision. This is also opening opportunities for grocers to build brand awareness while focusing on quality. Features, such as saved preferences and order history for reordering, are also adding to the convenience of consumers and encouraging them to opt for online grocery shopping, thereby driving the growth of the market.

Product Type Insights

The staples & cooking essentials segment accounted for the largest market share of over 27% in 2021. Repetitive buying of staples, such as flours, food grains, and cooking essentials, including oil, which are considered necessities, especially in the households across Asia Pacific, allowed the segment to dominate the market. The segment is expected to grow over the forecast period as consumers remain hesitant to step out and shop for the grocery they require daily and prefer avoiding crowds and following social distancing norms in the wake of the outbreak of the pandemic.

The breakfast & dairy segment is expected to emerge as the fastest-growing segment growing at a CAGR of over 25% from 2022 to 2030. The growth of the segment can be attributed to the rising demand for various milk and non-milk products and the doorstep delivery of these products being facilitated by vendors. A hectic lifestyle coupled with the rising levels of disposable income is also prompting customers to order these products from online platforms rather than visiting a physical store, especially in the wake of the outbreak of the pandemic.

Regional Insights

North America accounted for a revenue share of around 15% in 2021. North America is home to several key players, including Walmart; Instacart; Amazon.com, Inc.; Target; and The Kroger Co.; among others. The U.S. is particularly witnessing steady growth in e-commerce sales. According to the U.S. Department of Commerce Retail Indicator Division, e-commerce sales increased 14.2% over the year to USD 870 billion in 2021. However, the recovery of in-store or offline shopping in line with the easing restrictions could challenge any potential growth in online sales figures.

Asia Pacific accounted for the largest market share in 2021. The regional market is expected to continue dominating the market and grow at a CAGR of almost 28% from 2022 to 2030. The growth of the regional market can be attributed to the initiatives being pursued by the governments of countries, such as India and China, to promote e-commerce and digitalization. For instance, in June 2016, the government of India announced to allow 100% FDI in food retail, including via e-commerce channels, provided the items are produced, processed, and manufactured indigenously.

Key Companies & Market Share Insights

The online grocery market can be described as a fragmented market characterized by intense competition between the key market players. Some of the major players operating in the market include Alibaba.com; Amazon.com, Inc.; JD.com, Inc.; Rakuten; Instacart; and Walmart. These companies are pursuing various inorganic growth strategies to remain competitive while catering to the changing consumer needs. Smaller players are particularly collaborating with market leaders to build the infrastructure, scale, and capabilities that would otherwise require years to build. Some of the prominent players in the global online grocery market include

• AEON Co., Ltd.

• Alibaba.com

• Amazon.com, Inc.

• Blinkit (formerly Grofers)

• Instacart

• JD.com, Inc.

• Natures Basket Limited.

• Rakuten

• Reliance Retail (Reliance Fresh)

• Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)

• Target Brands, Inc.

• Tesco.com

• The Kroger Co.

• Walmart

Online Grocery Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global online grocery market report based on product type and region:

• Product Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Fresh Produce

  • Breakfast & Dairy

  • Snacks & Beverages

  • Meat & Seafood

  • Staples & Cooking Essentials

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Poland

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa