Online Grocery Market Size To Reach $992.35 Billion By 2033

Online Grocery Market Growth & Trends

The global online grocery market size is expected to reach USD 992.35 billion by 2033, registering a CAGR of 36.8% from 2025 to 2033, according to a new report by Grand View Research, Inc. The changing consumer behavior, the growing preference for contactless shopping and adherence to social distancing norms, and a paradigm shift toward buying fresh food and grocery online, particularly in the wake of the outbreak of the COVID-19 pandemic, are some of the major factors that are expected to drive the growth of the market over the forecast period.

Continued urbanization, the rising number of tech-savvy consumers, and the unabated growth of the e-commerce industry worldwide have been driving consumer preference toward buying the essentials over the internet. Easy access to a myriad of products from different vendors, ease of ordering, seamless digital payments, attractive offers, such as discounts and cashback, and convenient and flexible delivery have also been encouraging consumers to consider e-commerce channels for buying the essentials. As a result, online penetration in grocery shopping increased three folds as of the end of 2020 from the pre-pandemic levels.

The rise of shopping subscriptions is another factor driving the growth of the market. Almost every major market player is offering a subscription option for consumers. For instance, in the U.S., Kroger Co. offers a USD 79 annual subscription program known as the “Delivery Savings Pass”. The program envisages waiving the fees worth USD 10 the company usually charges for delivery, albeit the orders need to be of USD 35 or more. Similarly, Walmart’s Walmart+ membership program also charges customers USD 98 per year for free delivery on all grocery orders worth more than USD 35.

In India, leading market players, such as BigBasket and Blinkit (formerly Grofers), have been playing a niche role in driving the adoption of subscription services rapidly. For instance, BigBasket’s BB Star Membership program starts at USD 3.92 (INR 299) for six months and allows customers to avail of free delivery, cashback, and access to priority slots. The benefits associated with such subscription services are expected to help online grocers in building trust among customers, and subsequently, encourage more customers to opt for the annual subscription services, thereby driving the growth of the market over the forecast period.

The outbreak of the pandemic has played a decisive role in driving the preference for ordering groceries online. While some individuals opted for the e-commerce channel for convenience, others opted for the same to enjoy a user-friendly shopping experience. However, factors, such as the lack of any personalized involvement and the inability to touch and feel the product to check its freshness and durability are expected to hinder the market growth. A looming lack of trust in online payment methods, especially in emerging economies, is also expected to restrain the growth of the market.

 Request a free sample copy or view report summary: Online Grocery Market Report

Online Grocery Market Report Highlights

• The staples & cooking essentials segment dominated the online grocery industry and accounted for a revenue share of 29.1% in 2024, due to the widening product assortment and regional customization.

• The breakfast & dairy segment is anticipated to grow at a significant CAGR during the forecast period, due to the rising health awareness and the shift toward protein-rich diets.

• The rising demand for convenience and time-saving solutions among working professionals and busy households is propelling the growth of online grocery platforms

• The North America online grocery market held a significant share of the global market in 2024, driven by high internet penetration, widespread smartphone usage, and the integration of advanced technologies such as AI, machine learning, and voice assistants for personalized shopping experiences

Online Grocery Market Segmentation

Grand View Research has segmented the global online grocery market report based on product type and region:

Online Grocery Product Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Fresh Produce

• Breakfast & Dairy

• Snacks & Beverages

• Meat & Seafood

• Staples & Cooking Essentials

• Others

Online Grocery Regional Outlook (Revenue, USD Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in Online Grocery Market

• AEON Next Co., Ltd.

• Alibaba.com.

• Amazon.com, Inc.

• Blink Commerce Private Limited

• Instacart

• JD.com, Inc.

• Nature’s Basket Limited.

• Ebates Performance Marketing Inc., d/b/a Rakuten Rewards

• Reliance Industries Limited (JioMart)

• Supermarket Grocery Supplies Pvt. Ltd.

• Target Brands, Inc.

• Tesco.com

• The Kroger Co.

• Walmart