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online grocery market

Online Grocery Market Share, Size, Trends, Industry Analysis Report, By Product Type (Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, Others); By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jun 2022
  • Pages: 117
  • Format: PDF
  • Report ID: PM2459
  • Base Year: 2021
  • Historical Data: 2018 - 2020

Report Summary

The global online grocery market was valued at USD 285.36 billion in 2021 and is expected to grow at a CAGR of 24.6% during the forecast period. Factors such as increased urbanization, rising working population, hectic schedules, and increasing passive lifestyle adoption are expected to drive the growth of the online grocery market.

Online Grocery Market Size

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Consumers intend to choose alternatives that provide flexibility and punctuality in terms of time, provided their increasingly busy schedules and desires for a successful career life. Online retailers offer both convenience and flexibility because shopping hours are not restricted, and customers are free to shop at any time that suits them.

Furthermore, the widespread use of internet services, the proliferation of smart devices, and the availability of simple virtual payment methods make online platforms easier and more convenient for customers, resulting in increased demand for the online grocery industry. In addition, the rising trend of sustainable delivery and eco-friendly packaging is also accelerating industry growth as consumers are becoming increasingly conscious about their purchasing decisions.

The outbreak of the COVID-19 pandemic has led the global industry to battle an economic crisis. However, the pandemic has exhibited a positive impact on the growth of the industry. Many people have turned to internet shopping to avoid crowded places and human contact as a result of the pandemic.

No human interaction resulted in a surge in the online sale of goods. Since the pandemic, retail brands such as Blinkit, BigBasket, Amazon, and others have seen over a 60% boost in grocery sales. Furthermore, the gradual opening of lockdown is offering several growth prospects to the industry growth.

Industry Dynamics

Growth Drivers
The growth of the industry is attributed to easy doorstep product delivery, better quality products, along with no geographical boundaries. Consumers are more likely to choose online purchasing than physical shopping because of the convenience of door-to-door delivery. Companies selling their items on the internet nowadays provide superior product quality, which boasts a customer's willingness to order from a specific website on a regular basis.

The development of the industry is due to the increased focus on expanding e-commerce business and the adoption of attractive marketing strategies. Due to rising competitiveness and the availability of a large number of shops in unorganized sectors, online stores are increasingly adopting free delivery policies and offering significant discounts. Consumers value timely and hassle-free delivery, which is fueling the growth of the online grocery business.

Report Segmentation

The market is primarily segmented on the basis of product type and region.

By Product Type

By Region

  • Fresh Produce
  • Breakfast & Dairy
  • Snacks & Beverages
  • Meat & Seafood
  • Staples & Cooking Essentials
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Spain, Netherlands, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Insight by Product Type

The staples & cooking essentials segment accounted for the largest market share in 2021. Increased consumption of staple foods such as rice, corn, wheat, etc., and cooking essentials including oil, seasonings & spices, sugar, and others on a regular basis is expected to boost the segment's growth in the global market.

Furthermore, a food staple is food that is consumed in large quantities by a population. Since food staples provide a significant amount of a person's energy and nutritional requirements, the demand for the staples and cooking essentials is anticipated to rise over the forecast period.

The breakfast & dairy segment is expected to witness the fastest-growing segment over the forecast period. Increased dairy consumption in emerging economies such as India, China, and Japan are expected to propel the growth of the online grocery market. Additionally, the industry is being driven by consumers' increasing awareness of health and the intake of nutritious foods to preserve good health.

Geographic Overview

Asia Pacific accounted for the largest market share in 2021 and is expected to continue dominating the industry over the forecast period. Increased demand for the industry is being driven by factors such as rising population, increased disposable income, and sophisticated food-loving consumers across the region. Furthermore, increased mobile accessibility and broadband adoption are challenging the traditional grocery-buying business model, allowing customers to buy food from anywhere, at any time.

Various social trends have fostered the rise in popularity of online grocery shopping in the Asia Pacific, such as road congestion and prolonged working hours. In most Asian cities, traffic congestion is a regular phenomenon, making travel extremely stressful. Also, Asian countries have the longest working hours, necessitating the need to online products online in order to save time and effort. As a result, the growth of the industry is anticipated to grow.

Moreover, North America is expected to account for a significant share of the global market. The increased proliferation of e-commerce platforms along with the rapid digitization across the region is projected to support the expansion of the online grocery market in North America. The outbreak of the Coronavirus has resulted in a large increase in online grocery purchases in the region. This trend is likely to continue over the forecast period.

Competitive Insight

Some of the major players operating in the global 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., and Walmart.

In 2020, Walmart announced a partnership with Instacart for same-day grocery delivery. The partnership allows Walmart’s to better compete with Amazon as grocery e-commerce skyrockets from COVID-19. This partnership serves Walmart customers in four pilot markets including Los Angeles, San Francisco, San Diego, and Tulsa, Olka, offering access to Walmart’s grocery delivery services when ordering via Instacart.

Online Grocery Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 285.36 Billion

Revenue forecast in 2030

USD 1,894.15 Billion

CAGR

24.6% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD Billion and CAGR from 2022 to 2030

Segments covered

By Product Type, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key companies

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., and Walmart

 

Key Take-Away
Polaris Market Research
Online Grocery Market Size Global Report, 2022 - 2030