Europe Online Grocery Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Europe Online Grocery Market Outlooks

Online grocery is the purchase of food, beverages, and other household essentials through digital platforms such as websites or mobile apps instead of visiting physical stores. Online grocery shopping has gained momentum in Europe due to technological advancements, changing consumer preferences, and the increasing need for convenience.

With the help of online grocery services, customers can access large product catalogues, compare prices, and make orders from home. Most platforms offer different kinds of delivery, such as doorstep and click-and-collect services, which are quite flexible and save time for the users. For Europe, convenience is only one of the uses of online grocery services. They cater to busy urban lifestyles, enable rural residents to access quality products, and promote sustainability through reduced food waste and eco-friendly delivery practices. With the COVID-19 pandemic, online grocery platforms became an essential mode for safe shopping, which therefore led to the pervasive adoption of online grocery. Thus, online grocery has become a vital component of modern European households.

Growth Drivers of the Europe Online Grocery Market

Increasing Internet and Smartphone Penetration

Internet access and penetration of smartphones are revolutionizing the online grocery market, and there has been exponential growth in terms of usage, mainly due to widespread penetration throughout Europe. The multitude of grocery applications and websites provides much ease of grocery shopping, from a consumer point of view, while improving their daily needs. This includes user-friendly interfaces, relevant recommendations, and ease of making payments for groceries ordered. Furthermore, digital connectivity has even connected the most remote rural areas, making even more customers reachable for online grocers. By the end of 2024, 520 million people in Europe (88% of the population) will subscribe to a mobile service, and mobile internet adoption would reach 79% of the population, or 471 million users, at an estimated increase of more than 150 million since the turn of this decade.

Growing Demand for Convenience

With the ongoing fast pace in Europe, many are seeking fast shopping solutions convenient for them to save time for other things, and the concept of online platforms for grocery selling has become a necessity in such matters. Customers often find themselves struggling with long travel times to conventional stores. Grocery online platforms deliver groceries to customer doorsteps at times chosen to suit the shopper's busy modern schedule. Additionally, most of these services provide subscription plans where customers can manage their shopping requirements effortlessly and make sure that their favorite items are available at all times. The increased demand for online grocery shopping also reflects the increasing need for ease and convenience in daily life.

Infrastructure of E-commerce

Rapid growth of e-commerce infrastructure across Europe has been much facilitated by strong investment in advanced technologies as well as elaborate logistics systems. The whole process of such evolution has also accelerated market growth but also changes the way a retailer functions.  They carefully fine-tune their supply chain to be as lean as possible while implementing the more advanced real-time tracking mechanism so that transparency gets enhanced and aim to deliver effortless and intuitive experiences to customers. As a result, e-commerce is increasingly being adopted by a diverse group of demographics, as it caters to the different needs and preferences of consumers in this fast-changing landscape. The CEF Digital programme plays a critical role in enhancing Europe's digital infrastructure, with a total budget of €2bn allocated until 2027.

Challenges in the Europe Online Grocery Market

High Operational Costs

The online grocery market is facing a challenging landscape that is highly operational in nature. The biggest challenge in this regard is the high cost of logistics, warehousing, and delivery. In an effort to keep their costs under control, companies need to balance the tight profit margins of the grocery industry with competitive pricing. This balancing act is crucial, as it directly impacts their ability to attract and retain customers in a crowded marketplace.

Consumer Preference for In-Store Shopping

Despite the rise of online grocery services across Europe, a considerable number of consumers continue to favor the traditional experience of shopping in-store. This preference is more obvious with perishable goods, like fruits and vegetables, where the customers prefer to physically examine them before purchasing them. Their tactile experience in selecting the ripened produce and quality assessment of fresh goods has been very significant in their buying decisions. This means that this persistent inclination toward physical grocery shopping has become one of the greatest obstacles to the growth of the online grocery market in the region.

Online Groceries for Fruits and Vegetables Market in Europe

The European market for grocery shopping online with fruits and vegetables is highly growing because consumers increasingly want fresh, quality products with minimum hassle. The growing consciousness of health and convenience drive customers to make their grocery purchases online. Thus, the customer receives fresher products and experiences a higher level of satisfaction and trust in the retailers chosen. These quality focuses and attention on services provide a solid base for the online grocery sector as part of the European food market.

Europe Online Meat & Seafood Grocery Market

Notable growth within the meat and seafood segment can be observed within the European online grocery market, largely in response to increased demand for premium and sustainably sourced products from customers. To keep pace with this trend, retailers are responding by utilizing enhanced techniques like vacuum packaging and specialist cold storage methods. These processes not only keep the products fresh and of good quality but also make sure that they are delivered speedily to the customers. Both product integrity and rapid fulfillment are becoming more crucial in satisfying the changing demands of discerning shoppers.

Europe Online Grocery Subscription Purchase Market

Subscription services are gaining rapid popularity in the online grocery market of Europe. They are revolutionizing the shopping habits of the consumers. These innovative services are unmatched in terms of convenience, automating the process of recurring orders for staple items such as fresh produce, pantry essentials, and household necessities. This will save consumers both time and money, as frequent trips to the store are eliminated, and a steady supply of groceries is guaranteed. Thereby, the shopper's experience will be so seamless that it caters to their daily, common needs, thereby making meal planning and household management easier than ever.

Belgium Online Grocery Market

Belgium's online grocery market is growing very steadily, which again is driven by an increasing trend of urbanization and acceptance of digital technologies. There are significant players like Carrefour and Delhaize, which are actively investing in strengthening their online shop and logistics infrastructures. This strategic focus is aimed at being able to cater better to the surging demand from consumers, largely in urban centers such as Brussels and Antwerp, where the convenience of online grocery shopping is becoming part and parcel of daily life.

France Online Grocery Market

France's online grocery market continues to flourish owing to its strong and well-developed e-commerce infrastructure. Leclerc and Intermarché, among the top retailers, lead the way with streamlined delivery and easy pickup services that strike a chord with the increasing appetite for convenience in combination with premium-quality products in the nation. These retailers are effectively responding to consumer needs by providing a wide assortment of fresh produce, gourmet products, and household staples, making online shopping an increasingly attractive option for busy households across the country. In February 2022, following an international commercial agreement, France-based food retailer Carrefour and European online grocery marketplace Everli extended their partnership to ten towns in France.

Germany Online Grocery Market

Germany's online grocery market is rapidly growing, due to the rising adoption of e-commerce and strategic investments in cold-chain logistics. Retailers such as REWE and Amazon Fresh are improving delivery infrastructure, fine-tuning the supply chain to ensure that fresh produce and essential grocery items reach customers in urban centers and suburban neighborhoods. These developments not only enhance access for consumers but also ensure that the quality of food delivered is of high standards, making shopping a seamless experience in the fast-changing online world. November 2024, Knuspr, an online supermarket, has entered into a partnership with US e-commerce giant Amazon to deliver groceries to Amazon Prime members in Germany. The collaboration will begin under the name "Knuspr on Amazon".

Italy Online Grocery Market

Italy Online Grocery an excellent opportunity, as an increasing number of consumers shift toward digital platforms for their grocery needs. Most of them are now in pursuit of fresh produce and proper delivery services that remain relatively efficient. Major urban centers, such as Milan, Rome, and Naples, are facing immense growth in online grocery markets, where an increasingly busy lifestyle and greater needs for quality products drive the new directions in grocery shopping. As the hunger for online grocery shopping is growing, it is leading the retailers to understand their customers who need quality alongside convenience in this particular purchasing activity.

Europe Online Grocery Market Segments

Products – Market breakup in 6 viewpoints:

1.    Vegetables and Fruits
2.    Dairy Products
3.    Staples and Cooking Essentials
4.    Snacks
5.    Meat & Seafood
6.    Others

Purchaser Type – Market breakup in 2 viewpoints

1.    Subscription Purchase
2.    One Time Purchase

Delivery Type – Market breakup in 2 viewpoints:

1.    Click & Collect
2.    Home Delivery

Country: Market breakup of 12 Countries:

1.    Belgium
2.    France
3.    UK
4.    Germany
5.    Spain
6.    Italy
7.    Netherland
8.    Norway
9.    Sweden
10.    Switzerland
11.    Russia
12.    Turkey

All the companies have been studied from three points

1.    Overview
2.    Recent Development
3.    Revenue Analysis

Company Covered

1.    Tesco Plc
2.    ICA Gruppen AB
3.    Auchan SA
4.    Colruyt Group
5.    Carrefour
6.    Costco Wholesale Corporation
7.    Koninklijke Ahold Delhaize N.V.
8.    Ocado Group plc

Report Details: