Online Grocery Market Report by Products (Ready-to-eat Breakfast & Dairy, Staples & Cooking Essentials, Snacks & Beverages, Meat & Seafood, Fresh Produce, Others), Purchaser Type (Ready-to-eat Subscription Purchase, One Time Purchase), Delivery Type (Ready-to-eat Click & Collect, Home Delivery), Payment Mode (Online, Cash on Delivery), Regions and Company Analysis 2024-2032

Online Grocery Market Analysis

Global Online Grocery Market was US$ 492.22 Billion in 2023 and anticipated to surpass US$ 2,984.27 Billion by 2032. It is expected to expand at a CAGR of 22.17% from 2024 to 2032, according to Renub Research.

The online grocery industry is a digital platform in which buyers can buy diverse food and household products online. This digital market gives comfort, a wide product selection, and time saving advantages to consumers. The online grocery industry has witnessed numerous latest trends that are focused on enhancing online grocery delivery offerings. in March 2023, Amazon.Com has teams up with Rite Aid to offer 2-hour delivery to Prime members for cosmetics and groceries essentials.

Online Grocery Market Survey

    Today, there are more than 26 million e-commerce websites in the world, and more are being created every day.

    87% of consumers recommended using their mobile devices to do online grocery shopping.

    A recent study found that 51% of young people would consider switching brands if they were given flawless digital services.

    72% of consumers choose to purchase for groceries online due to its convenience.

    87.2% of Americans who are 15 years of age or older in 2022 said they usually shop for groceries in person or online. 19.3% of them have purchased groceries online in the next 30 days.

    Online grocery shopping has a bright future ahead of it, according to a PWC document that projects a massive increase in the European industry by 2050. Online grocery shopping is expected to account for between 35% and 50% of the market in countries including Germany, France, the UK, Turkey, and the Netherlands, according to PWC's estimate.

    More than half of Chinese online shoppers will use smartphones by 2024.

    From 9.0% in 2018 to 19.0% in 2021, more people in China purchased groceries online. By 2025, this percentage is predicted to reach over 30%.

    India's e-retail customers are predicted to number between 230 and 250 million by 2023, with an additional 100 million expected in the last three years. One-third of Gen Z customers are online, and 70% of them reside in Tier 2+ locations. Approximately one-third of internet users come from low-earnings or low-center-income families.

Recent Merger & Acquisition in Online Grocery Market  

• In July 2023, Swiggy joined the retail food and grocery business by acquiring LYNK Logistics Ltd.
• In July and October of 2023, Kering successfully acquired Creed and bought a 30% stake in Valentino.
• Aldi purchased Winn-Dixie and Harveys Supermarket in 2023.
• L'Oreal announced in April 2023 that it was acquiring Aēsop.
• Getir purchased FreshDirect from Ahold Delhaize USA in 2023.
• Price Chopper acquired five former ShopRite locations in New York in 2023.
• Mid-Missourian grocery store Moser's Foods was purchased by PFSbrands in 2023.
• A merger between Foxtrot and Dom's was announced in 2023.
• The three-store Wisconsin grocer Metcalfe's Market was purchased by SpartanNash in April of 2024.
• When Kroger Co. and Albertsons Cos. announced their merger in October 2022, a number of parties, including lawmakers, national unions, and industry participants, expressed concerns.

United States Grocery Market

North America and more specifically United States represent one of the biggest and most developed grocery markets world-wide. It is hybrid in nature which comprises of regular grocery stores, convenience stores and online grocery malls, including Amazon Fresh and Walmart Grocery. It has been found that the option of doing grocery purchase through the internet has become rife in the market with the help of advanced technology and especially after COVID-19 pandemic, the usage of the internet for the purpose of shopping groceries among the population has been increased at a very faster pace. Therefore, most grocery retailers have sought to invest in the online buying platforms, home delivery networks, as well as the contactless payment solutions. Apart from electronic selling, there is a continuous market for organic products, free from genetically modified contents, and plant-based products due to the health and fitness buzz. Another aspect that has been elicited is the fear of the environment and thus consumers looking for eco-friendly packaging and locally made products. Expenditure on grocery products is set to grow further in the U. S. market with advancing technology in grocery delivery services, automation and augmented selling techniques deemed to propel the market even further.

Germany Grocery Market

Today Germany can be considered to be belonging to the league of the leading grocery markets in Europe. The country is considered to have a highly developed discount retail market which is led by giants such as Aldi and Lidl. These companies have become major players in the grocery shopping economy by offering only the best brands and products in addition to very reasonable prices for those who are conscious with their money spending. Besides discount stores which are popular among German consumers, a large importance in the grocery market place is given to organic and local food production means. This is the case since many shopper in Germany prefers to purchase organic food produced within the country, which is indicative of the nation’s stewardship towards sustainability as well as health conscious customers.

In addition, the German grocery market is already highly receptive to this shift in electronic commerce as many of the traditional grocery stores have expanded their operations into the online platform. Delivery services such as REWE and Edeka have emerged has popular platforms for grocery delivery services. The continuous growth of the Internet and the increasing use of computers in grocery retail via the AI Grocery Warehouse and other forms of AI customer service are expected to move the German grocery market forward.

China Grocery Market

China grocery market is given by dynamic forces such as; rapid urbanization, increasing incomes, and expanding middle class. Alibaba’s Tmall and JD are the two major players that control most of the grocery business in the country through e-commerce. com spearheading online sales. These platforms provide literally everything including and beyond fresh agricultural produce and imported consumer goods that meets the needs of the Chinese population. Also, electronics payment options through mobile, AI assistance in recommendation, and the logistics put in place have ensured easy online shopping for groceries. The Chinese consumers are shifting towards healthier and costly foods and hence the increase in consumption of organic foods and imports. This trend being especially noticeable within urban environment where people lead increasingly active lives but try to minimize time they spend on cooking, and where health consideration come into focus. It is expected that the grocery market in China is set to maintain the growth trajectory with the help of technology, preferences shift and openness to digital channels.

India Online Grocery Market

With 500–600 million online shoppers, India is expected to have the second-largest global online consumer base by 2030. The expansion of the e-commerce sector, rising smartphone internet penetration, and the advantages of online purchasing have all contributed to the booming Indian online grocery market. Online food businesses are expanding into Tier-II cities as a result of growing earnings and urbanization. The difficulty of locating substantial property within towns and the evolution of working circumstances gave rise to the demand for online grocery stores. According to the text, by 2025, almost 87% of Indian families would have access to the internet, with mobile internet usage growing by 21% from 2019 to 2025.

•    BigBasket acquired $300M in investment from Alibaba in 2022, valuing the corporation at round $950M.

Saudi Arabia Grocery Market

The Saudi grocery market has recently been transformed through the implementation of government policies that encouraged the economic and foreign investment. The market and structure of groceries has changed tremendously due to the addition of supermarkets, hypermarkets and online grocery stores. More businesses are developing their online channels to cater for the growing consumer demand of online shopping as seen by Carrefour and Panda Retail. In addition, the concept of health is eliciting awareness among the people which leads to increased spending towards food products that are organic and health wise. It has been identified that the Saudi government’s focus towards food security and the development of agriculture in the country are set to influence the grocery market’s trajectory in the years to come.

Global Online Grocery Company Analysis

Online grocery market has vital market players such as Tesco Plc., Walmart Inc., Auchan SA, Kroger Co., Carrefour, Costco Wholesale Corporation, Koninklijke Ahold Delhaize N.V., and Target Corporation.

Global Online Grocery Company News

• To help independent and regional stores compete with larger groceries and provide e-trade services to clients, Stor.Ai and Mercatus Technologies merged in January 2024.
• Ahold Delhaize USA will sell FreshDirect to Getir, a leader in lightning-fast supermarket delivery, in November 2023. The decision was made to focus on investments across all channels.
• As of October 2023, Kroger will take EBT payments for orders placed for digital pickup and shipping.
• Woolworths New Zealand will launch the MILKRUN app in July 2023 and provide over 10,000 supermarket goods. The retailer, which moved from Countdown to Woolworths New Zealand, is dedicated to offering fantastic supermarket ratings.
• To provide quicker grocery delivery, Sainsbury's and Eat Takeaway teamed in January 2023.

Products – Market breakup in 6 viewpoints:

1.    Ready-to-eat Breakfast & Dairy
2.    Staples & Cooking Essentials
3.    Snacks & Beverages
4.    Meat & Seafood
5.    Fresh Produce
6.    Others

Purchaser Type – Market breakup in 2 viewpoints:

1.    Ready-to-eat Subscription Purchase
2.    One Time Purchase

Delivery Type – Market breakup in 2 viewpoints:

1.    Ready-to-eat Click & Collect
2.    Home Delivery

Payment Mode – Market breakup in 2 viewpoints:

1.    Online
2.    Cash on Delivery

Country – Market breakup of 25 Countries:

1.    North America

1.1    United States
1.2    Canada

2.    Europe

2.1    France
2.2    Germany
2.3    Italy
2.4    Spain
2.5    United Kingdom
2.6    Belgium
2.7    Netherland
2.8    Turkey

3.    Asia Pacific

3.1    China
3.2    Japan
3.3    India
3.4    South Korea
3.5    Thailand
3.6    Malaysia
3.7    Indonesia
3.8    Australia
3.9    New Zealand

4.    Latin America

4.1    Brazil
4.2    Mexico
4.3    Argentina

5.    Middle East & Africa

5.1    Saudi Arabia
5.2    UAE
5.3    South Africa

All the Key players have been covered from 3 Viewpoints:

•    Overview
•    Recent Development
•    Revenue Analysis

Company Analysis:

1.    Tesco Plc.
2.    Walmart Inc.
3.    Auchan SA
4.    The Kroger Co.
5.    Carrefour
6.    Costco Wholesale Corporation
7.    Koninklijke Ahold Delhaize N.V.
8.    Target Corporation

Report Details: