Online Grocery Market Size
Online Grocery Market to surpass USD $2074.9 B by 2030 from USD $285.16 B in 2021 at a CAGR of 24.80% in the coming years, i.e., 2021-30.
We are residing in a connected commerce era where consumers aren't entirely into the online or in-store shopping category; rather they're taking a blended approach i.e. choosing in step with their needs. Adoption of intersecting points of the physical and virtual world and leveraging technology to satisfy customers is a success mantra for retailers and makers. The online grocery shopping trend is driven in numerous parts by the idea of maturation of the digital native: Millennials and Generation Z.
Market Highlights
Online Grocery Market is expected to project a notable CAGR of 24.80% in 2030
Online Grocery Market to surpass USD $2074.9 B by 2030 from USD $285.16 B in 2021 at a CAGR of 24.80% in the coming years, i.e., 2021-30.. The online Grocery market has grown enormously in importance in recent months due to the changing lifestyle of consumers, increasing urbanization, and the tech-savvy generation who prefer to buy products online. Use convenient and customizable online platforms to shop for groceries instead of going to local vendors.
Online Grocery Market: Segments
Staples and Cooking Essentials segment to grow with the highest CAGR during 2021-31
The online Grocery market is segmented by Product Type into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, and Others. The Staples and Cooking Essentials segment held a notable share in 2020 attributed to the repetitive shopping of staples that include food grains, flours, and essentials like oil that are fundamental requirements of the many households within the Asia Pacific. Furthermore, changing lifestyles and rising income are paving the way for growth over the following seven years.
Online segment to grow with the highest CAGR during 2021-31
The online Grocery market is segmented by Payment Method into Online and Offline. The Online segment dominated the Online Grocery market in 2020 and is expected to grow with the highest CAGR in the forecast period. The growth in this segment is due to the growing preference for online payments.
Online Grocery Market: Key Players
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Amazon India Pvt. Ltd.
(Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)
- Godrej Nature's Basket Ltd.
- Grofers India Pvt. Ltd.
- Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
- Reliance Retail Ltd. (Reliance Fresh)
- Spencer's Retail
- Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
- UrDoorstep eRetail Pvt. Ltd.
- Other Prominent Players
Online Grocery Market: Regions
Online Grocery Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, Asia Pacific, the Middle East, and Africa. Europe Online Grocery Market accounted for the biggest amount of share in 2019. The presence of leading retail grocery chains and therefore the growing popularity of online shopping in countries like the United Kingdom, Germany, Spain, France, and Italy are driving the regional market growth. The COVID-19 pandemic is providing a big short-term boost to the industry. In keeping with Waitrose & Partners, a brand of supermarkets, out of 2,000 consumers within the UK, 60% have shopped online for groceries since the pandemic with 40% citing convenience as the primary reason.
Segmentation
- By Product Type
- Fresh Produce
- Breakfast & Dairy
- Snacks & Beverages
- Meat & Seafood
- Staples & Cooking Essentials
- Others
- By Payment Method
- Online
- Cash on Delivery
- Online Grocery Market Dynamics
- Online Grocery Market Size
- Supply & Demand
- Current Trends/Issues/Challenges
- Competition & Companies Involved in the Market
- Value Chain of the Market
- Market Drivers and Restraints
Frequently Asked Questions (FAQ):
Online grocery market refers to the segment of the grocery and food-retail industry where consumers purchase food items, fresh produce, staples, snacks, beverages and household essentials via web or mobile platforms rather than visiting physical stores. It covers the e-commerce platforms, mobile apps, delivery networks, payment systems and logistics infrastructure that support the digital purchase and home delivery of groceries.
According to the Fatpos Global report, the online grocery market was valued at around USD 285.16 billion in 2021 and is projected to reach approximately USD 2,074.9 billion by 2030, which implies a compound annual growth rate (CAGR) of about 24.80 % during the period from 2021 to 2030
Growth in the online grocery market is driven by several key factors. These include increasing internet and smartphone penetration, changing consumer lifestyles with greater demand for convenience and home delivery, rising urbanization, the increasing digital-native population (Millennials and Gen Z), and the growth of platforms offering seamless shopping, payment and delivery. The report highlights that consumer preference for online payments and the shift towards blended-online/physical buying
Despite strong growth prospects, the online grocery market faces some significant challenges. High logistics and delivery costs, especially for fresh and perishable items, maintaining cold-chain infrastructure, ensuring data accuracy and inventory management, consumer concerns about freshness and product quality, and intense competition leading to margin pressure are obstacles. Moreover, in some regions inadequate rural infrastructure or limited internet access can inhibit market penetration.
Emerging trends in the online grocery market include the rise of mobile-first shopping experiences, faster-delivery options (including same-day or express), expansion of private-label grocery items, greater focus on fresh, organic and premium groceries, subscription-based models, improved data analytics for personalisation, and increasing investment in last-mile logistics and automation. Blending online and offline experiences (omnichannel) is also gaining traction as retailers seek to meet evol
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