Online Grocery Market to Grow with a CAGR of 21.36% through 2030

The online grocery market is driven by convenience, increasing internet penetration, changing consumer preferences, faster delivery options, technological advancements, better product variety, discounts, and the rise of mobile shopping platforms.

According to TechSci Research report, “Online Grocery Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, The global Online Grocery Market was valued at USD 54.51 Billion in 2024 and is expected to reach USD 173.67 Billion by 2030 with a CAGR of 21.36% during the forecast period. The global online grocery market has experienced significant growth over the past few years, driven by changing consumer behavior, advancements in technology, and increasing internet penetration across regions. Traditionally, grocery shopping was primarily conducted in physical stores, but with the rise of e-commerce and the increasing reliance on digital platforms, consumers now prefer the convenience of purchasing groceries online. This shift in shopping habits, accelerated further by the COVID-19 pandemic, has opened up new opportunities and challenges for both traditional grocery retailers and pure-play online platforms. The online grocery market is expected to continue its upward trajectory, driven by technological innovation, enhanced logistics, and the rising demand for convenience among consumers worldwide.

The increasing adoption of smartphones and internet access is one of the primary drivers behind the rapid growth of the online grocery market. In developed markets such as North America and Europe, high-speed internet and mobile app usage are commonplace, providing the infrastructure necessary for seamless online grocery shopping experiences. Emerging markets, particularly in Asia-Pacific and Latin America, are also witnessing substantial growth in online grocery shopping, thanks to the growing number of internet users and the proliferation of mobile devices. Consumers in these regions are increasingly turning to digital platforms for their grocery shopping needs, preferring the convenience of ordering from home rather than navigating crowded stores. As internet connectivity continues to expand, online grocery shopping is poised to become even more mainstream, further boosting the market’s growth.

Technological advancements have been pivotal in shaping the future of the online grocery market. Key innovations, such as artificial intelligence (AI), machine learning, and advanced data analytics, are transforming the online shopping experience. AI-powered recommendation engines, for example, help retailers suggest personalized products to customers based on their previous purchases and browsing behavior. Similarly, data analytics allows retailers to forecast demand more accurately, optimizing inventory management and reducing the risk of stockouts or overstocking. These technological developments not only enhance the user experience but also improve operational efficiency, making online grocery shopping more attractive to consumers and retailers alike. Furthermore, innovations in logistics, such as real-time tracking, automated warehouses, and optimized delivery routes, have played a crucial role in improving delivery speed and reducing costs, helping online grocery platforms offer faster, more reliable services.

Sustainability is another key challenge and trend in the online grocery market. With increasing awareness of environmental issues, consumers are demanding eco-friendly practices from retailers. This includes packaging alternatives such as biodegradable, recyclable, or reusable packaging to reduce waste. Additionally, there is growing demand for sustainable sourcing of food products, including organic, locally sourced, and ethically produced goods. Retailers are responding by implementing green initiatives, such as optimizing delivery routes to reduce carbon footprints, adopting electric delivery vehicles, and offering eco-friendly products. However, implementing these sustainable practices often comes with additional costs, and companies must balance the desire for eco-conscious practices with the need for profitability. As consumers continue to prioritize sustainability, companies that fail to adopt eco-friendly practices may risk losing customer loyalty to more environmentally responsible competitors.

The global online grocery market is experiencing robust growth due to factors such as increased internet and mobile penetration, technological advancements, and changing consumer preferences for convenience. The pandemic has significantly accelerated this shift toward online grocery shopping, and many consumers are likely to continue using online platforms even as restrictions ease. As technology continues to evolve, retailers will benefit from more efficient operations, personalized shopping experiences, and faster delivery options. Despite the growth prospects, challenges such as logistics complexities, supply chain disruptions, and the demand for sustainability remain key obstacles. Companies that can address these challenges while meeting the evolving demands of consumers will be well-positioned to succeed in this rapidly expanding market.

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on "Global Online Grocery Market.” 

The global Online Grocery Market is segmented into product type, delivery type, region.

The Instant Delivery segment is the fastest-growing in the global online delivery market, driven by consumer demand for speed and convenience. This service promises delivery within 30 minutes to an hour, catering to busy urban lifestyles where quick access to products, especially groceries and essentials, is crucial. The rise of quick-commerce platforms like Gorillas, Gopuff, and Getir has exemplified this shift, offering rapid delivery of everyday items. Technological advancements, such as real-time tracking and localized fulfillment centers, have made instant delivery more efficient and cost-effective, meeting the increasing consumer expectation for fast, on-demand shopping experiences.

Europe is emerging as the fastest-growing region in the global online grocery market, driven by increasing consumer adoption of e-commerce and advancements in digital infrastructure. The convenience of online shopping, coupled with fast and reliable delivery services, has significantly boosted demand across European countries. Factors like the growing preference for home delivery, the expansion of online platforms like Tesco, Carrefour, and Lidl, and the rise of quick-commerce companies contribute to this growth. Additionally, Europe's strong focus on sustainability, with eco-friendly packaging and locally sourced products, further enhances the appeal of online grocery shopping, positioning the region for continued expansion.

Major companies operating in global Online Grocery Market are:

• Target Corporation
• The Kroger Co.
• J Sainsbury plc.
• Amazon.com, Inc.
• Rakuten Group, Inc.
• Albertsons Companies, Inc.
• Woolworths Group Limited
• Reliance Retail Limited
• Walmart Inc.
• Tesco PLC 

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“The global online grocery market has experienced remarkable growth in recent years, driven by shifting consumer preferences, technological advancements, and changing lifestyles. With increasing internet penetration and smartphone adoption, consumers are turning to digital platforms for grocery shopping, valuing the convenience and time savings it offers. The COVID-19 pandemic accelerated this trend, pushing more people to embrace online shopping for essential goods. Key players like Amazon Fresh, Walmart, and regional platforms have expanded their services, providing a wider range of products, fast delivery options, and seamless shopping experiences. Technological innovations such as AI-driven recommendations, personalized shopping, and optimized logistics have enhanced the overall shopping experience, further fueling market growth. Additionally, the rise of mobile apps and subscription services for regular grocery purchases has contributed to the sector’s expansion. As consumer demand for convenience and sustainability increases, the online grocery market is expected to continue its strong growth trajectory in the coming years. “Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Online Grocery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Staples & Cooking Essentials, Others), By Delivery Type (Instant Delivery, Schedule Delivery), By Region, By Competition, 2020-2030F”, has evaluated the future growth potential of global Online Grocery Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Online Grocery Market.

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