B2B Online Grocery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Category (Fruits & Vegetables (Raw & Processed), Condiments and Seasoning, Food Grains & Flours, Bread & Bakery, Dairy Products, Meat, Poultry & Seafood, Others (Other Snacks & Confectionery, Beverages, Others Processed Foods, etc.)), By Mode of Payment (Pre-Delivery Online Payment, Online Payment on Delivery, Cash on Delivery), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 20.99 Billion
CAGR (2026-2031)	10.82%
Fastest Growing Segment	Fruits & Vegetables
Largest Market	North America
Market Size (2031)	USD 38.88 Billion

Market Overview

The Global B2B Online Grocery Market will grow from USD 20.99 Billion in 2025 to USD 38.88 Billion by 2031 at a 10.82% CAGR. The Global B2B Online Grocery Market is defined as the digital exchange of food and beverage products between businesses, facilitating transactions among manufacturers, wholesalers, retailers, and foodservice operators. The market is increasingly driven by the need for enhanced operational efficiency and supply chain visibility, which allows companies to automate procurement and optimize inventory levels. According to FMI – The Food Industry Association, in 2024, 69% of food suppliers reported utilizing artificial intelligence to optimize operations such as assortment planning and supply chain logistics. This technological integration supports the shift toward streamlined, data-driven purchasing models.

However, a significant challenge impeding market expansion is the complexity of cold chain logistics. The rigorous requirement for temperature-controlled transportation to maintain product freshness necessitates expensive infrastructure, which imposes substantial operational costs and limits scalability for many distributors. Ensuring the timely delivery of perishable goods without compromising quality remains a critical barrier that businesses must overcome to fully capitalize on digital adoption.

Key Market Drivers

The rapid digital transformation of traditional retailers and small businesses is a primary force propelling the Global B2B Online Grocery Market. Small-format stores, such as independent grocers and mom-and-pop shops, are increasingly migrating to mobile-based B2B ordering platforms to modernize their procurement, bypassing legacy wholesale channels. This digitization allows smaller enterprises to optimize inventory, reduce stockouts, and access wider product assortments with greater agility, directly connecting them with manufacturers. According to Unilever, April 2025, in the 'AI and e-commerce tools transform emerging market retail' article, the company's dedicated B2B digital platform for independent retailers currently processes 75,000 orders daily and supports annualized sales of €2.5 billion.

Simultaneously, the strategic expansion of major e-commerce players into wholesale segments is reshaping the competitive landscape. Retail giants are aggressively scaling their digital capabilities to capture a larger share of the B2B grocery market, leveraging advanced logistics networks to serve foodservice operators and corporate clients more efficiently. According to SeafoodSource, February 2025, in the 'Walmart, Loblaws report increased revenue' article, Walmart reported a 20% year-over-year increase in U.S. e-commerce sales during the fiscal fourth quarter of 2025, highlighting the effectiveness of these expanded digital initiatives. This aggressive growth reflects a broader industry trend where manufacturers and distributors are prioritizing online channels to drive volume. According to Nestle, February 2025, in the 'Full-Year 2024 Results' report, organic growth in e-commerce sales reached 11.3%, accounting for 18.9% of total group sales.

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Key Market Challenges

The complexity of cold chain logistics constitutes a formidable barrier to the expansion of the Global B2B Online Grocery Market. Unlike non-perishable goods, food and beverage products require strict temperature adherence throughout the entire supply chain to prevent spoilage and ensure safety. This necessity demands specialized infrastructure, including refrigerated storage facilities and climate-controlled transport fleets, which significantly elevates capital and operational expenditures. Consequently, distributors often struggle to extend their service capabilities into new geographic regions without incurring prohibitive costs, limiting the market's scalability and its ability to serve a wider network of commercial buyers effectively.

These operational burdens are further intensified by rising sector-specific costs, which directly hamper financial sustainability. According to the Global Cold Chain Alliance, in 2024, expenses for refrigerated warehouses rose by 6.09% in the third quarter relative to the same period in the previous year. Such escalating financial pressures erode profit margins, making it difficult for B2B platforms to maintain competitive pricing structures while upholding rigorous quality standards. This economic strain forces many businesses to consolidate resources rather than expand, thereby slowing the overall growth trajectory of the digital grocery sector.

Key Market Trends

The adoption of sustainable electric vehicle fleets for last-mile logistics is becoming a critical operational focus as major food distributors strive to decarbonize their supply chains and mitigate volatile fuel costs. This transition is driven by intensifying regulatory pressure and corporate sustainability commitments, compelling logistics providers to replace traditional diesel trucks with zero-emission alternatives for urban and regional deliveries. By integrating heavy-duty electric tractors, companies can significantly lower Scope 1 and 2 emissions while maintaining the reliability required for high-volume food distribution. According to Sysco Corporation, May 2024, in the 'Sysco Celebrates Growth of Electric Fleet' press release, the company successfully expanded its global fleet to nearly 120 heavy-duty electric vehicles, a strategic investment aimed at achieving its long-term climate goal of reducing direct emissions by 27.5%.

Simultaneously, the expansion of private label and white-label product assortments is reshaping procurement strategies as foodservice operators increasingly seek cost-effective alternatives to mitigate inflationary pressures. Distributors are aggressively developing and scaling their exclusive brands to offer competitively priced, high-quality substitutes for national products, thereby protecting margins and deepening customer loyalty among independent restaurant owners. This shift allows wholesalers to control pricing dynamics more effectively while offering a differentiated value proposition to cost-conscious buyers. According to Performance Food Group, August 2024, in the 'Fourth-Quarter and Full-Year Fiscal 2024 Results' report, the company achieved a 3.7% increase in organic independent foodservice case volume, explicitly citing the opportunity to expand private brand penetration within its network as a key component of its growth strategy.

Segmental Insights

Based on recent market analysis, Fruits & Vegetables has emerged as the fastest-growing segment within the Global B2B Online Grocery Market. This expansion is primarily fueled by the heightened demand from commercial buyers, such as restaurants, hotels, and retailers, for fresh and organic produce. Enhanced cold chain infrastructure and digital supply chain solutions have significantly mitigated spoilage risks, enabling the reliable bulk delivery of perishable goods. Additionally, the growing emphasis on food traceability and quality assurance encourages businesses to source fresh inventory online, thereby streamlining procurement processes and ensuring consistent product standards.

Regional Insights

North America holds a dominant position in the global B2B online grocery market due to a highly developed digital infrastructure and widely adopted e-commerce procurement methods. Businesses in the United States and Canada increasingly utilize online platforms to streamline supply chain operations and improve inventory management. This growth is supported by strict adherence to safety standards established by the Food and Drug Administration, which builds essential trust for digital food transactions. Consequently, retailers and hospitality providers continue to shift bulk purchasing activities toward these efficient online channels.

Recent Developments

• In January 2025, Instacart expanded its presence in the business sector by forming a strategic partnership with Cut+Dry, a B2B ecommerce platform serving the foodservice industry. This collaboration integrated Instacart’s retail media technology, known as Carrot Ads, directly into the partner's platform, granting consumer packaged goods brands access to a new audience of restaurant operators and distributors. The General Manager of Instacart Business and Supply Chain noted that this initiative would unlock additional revenue streams for distributors while providing operators with detailed product information and menu inspiration. The move signified a major step in connecting brands with buyers in the multibillion-dollar foodservice market.
• In October 2024, Choco, an AI-powered platform revolutionizing the food supply chain, launched a new mobile application specifically tailored for distributor sales representatives. This tool was introduced to empower sales teams at food wholesalers with data-driven insights, enabling them to analyze customer ordering behaviors and strengthen business relationships. The application featured AI-powered alerts that notified representatives of upsell opportunities and potential churn risks in real-time. The CEO of Choco emphasized that the new product was designed to transform how wholesalers operate, allowing them to anticipate customer needs and maximize the profitability of every interaction within the competitive distribution market.
• In April 2024, Ninjacart, a prominent agri-startup focused on the fresh produce supply chain, entered into a strategic partnership with Mayani, a Philippine B2B agritech innovator. This collaboration involved the deployment of capital, advanced supply chain technology, and advisory services to help digitize and organize the agricultural ecosystem in the Philippines. The alliance was established to identify global food supply gaps and build an integrated Asian agri-food supply chain. By sharing its expertise in inventory management and source traceability, Ninjacart aimed to support its partner in achieving hyper-efficiency and predictive modeling, thereby enhancing the overall resilience of the cross-border market.
• In March 2024, Jumbotail, a leading B2B marketplace and retail platform, secured Rs 151 crore in a Series C3 equity funding round led by a Singapore-based venture capital firm. The company announced plans to utilize this capital to scale its suite of go-to-market products and services, which are designed to assist new and emerging brands in reaching mass-market consumers through a nationwide network of neighborhood stores. The Co-founder and COO of Jumbotail stated that the investment would strengthen the company's leadership position by allowing it to deepen its presence in existing markets and leverage AI-driven technologies to drive operational profitability.

Key Market Players

• Walmart Inc.
• Alibaba Group
• Amazon.com, Inc.
• The Kroger Co.
• EC21, Inc.
• eWorldTrade, Inc.
• BigBuy
• 3 Seasons Technology Co., Ltd.
• OKNETTV PTY LTD
• SeeBiz Inc.

By Product Category	By Mode of Payment	By Region
Fruits & Vegetables (Raw & Processed) Condiments and Seasoning Food Grains & Flours Bread & Bakery Dairy Products Meat Poultry & Seafood Others (Other Snacks & Confectionery, Beverages, Others Processed Foods, etc.)	Pre-Delivery Online Payment Online Payment on Delivery Cash on Delivery	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global B2B Online Grocery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• B2B Online Grocery Market, By Product Category:

• Fruits & Vegetables (Raw & Processed)
• Condiments and Seasoning
• Food Grains & Flours
• Bread & Bakery
• Dairy Products
• Meat
• Poultry & Seafood
• Others (Other Snacks & Confectionery, Beverages, Others Processed Foods, etc.)

• B2B Online Grocery Market, By Mode of Payment:

• Pre-Delivery Online Payment
• Online Payment on Delivery
• Cash on Delivery

• B2B Online Grocery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE