Online Grocery Delivery Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Breakfast & Dairy Products, Fresh Produce, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, Others), By End User (Individuals and Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 391.59 Billion
CAGR (2026-2031)	25.26%
Fastest Growing Segment	Breakfast & Dairy Products
Largest Market	North America
Market Size (2031)	USD 1512.54 Billion

Market Overview

The Global Online Grocery Delivery Services Market will grow from USD 391.59 Billion in 2025 to USD 1512.54 Billion by 2031 at a 25.26% CAGR. The Global Online Grocery Delivery Services Market consists of digital platforms and logistics networks enabling consumers to order perishable food products and household essentials for direct home delivery. This sector is primarily propelled by rising internet penetration and rapid urbanization which create a need for efficient time management solutions among working professionals. Additionally a fundamental shift in consumer behavior towards convenience and the integration of automated logistics systems support the sustained expansion of digital food retailing.

However high operational costs associated with last mile delivery remain a substantial barrier to profitability. The complex requirement of maintaining cold chain integrity during transport further exacerbates these financial pressures for service providers. According to the Food Industry Association, in 2024, 7.1% of all grocery item sales were conducted online. This figure highlights the growing yet maturing nature of the sector as retailers navigate the balance between increasing consumer adoption and managing the expensive logistics required for fulfillment.

Key Market Drivers

Digital transformation and omnichannel strategies of traditional retailers constitute a primary driving force in the global online grocery sector, fundamentally altering how established market players compete. By integrating artificial intelligence and automating logistics, brick-and-mortar giants are bridging the gap between physical presence and digital convenience, thereby optimizing last-mile fulfillment. This strategic pivot allows retailers to leverage existing store networks as distribution nodes, significantly reducing delivery times and operational costs associated with pure-play models. The success of this approach is evident in recent financial performances; for instance, according to Walmart Inc., May 2024, in the 'First Quarter Fiscal Year 2025 Earnings Release', global e-commerce sales grew by 21%, driven largely by store-fulfilled pickup and delivery capabilities. Such integration not only retains the existing customer base but also attracts digital-native shoppers seeking reliability.

The emergence and expansion of Quick Commerce (Q-commerce) business models serve as the second critical driver, reshaping consumer expectations for speed and accessibility. This model utilizes hyper-local dark stores to facilitate the delivery of small batches of household essentials within minutes, catering specifically to impulse purchases and urgent needs in densely populated urban centers. The explosive trajectory of this segment highlights a distinct shift toward instant gratification over planned bulk buying. To illustrate this rapid adoption, according to Zomato Limited, May 2024, in the 'Shareholders Letter and Results for Q4FY24', its quick commerce division, Blinkit, recorded a 97% year-over-year growth in Gross Order Value. This surge contributes to the broader momentum of the delivery economy, where logistics platforms are seeing sustained activity. According to Uber Technologies, Inc., in 2024, delivery gross bookings grew 18% year-over-year in the first quarter, underscoring the robust and expanding demand for delivery services across the market.

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Key Market Challenges

The high operational costs associated with last-mile delivery constitute a significant impediment to the financial viability of the Global Online Grocery Delivery Services Market. Unlike non-perishable e-commerce, digital food retailing requires specialized cold chain logistics to preserve product quality from the warehouse to the consumer. This necessity for temperature-controlled vehicles and insulated packaging dramatically increases the cost per shipment, effectively eroding the thin profit margins that characterize the grocery sector. Furthermore, the logistical complexity of coordinating timely deliveries forces service providers to invest heavily in extensive labor and fleet management resources, creating a capital-intensive business model that is difficult to scale efficiently.

These financial burdens directly hamper market growth by limiting the ability of retailers to expand their service radiuses or maintain competitive pricing structures. The pressure on profitability often compels companies to pass costs onto consumers through delivery fees, which can deter adoption among price-sensitive demographics. According to the National Grocers Association, in 2025, labor and benefit costs for independent grocers reached a record 16.3% of net sales, highlighting the intensifying expense of maintaining the workforce required for fulfillment and delivery operations. This elevated cost structure forces retailers to focus on density over coverage, thereby slowing the broader penetration of online grocery services into new or less urbanized regions.

Key Market Trends

The Implementation of Sustainable and Green Last-Mile Delivery is becoming a defining trend as regulatory frameworks and consumer demand force retailers to decarbonize their logistics networks. Service providers are increasingly replacing fossil-fuel vehicles with electric fleets to mitigate the environmental impact of frequent, low-volume urban deliveries while simultaneously insulating operations from volatile fuel prices. This transition involves significant infrastructure investment but offers long-term operational resilience and brand differentiation in a crowded market. According to Tesco PLC, October 2025, in the 'Tesco motors towards 1,000th electric home delivery van milestone' press release, the retailer expanded its UK electric home delivery fleet to 1,000 vehicles, keeping it on track to operate 1,250 electric vans by Spring 2026 as part of its commitment to carbon neutrality.

The Adoption of Subscription-Based Loyalty Programs represents a strategic pivot from aggressive user acquisition to maximizing customer lifetime value and retention. By offering benefits such as waived delivery fees, reduced service charges, and exclusive discounts in exchange for a recurring fee, platforms effectively lock in consumers and incentivize higher order frequencies compared to non-subscribers. This model stabilizes revenue streams against demand fluctuations and provides rich data for targeted upselling, which is crucial for profitability in low-margin food retailing. According to Grocery Dive, February 2025, in the 'Instacart reports mixed Q4 results as it misses Wall Street estimates' article, Instacart achieved a 10% year-over-year increase in Gross Transaction Value to $33.5 billion for fiscal 2024, a performance the company attributed significantly to the rapid growth and deepening penetration of its Instacart+ membership base.

Segmental Insights

The Breakfast & Dairy Products segment is currently positioned as the fastest-growing category within the Global Online Grocery Delivery Services Market, primarily due to the high-frequency consumption of these daily essentials. This rapid expansion is driven by the increasing consumer demand for fresh, protein-rich, and organic options, including specialized plant-based alternatives that are often more readily available online than in physical stores. Furthermore, the adoption of subscription-based delivery models has simplified the procurement of items with short shelf lives, ensuring consistent morning supplies. Continued investments in cold chain logistics have also bolstered consumer trust in the freshness of delivered perishables.

Regional Insights

North America maintains a leading position in the Global Online Grocery Delivery Services Market due to high disposable income levels and widespread internet accessibility. The region benefits from a mature e-commerce infrastructure where established retail giants and dedicated delivery platforms operate extensive distribution networks. This strong logistical framework supports efficient last-mile fulfillment, directly addressing the growing consumer demand for convenience and time-saving solutions. Furthermore, the integration of user-friendly mobile applications facilitates seamless ordering processes, thereby securing North America’s status as the primary contributor to global market revenue.

Recent Developments

• In December 2025, Amazon announced a significant expansion of its Same-Day Delivery service for fresh groceries, extending the offering to more than 2,300 cities and towns across the United States. This strategic move more than doubled the previous footprint of the service, positioning the e-commerce giant to better compete in the rapid delivery sector. The company reported that sales of perishable items through this channel had grown substantially throughout the year, with fresh produce becoming a dominant category in fast orders. The expanded service allowed Prime members to order products from Amazon Fresh and Whole Foods Market with greater speed and convenience.
• In December 2025, Instacart revealed a breakthrough integration with OpenAI, launching a dedicated app within the ChatGPT platform. This collaboration marked the first time a grocery company offered an embedded, end-to-end shopping and instant checkout experience directly within a conversational AI interface. The new feature enabled users to convert meal inspiration and recipes generated by the AI directly into shoppable lists and place orders for delivery in as little as one hour. By leveraging its extensive retailer network and real-time inventory data, the company aimed to seamlessly bridge the gap between culinary discovery and doorstep delivery for millions of consumers.
• In September 2025, Uber Technologies and ALDI announced a major partnership to integrate the grocery retailer’s inventory onto the Uber Eats marketplace. This collaboration brought more than 2,500 ALDI locations nationwide to the app, allowing customers to order fresh produce, organic meats, and household essentials for on-demand delivery. As part of the launch, the companies enabled SNAP-EBT payment acceptance across all participating stores, making ALDI the first retailer on the platform to offer this payment method nationwide immediately upon joining. The initiative was designed to combine the retailer's value-focused product selection with the delivery platform’s logistical speed and convenience.
• In June 2025, DoorDash significantly expanded its marketplace by establishing new partnerships with several prominent regional grocery and retail chains, including Big Y, Citarella, Gelson’s, and Gordon Food Service Store. This development increased the platform’s catalog to over 11 million grocery and retail items, catering to a diverse range of consumer needs from gourmet foods to bulk restaurant supplies. The collaboration allowed shoppers to access on-demand delivery from these trusted local merchants, further strengthening the company's foothold in the non-restaurant delivery sector. These new merchants were also made available through the platform’s membership program, offering reduced fees to loyal customers.

Key Market Players

• Tesco PLC
• Innovative Retail Concepts Private Limited
• AEON Co. Ltd.
• Amazon.com Inc.
• Blink Commerce Private Limited
• Alibaba.com
• Natures Basket Limited
• JD.com Inc.
• Maplebear Canada Inc.
• Reliance Retail Limited

By Type	By End User	By Region
Breakfast & Dairy Products Fresh Produce Snacks & Beverages Meat & Seafood Staples & Cooking Essentials Others	Individuals and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Online Grocery Delivery Services Market, By Type:

• Breakfast & Dairy Products
• Fresh Produce
• Snacks & Beverages
• Meat & Seafood
• Staples & Cooking Essentials
• Others

• Online Grocery Delivery Services Market, By End User:

• Individuals and Others

• Online Grocery Delivery Services 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