Online Grocery Market Overview
The global Online Grocery Market
is projected to reach US$ 887.7 Billion by 2035 from US$ 561.3 Billion in 2025.
The market is expected to register a CAGR of 22.1% during 2025–2035. This
surge is driven by increasing consumer preference for convenience, faster home
deliveries, and a wider selection of products. Additionally, digital
transformation and evolving shopping behaviors are accelerating the shift
toward online grocery platforms. The market's rapid growth underscores how
technology and changing retail dynamics are revolutionizing the way consumers
purchase essentials.
The online grocery market has
undergone a remarkable transformation, evolving from a specialized service into
a dominant retail channel, fundamentally altering consumer purchasing behaviors
worldwide. This shift has been propelled by rapid advancements in e-commerce
infrastructure, ubiquitous internet connectivity, and the proliferation of
smartphone technology, which together have created an ecosystem conducive to
digital grocery shopping. Consumers are increasingly gravitating toward online
platforms due to their unparalleled convenience, significant time savings, and
the ability to access tailored shopping experiences through algorithmic
recommendations and exclusive subscription benefits. The COVID-19 pandemic
served as a pivotal accelerator for this transition, not only driving
unprecedented adoption rates but also establishing enduring changes in
consumption patterns that continue to shape the market landscape.
Online Grocery Market Drivers and Opportunities
Rising consumer demand for
convenience and time-saving solutions is anticipated to lift the online grocery
market during the forecast period
Growing consumer need for convenience and
time-efficient solutions drives the expansion of the global online grocery
market. Busy city dwellers and consumers in general have increasingly busy
lifestyles and would prefer time- and effort-minimizing modes of shopping.
Online grocery websites provide the mobility of shopping anywhere and anytime
without the necessity of time-consuming visits to bricks-and-mortar stores.
Moreover, features like scheduled delivery, simple comparison of products,
membership-based model offering periodic access over a period of time, and
express ordering further make the experience convenient.
The COVID-19 outbreak
strengthened the tide for this as social distancing and lockdowns turned the
experience of online shopping of groceries from a preference into necessity.
Numerous consumers who adopted the platforms during the outbreak have continued
using the platforms even after the pandemic due to the seamless and smooth
experience provided by them. Also, developments such as one-click purchasing,
smart shopping baskets offering personalized recommendations, and intelligent
voice assistants are increasingly making the experience of online shopping for
groceries accessible and convenient. Such strong consumer affinity for
convenience shall keep on driving the expansion of the market for online
groceries over the forecast period.
Expansion of digital payment
systems and internet penetration is a vital driver for influencing the growth
of the global online grocery market
The rapid development of
digital payment platforms and rising global penetration of the internet have
contributed significantly towards the expansion of the online grocery market.
Consumers across both the advanced and developing world have ubiquitous access
to smartphones, low-cost mobile internet connectivity, and dependable digital
means of payment. Digital payment platforms like digital wallets, UPI (Unified
Payments Interface) platforms, and instant payment platforms have made the
process of making transactions easier, quicker, and more secure. The digital
revolution is most vital for the grocery industry as quicker and automated
checkouts facilitate improved customer experience and resultant repeat buys.
Also, most e-commerce sites provide reward points, cashback, and discounts for
digital transactions, thus promoting purchases made through digital means.
The growing
level of trust towards making digital payments and government initiatives
towards the development of a cashless economy have contributed towards making
the habit of online grocery shopping popular. The advent of biometric
authentication of payments and security of payments through blockchain
technology ensures that the global online grocery market will have a
strengthened outlook towards accelerated growth across geographies where a
digital infrastructure bottleneck previously existed.
Integration of artificial
intelligence and machine learning is poised to create significant opportunities
in the global online grocery market
The convergence of
artificial intelligence (AI) and machine learning (ML) technologies presents a
breakthrough for the online grocery industry. These technologies provide
bespoke shopping experiences through intelligent suggestions, predictive
analysis, and price dynamics. AI-based virtual assistants and chatbots improve
customer support by offering round-the-clock support and answering questions
expeditiously. Machine learning-based models can monitor consumer activity to
make accurate forecasting of the demand and optimize the management of stock
and wastage reduction, resulting in enhanced operational effectiveness and cost
saving. Additionally, AI-based automation of logistics — such as route planning
for delivery and automated warehouse management — drives improved speed and
accuracy of order fulfillment. With heightened competition, businesses that
invest in AI and ML will gain a significant advantage by providing intelligent,
entertaining, and effective shopping experiences. The technology upsurge is likely
to revolutionize customer expectation and drive expansion throughout the online
grocery industry.
Online Grocery Market Scope
Report
Attributes |
Description |
Market Size in 2025 |
USD 561.3 Billion |
Market
Forecast in 2035 |
USD 887.7
Billion |
CAGR % 2025-2035 |
22.1% |
Base
Year |
2024 |
Historic Data |
2020-2024 |
Forecast
Period |
2025-2035 |
Report USP
|
Production, Consumption, company
share, company heatmap, company production capacity, growth factors and more |
Segments
Covered |
|
Regional Scope |
|
Country
Scope |
|
Online Grocery Market Report Segmentation Analysis
The Global Online Grocery Market industry
analysis is segmented into by Product Type, by Platform, by End User and by
Region.
The staples & cooking essentials segment
is anticipated to hold the highest share of the global online grocery market
during the projected timeframe
The online grocery market is segmented by product type into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, and Others, with the Staples & Cooking Essentials category expected to dominate market with 31.5% share during the forecast period. This segment's leadership stems from the universal demand for basic food commodities such as rice, grains, cooking oils, flour, and spices fundamental components of daily diets across cultures. The convenience-driven shift toward digital platforms for these essentials is reinforced by several key advantages: easy price comparison across vendors, access to volume-based discounts, guaranteed product availability, and reliable delivery schedules. Online grocers further enhance their value proposition through subscription models that automate replenishment of pantry staples, saving consumers both time and money while ensuring household food security.
The mobile app-based ordering segment is anticipated to hold the
highest share of the market over the forecast period
By platform, the market is
categorized into Mobile App-Based Ordering and Website-Based Ordering. The
Mobile App-Based Ordering segment is anticipated to dominate the market over
the forecast period. This growth is largely driven by the widespread penetration
of smartphones and affordable mobile internet access across the globe. Mobile
apps offer users a personalized, intuitive, and seamless shopping experience,
complete with real-time updates, digital payments, push notifications for
offers, and subscription services.
The individual consumers segment dominated the market in 2024 and is
predicted to grow at the highest CAGR over the forecast period
By end user, the market includes
Individual Consumers and Commercial Buyers. The Individual Consumers segment
held the largest market share in 2024 and is expected to grow at the highest
CAGR during the forecasting period. Home delivery convenience, personalized
shopping experiences, time benefits of saving time, and a wider variety of
product availability are the most significant factors for the application of
online grocery shopping among individual consumers. The lifestyle shift,
increased preference for digital transactions, and habituation following the
pandemic have strengthened the preference for digital-based grocery platforms
among individuals. Therefore, this segment is expected to grow positively and
steadily going forward.
The following segments are part of an in-depth analysis of the global online
grocery market:
Market
Segments |
|
Product Type |
|
By Platform |
|
By End User |
|
Online Grocery Market
Share Analysis by Region
Asia Pacific is projected to hold the largest share of the global online
grocery market over the forecast period
The Asia
Pacific region will lead the Global Online Grocery Market and hold 45.5% of the
market share during the projected period. The region's lead is fuelled by the
tremendous urbanization, rising disposable incomes, and the growing preference
towards online retailing across the key countries such as China, India, Japan,
and Southeast Asian countries. With the advancements of e-commerce
infrastructure and improved penetration of smartphones and the internet, the
ease of buying groceries over the internet has increased and gained popularity
within the region. Busy lifestyle and the need for convenience have influenced
the consumers within the Asia Pacific region to adopt the medium of the web for
exchange of value for the purposes of buying groceries. Additionally, the
retail operators are adopting individualized experiences, price
competitiveness, and quick delivery as the key drivers of the regional market.
North
America is also growing at a strong pace, projected to have the highest CAGR of
the market worldwide. It's due to the growing inclination towards digital
solutions by millennials and tech-conscious consumers for time and
convenience-oriented choices. Additionally, the movement towards innovative
delivery models like the same-day delivery and subscription models are key
drivers of this expansion. The number of retail alliances and the expansion of
e-commerce behemoths within North America keep powering the growth of the
online grocery market and make North America a very lucrative region for the
sales of online groceries in the future.
Online Grocery Market Competition Landscape Analysis
Global Online Grocery Market is
marked by robust competition among key players focusing on innovation,
strategic expansion, and sustainability. Continuous research and development
efforts lead to the introduction of advanced Online Grocery platforms with
improved performance characteristics, catering to evolving industry demands.
Global Online Grocery
Market Recent Developments News:
In September 2024, Amazon Fresh is
rolling out enhanced savings for Prime members, offering exclusive discounts on
over 3,000 essential grocery items. The new deals are designed to help members
stretch their budgets further while shopping for everyday necessities, reinforcing
Amazon's commitment to delivering value in the competitive grocery market. By
expanding these member-only savings, Amazon Fresh aims to strengthen customer
loyalty and attract more shoppers to its platform, positioning itself as a cost-effective
alternative to traditional grocery retailers.
In March 2022, Instacart has unveiled
"The Instacart Platform," a comprehensive suite of enterprise-level
technologies poised to transform the grocery retail sector. This cutting-edge
solution equips retailers with advanced tools to optimize operations while delivering
a seamless, personalized shopping experience for consumers across multiple
channels.
The Global Online Grocery Market
is dominated by a few large companies, such as
·
Alibaba.com.
·
Amazon.com, Inc.
·
Blink Commerce Private Limited
·
Instacart
·
JD.com, Inc.
·
Natures Basket Limited.
·
Ebates Performance Marketing Inc.d/b/a Rakuten
Rewards
·
Reliance Retail.
·
Supermarket Grocery Supplies Pvt. Ltd.
·
Target Brands, Inc.
·
Tesco.com
·
The Kroger Co.
·
Walmar
·
AEON CO., LTD.Others
1.
Global
Online Grocery Market Introduction and Market Overview
1.1. Objectives of the Study
1.2. Global Online Grocery Market
Scope and Market Estimation
1.2.1. Global Online Grocery Overall
Market Size (US$ Bn), Market CAGR (%), Market forecast (2025 - 2035)
1.2.2. Global Online Grocery Market
Revenue Share (%) and Growth Rate (Y-o-Y) from 2020 - 2035
1.3. Market Segmentation
1.3.1. Product Type of Global Online
Grocery Market
1.3.2. Platform of Global Online
Grocery Market
1.3.3. End-user of Global Online
Grocery Market
1.3.4. Region of Global Online Grocery
Market
2.
Executive Summary
2.1. Demand Side Trends
2.2. Key Market Trends
2.3. Market Demand (US$ Bn) Analysis
2020 – 2024 and Forecast, 2025 – 2035
2.4. Demand and Opportunity
Assessment
2.5. Market Dynamics
2.5.1. Drivers
2.5.2. Limitations
2.5.3. Opportunities
2.5.4. Impact Analysis of Drivers and
Restraints
2.6. Key Product/Brand Analysis
2.7. Technological Advancements
2.8. Key Developments
2.9. Porter’s Five Forces Analysis
2.9.1. Bargaining Power of Suppliers
2.9.2. Bargaining Power of Buyers
2.9.3. Threat of Substitutes
2.9.4. Threat of New Entrants
2.9.5. Competitive Rivalry
2.10. PEST Analysis
2.10.1. Political Factors
2.10.2. Economic Factors
2.10.3. Social Factors
2.10.4. Technology Factors
2.11. Pricing analysis of Online
Grocery Platform
2.12. Key Regulation
3.
Global Online Grocery Market Estimates & Historical Trend Analysis (2020 - 2024)
4.
Global Online Grocery Market Estimates & Forecast Trend Analysis, by
Product Type
4.1. Global Online Grocery Market
Revenue (US$ Bn) Estimates and Forecasts, by Product Type, 2020 - 2035
4.1.1. Fresh produce
4.1.2. Breakfast & dairy
4.1.3. Snacks & beverages
4.1.4. Meat & seafood
4.1.5. Staples & cooking essentials
4.1.6. Others
5.
Global Online Grocery Market Estimates & Forecast Trend Analysis, by
Platform
5.1. Global Online Grocery Market
Revenue (US$ Bn) Estimates and Forecasts, by Platform, 2020 - 2035
5.1.1. Mobile App-Based Ordering
5.1.2. Website-Based Ordering
6.
Global Online Grocery Market Estimates & Forecast Trend Analysis, by
End-user
6.1. Global Online Grocery Market
Revenue (US$ Bn) Estimates and Forecasts, by End-user, 2020 - 2035
6.1.1. Individual Consumers
6.1.2. Commercial Buyers
7.
Global Online Grocery Market Estimates & Forecast Trend Analysis,
by Region
7.1. Global Online Grocery Market
Revenue (US$ Bn) Estimates and Forecasts, by Region, 2020 - 2035
7.1.1. North America
7.1.2. Europe
7.1.3. Asia Pacific
7.1.4. Middle East & Africa
7.1.5. Latin America
8.
North
America Online Grocery Market: Estimates & Forecast Trend Analysis
8.1.
North
America Online Grocery Market Assessments & Key Findings
8.1.1. North America Online Grocery
Market Introduction
8.1.2. North America Online Grocery
Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
8.1.2.1. By Product Type
8.1.2.2. By Platform
8.1.2.3. By End-user
8.1.2.4. By Country
8.1.2.4.1. The U.S.
8.1.2.4.2. Canada
8.1.2.4.3. Mexico
9.
Western
Europe Online Grocery Market: Estimates & Forecast Trend Analysis
9.1. Western Europe Online Grocery
Market Assessments & Key Findings
9.1.1. Western Europe Online Grocery
Market Introduction
9.1.2. Western Europe Online Grocery
Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
9.1.2.1. By Product Type
9.1.2.2. By Platform
9.1.2.3. By End-user
9.1.2.4.
By
Country
9.1.2.4.1.
Germany
9.1.2.4.2.
Italy
9.1.2.4.3.
U.K.
9.1.2.4.4.
France
9.1.2.4.5.
Spain
9.1.2.4.6.
Benelux
9.1.2.4.7.
Nordics
9.1.2.4.8. Rest
of W. Europe
10. Eastern Europe Online
Grocery Market: Estimates &
Forecast Trend Analysis
10.1. Eastern Europe Online Grocery
Market Assessments & Key Findings
10.1.1. Eastern Europe Online Grocery
Market Introduction
10.1.2. Eastern Europe Online Grocery
Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
10.1.2.1. By Product Type
10.1.2.2. By Platform
10.1.2.3. By End-user
10.1.2.4. By Country
10.1.2.4.1.
Russia
10.1.2.4.2.
Hungary
10.1.2.4.3.
Poland
10.1.2.4.4.
Balkan & Baltics
10.1.2.4.5. Rest of E. Europe
11. Asia Pacific Online
Grocery Market: Estimates &
Forecast Trend Analysis
11.1. Asia Pacific Market Assessments
& Key Findings
11.1.1. Asia Pacific Online Grocery
Market Introduction
11.1.2. Asia Pacific Online Grocery
Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
11.1.2.1. By Product Type
11.1.2.2. By Platform
11.1.2.3. By End-user
11.1.2.4. By Country
11.1.2.4.1. China
11.1.2.4.2. Japan
11.1.2.4.3. India
11.1.2.4.4. Australia & New Zealand
11.1.2.4.5. South Korea
11.1.2.4.6. ASEAN
11.1.2.4.7. Rest of Asia Pacific
12. Middle East & Africa Online
Grocery Market: Estimates &
Forecast Trend Analysis
12.1. Middle East & Africa Market
Assessments & Key Findings
12.1.1. Middle
East & Africa Online
Grocery Market Introduction
12.1.2. Middle
East & Africa Online
Grocery Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
12.1.2.1. By Product Type
12.1.2.2. By Platform
12.1.2.3. By End-user
12.1.2.4. By Country
12.1.2.4.1. UAE
12.1.2.4.2. Saudi
Arabia
12.1.2.4.3. Turkey
12.1.2.4.4. South
Africa
12.1.2.4.5. Rest of
MEA
13. Latin America
Online Grocery Market: Estimates &
Forecast Trend Analysis
13.1. Latin America Market Assessments
& Key Findings
13.1.1. Latin America Online Grocery
Market Introduction
13.1.2. Latin America Online Grocery
Market Size Estimates and Forecast (US$ Billion) (2020 - 2035)
13.1.2.1. By Product Type
13.1.2.2. By Platform
13.1.2.3. By End-user
13.1.2.4. By Country
13.1.2.4.1. Brazil
13.1.2.4.2. Argentina
13.1.2.4.3. Colombia
13.1.2.4.4. Rest of
LATAM
14. Country Wise Market:
Introduction
15. Competition Landscape
15.1. Global Online Grocery Market Product
Mapping
15.2. Global Online Grocery Market
Concentration Analysis, by Leading Players / Innovators / Emerging Players /
New Entrants
15.3. Global Online Grocery Market Tier
Structure Analysis
15.4. Global Online Grocery Market
Concentration & Company Market Shares (%) Analysis, 2024
16. Company Profiles
16.1.
Alibaba.com.
16.1.1. Company Overview & Key Stats
16.1.2. Financial Performance & KPIs
16.1.3. Product Portfolio
16.1.4. SWOT Analysis
16.1.5. Business Strategy & Recent
Developments
* Similar details would be provided
for all the players mentioned below
16.2. Amazon.com,
Inc.
16.3. Blink Commerce
Private Limited
16.4. Instacart
16.5. JD.com, Inc.
16.6. Natures Basket
Limited.
16.7. Ebates
Performance Marketing Inc.d/b/a Rakuten Rewards
16.8. Reliance
Retail.
16.9. Supermarket
Grocery Supplies Pvt. Ltd.
16.10. Target Brands,
Inc.
16.11. Tesco.com
16.12. The Kroger Co.
16.13. Walmar
16.14. AEON CO., LTD.
16.15. Others
17. Research
Methodology
17.1. External Transportations /
Databases
17.2. Internal Proprietary Database
17.3. Primary Research
17.4. Secondary Research
17.5. Assumptions
17.6. Limitations
17.7. Report FAQs
18. Research
Findings & Conclusion
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Online Grocery Market was valued at USD 561.3 Billion in 2025.
Online Grocery Market size will increase at approximate CAGR of 22.1% during the forecasted period.
Major companies operating within the market are Alibaba.com., Amazon.com, Inc., Blink Commerce Private Limited, Instacart, JD.com, Inc., and others.
Asia Pacific dominates the market with an active share of 45.5%.
Only Three Thousand Four Hundred Ninety Nine US dollar
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