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.

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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

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:

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