Online Grocery Market Growth, Share, and Trends Report 2025-2033

Market Overview:

The online grocery market is experiencing rapid growth, driven by digital integration and smartphone ubiquity, increasing urbanization and lifestyle shifts, and sophisticated logistics and fulfillment models. According to IMARC Group's latest research publication, "Online Grocery Market Size, Share, Trends and Forecast by Product Type, Business Model, Platform, Purchase Type, and Region, 2025-2033", The global online grocery market size was valued at USD 710.10 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 6,590.92 Billion by 2033, exhibiting a CAGR of 28.09% from 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics

• Market Trends and Market Outlook

• Competitive Analysis

• Industry Segmentation

• Strategic Recommendations

Growth Factors in the Online Grocery Market

• Digital Integration and Smartphone Ubiquity

The widespread adoption of smartphones and high-speed internet is the fundamental backbone driving market expansion. Across regions like Asia Pacific, which accounts for over 58% of the global market share, this trend is particularly pronounced, fueled by a young, tech-savvy population and a mobile-first digital ecosystem. The integration of advanced e-commerce platforms and mobile applications offers users a highly convenient shopping experience with features such as one-touch payments, real-time inventory checks, and personalized recommendations. For instance, the app-based segment is experiencing rapid growth as consumers enjoy the ease of ordering groceries on the go. This accessibility, combined with the government emphasis on digital payment infrastructure, has fostered consumer trust and familiarity with online transactions, effectively dismantling initial barriers to online grocery adoption.

• Increasing Urbanization and Lifestyle Shifts

Rapid urbanization, coupled with the rising number of working professionals and dual-income households, has amplified the demand for convenient, time-saving solutions. Consumers in densely populated metropolitan areas face challenges like traffic congestion and busy schedules, making the convenience of doorstep delivery highly appealing. The global market, which was valued at approximately USD 710 billion in 2024, sees a significant boost from this demographic shift. Companies are responding by developing flexible delivery options, such as scheduled or express services, to fit varied urban lifestyles. This trend is not limited to large cities; the convenience factor appeals broadly to busy individuals and families seeking to reclaim time otherwise spent on physical shopping trips, thus underpinning sustained growth.

• Sophisticated Logistics and Fulfillment Models

Continuous advancements in supply chain management and last-mile delivery technology are crucial for overcoming the challenges of handling perishable goods and meeting rising customer expectations for speed. The efficiency of logistics is being revolutionized by innovations like dark stores—fulfillment centers strategically located in urban areas—and the deployment of micro-fulfillment centers within or near existing retail spaces. For example, fresh and perishable goods already command a substantial portion of the market, holding approximately 41% of the online grocery market share in 2024. Investments by major retailers, such as Amazon's focus on quick delivery networks, are further streamlining operations. The combination of AI for route optimization and predictive analytics for inventory management ensures faster, more reliable, and cost-effective deliveries, bolstering consumer confidence in product quality and freshness.

Key Trends in the Online Grocery Market

• The Rise of Quick Commerce and Instant Delivery

A significant emerging trend is the pivot toward "Quick Commerce" (Q-Commerce), characterized by delivery times as short as 15 to 30 minutes. This model is thriving in metropolitan areas where consumers prioritize immediacy for small, unplanned purchases, often supplementing their main grocery shops. Instant delivery is poised to become a major component of the market, with same-day services already accounting for over 52% of the online grocery market delivery model share. Businesses focusing on this trend, such as numerous startups and established players, are leveraging a network of small local warehouses or dark stores to ensure proximity to the customer base. This emphasis on speed and minimal order quantity is transforming the online grocery experience into a hyper-convenient alternative to traditional convenience stores.

• Integration of AI for Hyper-Personalization

Artificial intelligence (AI) is moving beyond simple recommendation engines to create deeply personalized shopping journeys that mirror and exceed the experience of a personal shopper. AI analyzes vast amounts of purchase history, dietary preferences, and real-time behavioral data to curate the entire platform experience, from tailored product suggestions to dynamic pricing and promotional offers. Companies using advanced technology have reportedly seen a noticeable increase in customer retention rates. This trend is further evolving with the integration of generative AI, which can create highly relevant content, improve in-app search functionality, and offer meal planning suggestions based on available inventory and past orders. This enhanced user experience fosters greater customer loyalty and increases basket size.

• Expansion of Health, Wellness, and Specialty Offerings

The growing global awareness of health, dietary restrictions, and ethical sourcing is driving a surge in the availability of specialty products online. Consumers are actively seeking organic, gluten-free, plant-based, and functional foods and beverages. Sales of organic groceries, for instance, are growing significantly and represent an increasing percentage of total grocery sales. Online platforms have a distinct advantage in offering a wider, more diverse assortment of niche and international products than physical stores. This allows retailers to cater to segmented consumer demands, with the segment for breakfast and dairy products, including plant-based alternatives, expected to experience substantial expansion. This trend positions online grocery as the preferred channel for consumers focused on specialized, health-conscious diets.

Leading Companies Operating in the Global Online Grocery Industry:

• Amazon.com, Inc.

• Carrefour

• Costco Wholesale Corporation

• Edeka Group

• HappyFresh

• Koninklijke Ahold Delhaize N.V.

• Reliance Retail Limited (Reliance Industries Limited)

• Safeway Inc. (Albertsons Companies, Inc.)

• Schwan’s Home Delivery

• ShopFoodEx

• Tesco PLC

• The Kroger Co.

• Walmart Inc.

• Wm Morrison Supermarkets Limited

Online Grocery Market Report Segmentation:

By Product Type:

• Vegetables and Fruits

• Dairy Products

• Staples and Cooking Essentials

• Snacks

• Meat and Seafood

• Others

Staples and Cooking Essentials lead the market with around 28.9% share in 2024, driven by universal demand and convenience for everyday cooking.

By Business Model:

• Pure Marketplace

• Hybrid Marketplace

• Others

Pure Marketplace dominates the market by connecting sellers and buyers without inventory ownership, allowing for a vast assortment of products and scalability.

By Platform:

• Web-Based

• App-Based

Web-Based platforms are key to the online grocery market, offering comprehensive product views and easy navigation for users who prefer larger displays for research.

By Purchase Type:

• One-Time

• Subscription

Subscription leads the market with around 58.0% share in 2024, providing convenience and automation for regularly used products through personalized experiences.

Regional Insights:

• North America (United States, Canada)

• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)

• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)

• Latin America (Brazil, Mexico, Others)

• Middle East and Africa

Asia Pacific accounts for the largest market share of over 58.3% in 2024, fueled by digital adoption, innovative e-commerce platforms, and the integration of online and traditional retail.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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