Market Overview:
The online grocery market is experiencing rapid growth, driven by convenience and time-saving, technological advancements and digital integration, and rising consumer demand and government support. 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
- Convenience and Time-Saving
One of the biggest drivers of growth in the global online grocery industry is the convenience it offers busy consumers. The rise of smartphones and improved internet connectivity has allowed people to shop for groceries anytime and anywhere, saving them time spent traveling to and queuing in physical stores. Features such as flexible delivery slots, subscription models, and real-time inventory visibility enhance the shopping experience, encouraging repeat purchases. For example, in the U.S., June 2025 online grocery sales hit $9.8 billion, up 27.27% from the previous year, driven by increased demand for home delivery and quick pickup options. Companies like Amazon have introduced subscription plans for unlimited grocery deliveries, catering to convenience-seeking customers. This shift is especially prominent in urban areas where busy lifestyles and traffic congestion make online shopping a preferred choice.
- Technological Advancements and Digital Integration
Technological innovation is another major growth factor. The integration of AI, machine learning, voice assistants, and mobile apps has transformed grocery shopping into a more seamless, personalized experience. Retailers invest heavily in last-mile delivery infrastructure, boosting speed and reliability. Advanced payment gateways and user-friendly interfaces foster trust and engagement. Notable developments include new business models like on-demand and subscription grocery delivery which make shopping more accessible and affordable. Leading grocery players are expanding their digital services; for instance, Instacart's recent partnerships with wholesalers allow it to broaden its market reach. This digital transformation is supported by government initiatives promoting tech-driven e-commerce, further accelerating adoption.
- Rising Consumer Demand and Government Support
Consumer behavior is shifting due to rising disposable incomes, urbanization, and health-conscious trends, fueling the demand for specialty groceries, organic products, and diverse assortments accessible online. Also, governments worldwide are promoting e-commerce growth through supportive programs. For example, India’s Startup India initiative encourages women entrepreneurs and startups to enter online retail by providing tax benefits, incubation support, and market access via government e-marketplaces. Such schemes create a conducive environment for innovation and expansion in the online grocery space. Additionally, many governments are investing in digital infrastructure to increase internet penetration, especially in rural and semi-urban areas, further expanding the potential customer base.
Key Trends in the Online Grocery Market
- Rapid and Flexible Delivery Options
A prominent trend shaping the global online grocery market is the demand for faster and more flexible delivery services. Consumers increasingly expect deliveries within hours or same-day services, pushing retailers to innovate logistics operations. Many grocery chains are partnering with delivery apps like UberEats or Just Eat to fulfill this demand quickly. For instance, Tesco in the UK and Carrefour in France have launched their own rapid delivery services to stay competitive. Additionally, 'direct-to-fridge' delivery, pioneered by Walmart in the U.S., allows groceries to be placed securely inside customers' homes, offering unprecedented convenience. These innovations are not only improving customer satisfaction but also enhancing companies’ sustainability goals by reducing delivery-related inefficiencies.
- Sustainability and Eco-Friendly Practices
Sustainability is gaining importance among both shoppers and retailers in the online grocery space. Customers are becoming more environmentally conscious, favoring grocers that offer eco-friendly packaging, carbon-neutral delivery, and transparent sourcing. To meet this demand, companies are investing in micro-fulfillment centers and dark stores optimized for efficient, low-emission delivery in urban areas. Examples include Co-op's robot delivery service in the UK, which uses electric robots powered by zero-carbon electricity. This trend also aligns with regulatory encouragement for digital transformation that includes sustainable practices, making sustainability a competitive differentiator in the online grocery market.
- Adoption of Robotics and Autonomous Delivery
Another exciting trend is the emergence of robotics, drones, and driverless delivery vehicles in grocery logistics. Retailers worldwide are testing autonomous technologies to reduce delivery times and costs while improving customer experience. Co-op’s robot delivery in the UK, drone-based initiatives in the U.S., and experiments with driverless electric vehicles are paving the way for automated, contactless deliveries. These technologies not only cater to consumer preferences for convenience and speed but also contribute to sustainability by using electric power sources. As this technology matures, retailers that innovate here can gain a significant edge in the competitive online grocery market.
The online grocery market report provides a comprehensive overview of the industry. This analysis is essential for stakeholders aiming to navigate the complexities of the biochar market and capitalize on emerging opportunities.
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 exhibit a clear dominance in the market due to their consistent demand and necessity in daily household consumption.
By Business Model:
- Pure Marketplace
- Hybrid Marketplace
- Others
Pure marketplace represents the largest segment, as it offers a wide variety of products from multiple sellers, providing buyers with more options and competitive pricing.
By Platform:
- Web-Based
- App-Based
Based on the platform, the market has been bifurcated into web-based and app-based.
By Purchase Type:
- One-Time
- Subscription
On the basis of the purchase type, the market has been classified into one-time and subscription.
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
North America dominates the market owing to its high internet penetration, growing preference for online shopping, and well-established e-commerce infrastructure.
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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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