Online Grocery Market Size (By Product Type, By Delivery Type, By Platform, By Purchase Type, and By Geography) - Global Industry, Share, Analysis, Trends and Forecast 2025 - 2033

Online Grocery Market Highlights

• Global online grocery market revenue is poised to garner USD 585.7 Billion by 2033 with a CAGR of 24.9% from 2025 to 2033
• Asia-Pacific online grocery market value occupied around USD 47.2 billion in 2024
• North America online grocery market growth will record a CAGR of more than 26.5% from 2025 to 2033
• Among product type, the staple and cooking essentials sub-segment generated 28% of the market share in 2023
• Rising e-commerce platforms and online shopping apps become online grocery market’s trend that fuels the industry demand

An online grocery refers to the process of purchasing food and household items through internet-based platforms or applications, rather than visiting physical stores. This innovative approach to shopping has gained popularity in recent years due to its convenience, time-saving benefits, and wide range of product offerings. The online shopping contain diverse of applications. Firstly, it offers unparalleled convenience, allowing customers to shop for groceries from the comfort of their homes or by using smart phones. This convenience is particularly beneficial for individuals with busy schedules, or those living in remote areas with limited access to supermarkets. Moreover, online grocery platforms offer advanced options, making it easier for customers to find specific products, and read reviews before making a purchase. This enhances the overall shopping experience

Global Online Grocery Market Dynamics

Market Drivers

• Increasing internet penetration
• Availability of wide range of products online
• Several delivery options and time-saving process

Market Restraints

• Challenges related to maintain delivery operations
• Inability to touch and feel the product

Market Opportunities

• Technological advancements in delivery logistics
• Expansion of online market
• Rising subscription model

Online Grocery Market Report Coverage

Online Grocery Market Insights

The online grocery market is showcasing significant growth in the forecast year due to the increasing internet penetration worldwide. Internet penetration is highly spread worldwide due to its diverse applications such as home delivery options, time-saving processes, and a wider range of products. It’s an effortless shopping process for consumers mostly in the time of the pandemic. Additionally, online shopping offers a diverse range of delivery options which will automatically become an online grocery market’s driver in the coming years. For instance, next-day or same-day delivery options or instant and contactless delivery options are offered in the U.S for grocery shopping.

However, the inability to touch and feel the product restrains the growth of the online grocery market. There are some trust issues in online shopping for some consumers. Some consumers want to touch and feel the product to check its quality and durability, and there is a trust issue in the online payment process which leads to hampering the market growth. Moreover, challenges related to maintaining delivery operations hinder the growth of the market in the coming years. Meeting customers’ expectations over food quality, inability to handle order fulfillment and logistics operations, and difficulty to engage and retain customers. These types of challenges will take place at the time of delivery operations and significantly impede the market growth.

Technological advancements in delivery logistics become an online grocery market’s opportunity. As online shopping business spread over the world the key players focus on new innovations in delivery logistics for safe and quick deliveries. For instance, Walmart joined forces with four delivery firms in January 2019 to expand its online grocery delivery service. Point Pickup, Roadie, AxleHire, and Skipcart were enlisted to bolster online grocery deliveries in urban areas across four states. This strategic partnership was part of Walmart's broader initiative to reach more customers in multiple regions. Furthermore, rising subscription models and expansion of online market further creates an opportunity for the online grocery market in the forecasted year.

Online Grocery Market Segmentation

The worldwide market for online grocery is split based on product type, delivery type, platform, purchase type, and geography.

Online Grocery Market By Product Type

• Fresh Produce
• Staple and Cooking Essentials
• RTE Food
• Snacks and Beverages
• Bakery and Confectionery
• Dairy Products
• Breakfast and Cereal
• Household and Cleaning Products
• Beauty and Personal Care
• Baby Food and Care
• Pet Food and Care

According to online grocery industry analysis, staple, and cooking essentials product type dominated the online grocery market. Nowadays, cooking essentials including food grains, oil, staples, and flour become necessary in households. These ingredients are becoming universal need in everyday cooking. The online platform offers a wide range of options to purchase these essentials in bulk quantities. Additionally, the staple and cooking segment further includes dietary products which also raise the demand for this segment from numerous customers. As a result, this segment is experiencing significant growth in the coming years due to its daily use and consumption.

Online Grocery Market By Delivery Type

• Instant Delivery
• Schedule Delivery

According to online grocery market forecast, schedule delivery is expected to dominate the online grocery market. Consumers prefer schedule deliveries to reduce waiting times, accomodating busy schedules and as per their convinience time slots. Additionally, instant delivery type showcasing significant growth in the coming years due to swift and on demand service for grocery shopping.

Online Grocery Market By Platform

• Web-Based
• App-Based

According to online grocery market forecast, app-based segment is ancipated to dominate the online grocery market in the forecast future. App-based segment includes numerous applications for shopping experince. These applications require the constomer to download in smartphone, laptops, and tablets. This segment is increasing its portfolio due to its speed and repeat purchase. App-based platform provide quickly reorder the favourite item, recommendations and notifications on any discounts and offers. As a result, users can utilize location service for efficient delivery of products from smartphone which leads to substantial growth of app-based segment in the coming years. Moreover, web-based platform involve accesss through internet on diverse devices like laptops, computers and smartphones. This platform offers complete description of product and navigation.

Online Grocery Purchase Type

• One-Time
• Subscription

According to the online grocery industry forecast, the one-time segment is experiencing noteworthy growth. This segment involves individual purchasing options. The one-time purchase type offers flexibility for customers to purchase on specific occasions or instant needs. This purchase type is suitable for those customers who purchase the grocery irregularly or infrequently. Additionally, the subscription purchase type has seen substantial growth due to the rising purchase of repeatedly used products or staple items. In this purchase type people have to subscribe monthly or weekly for a convenient shopping experience.

Online Grocery Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Online Grocery Market Regional Analysis

Asia-Pacific dominates the market due to the expansion of the online shopping market in this region. Firstly, the growing internet penetration and rising number of smartphone users further boost the demand for the online grocery market in this region. The growing infrastructure and utilization of online apps for shopping, in countries like China, India, South Korea, Australia, and Japan stands as a key factor for the substantial growth of this region in the market. Furthermore, technological advancement by key manufacturers to raise the market in the Asia-Pacific region further maintains its position in the market. For instance, Amazon streamlined its grocery offerings in November 2021, merging Fresh and Pantry into a single entity called Amazon Fresh. Now available in over 300 Indian cities, this unified store offers convenient delivery services, great savings, online shopping, and a numerous collection of products.

In terms of regional segments, North America is the fastest-growing region in the online grocery shopping market due to the growing adoption of online models and the presence of established retailers. Countries like the U.S., Canada, and Mexico have the presence of strong key players due to their technological advancement in delivery logistics this region maintain its dominance in the online grocery market. For instance, Instacart introduced "The Instacart Platform" in March 2022, a collection of advanced technologies modified for the grocery sector. Their goal is to transform the industry by providing retailers with powerful tools while improving the shopping experience for consumers. Additionally, people in this region preferred the online shopping option for groceries due to their busy schedules. Online grocery shopping offers a wide range of products and several delivery options which will become a preferred choice for customers due to flexibility. As a result, due to the presence of e-commerce players, widespread adoption of smartphones and increasing internet penetration North America is at on forefront in the online grocery market.

Online Grocery Market Players

Some of the top online grocery companies offered in our report include Wm Morrison Supermarkets Limited, Amazon.com, Inc., Walmart Inc., Carrefour, The Kroger Co., Costco Wholesale Corporation, Tesco PLC, Edeka Group, ShopFoodEx, HappyFresh, Schwan’s Home Delivery, Koninklijke Ahold Delhaize N.V., Safeway Inc. (Albertsons Companies, Inc.), and Reliance Retail Limited (Reliance Industries Limited).