Global Online Grocery Market Overview
The global online grocery market is anticipated to grow from US$ 492.22 billion in 2023 to over US$ 2,984.27 billion by 2032, with an expected CAGR of 22.17% from 2024 to 2032, according to Renub Research.
Online grocery shopping involves buying food and household items through digital platforms, providing consumers with convenience, a broad product selection, and significant time savings. The industry has seen rapid growth and innovative trends, with companies enhancing their online delivery services to meet consumer demand. For example, in March 2023, Amazon teamed up with Rite Aid to offer 2-hour delivery for Prime members, providing cosmetics and grocery essentials.
Key Insights from the Online Grocery Market
- Over 26 million e-commerce websites exist globally, with more added daily.
- 87% of consumers use their mobile devices for online grocery shopping.
- 51% of young people would switch brands for flawless digital services.
- 72% of consumers prefer online grocery shopping due to convenience.
- In 2022, 87.2% of Americans aged 15 and older said they usually shop for groceries in person or online, with 19.3% having purchased groceries online in the last 30 days.
- A PWC report predicts that by 2050, online grocery shopping could account for between 35% and 50% of the market in countries like Germany, France, the UK, Turkey, and the Netherlands.
- In China, the percentage of people buying groceries online rose from 9% in 2018 to 19% in 2021, with a projected increase to over 30% by 2025.
- In India, e-retail customers are expected to reach 230-250 million by 2023, with an additional 100 million in the following three years. About one-third of Gen Z customers shop online, with 70% residing in Tier 2+ locations. Moreover, one-third of internet users come from low-income or lower-middle-income families.
Recent Mergers & Acquisitions in the Online Grocery Market
- Swiggy entered the retail food and grocery business by acquiring LYNK Logistics Ltd. in July 2023.
- Aldi purchased Winn-Dixie and Harveys Supermarket in 2023.
- L’Oreal acquired Aēsop in April 2023.
- Getir bought FreshDirect from Ahold Delhaize USA in 2023.
- Price Chopper acquired five former ShopRite locations in New York in 2023.
- PFSbrands purchased Moser’s Foods, a Mid-Missourian grocery store, in 2023.
- SpartanNash acquired Metcalfe’s Market, a three-store Wisconsin grocer, in April 2024.
- Kroger Co. and Albertsons Cos. announced their merger in October 2022, drawing concerns from lawmakers, national unions, and industry participants.
India Online Grocery Market
India is expected to have the second-largest global online consumer base by 2030, with 500-600 million online shoppers. This rapid growth is fueled by the expanding e-commerce sector, increasing smartphone internet penetration, and the convenience of online shopping. Online grocery stores are flourishing in Tier-II cities due to increasing incomes, urbanization, and limited real estate in urban areas. By 2025, 87% of Indian households are expected to have internet access, with mobile internet usage growing by 21% from 2019 to 2025.
- BigBasket raised $300 million from Alibaba in 2022, valuing the company at around $950 million.
Key Players in the Global Online Grocery Market
Leading companies in the online grocery market include Tesco Plc., Walmart Inc., Auchan SA, Kroger Co., Carrefour, Costco Wholesale Corporation, Koninklijke Ahold Delhaize N.V., and Target Corporation.
Recent Developments in the Online Grocery Market
- Stor.Ai and Mercatus Technologies merged in January 2024 to help independent and regional stores compete with larger grocers and offer e-commerce services.
- Ahold Delhaize USA sold FreshDirect to Getir in November 2023, aiming to focus on investments across all channels.
- As of October 2023, Kroger accepts EBT payments for digital pickup and shipping orders.
- Woolworths New Zealand launched the MILKRUN app in July 2023, offering over 10,000 supermarket goods.
- In January 2023, Sainsbury’s and Eat Takeaway partnered to provide faster grocery delivery.
These trends and developments reflect the dynamic and rapidly evolving nature of the global online grocery market, with companies continuously innovating to meet consumer demands and leverage new opportunities.
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Renub Research is a Market Research and Information Analysis company with more than 15 years of experience in Research, Survey, and Consulting. Our research helps companies to take business decisions: on strategy, organization, operations, technology, mergers & acquisitions, etc. Till now we have published more than 9000 syndicated reports and worked on more than 750 custom research projects. Currently, we are supplying data to EMIS, Bloomberg, Thomson Reuters, etc. We support many blue-chip companies by providing them with findings and perspectives across a wide range of markets.
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