Supermarkets and grocery stores have significantly transformed in recent years, driven by technological advancements and shifting consumer preferences. E-commerce has become a cornerstone of the industry, with over 70.0% of grocery retailers integrating online ordering and fulfillment into their operations in 2025. This shift has been fueled by consumer demand for convenience and efficient shopping experiences, prompting retailers to invest heavily in curbside pickup and home delivery services. Major players like Kroger have leveraged these innovations to maintain a competitive edge, while third-party delivery platforms like Instacart have enabled smaller grocers to compete with larger chains. The adoption of "dark stores" and AI-driven technologies has further optimized operations but heightened competition has limited revenue expansion. Over the past five years, revenue has been slipping at a CAGR of 0.1%, reversing course in 2025 to climb 1.1%, reaching $883.1 million. Over the past five years, the industry has faced rising labor costs and competition from discount grocers and private-label products. Automation has played a crucial role in managing these pressures, with more than 50.0% of transactions in major chains processed through self-checkout systems in 2025. Despite these advancements, wages have continued to rise, accounting for an estimated 10.7% of revenue. This has led retailers to focus on strategic pricing and the promotion of high-margin private-label products to sustain profit. The proliferation of discount grocers like Aldi and Lidl has intensified competition, forcing traditional supermarkets to innovate and adapt to retain market share. Looking ahead, supermarkets and grocery stores are likely to endure steady but marginal revenue growth over the next five years, influenced by economic and demographic factors. Increases in per capita disposable income and consumer spending suggest a stable economic environment that could bolster sales of premium and specialty grocery items. However, declines in the agricultural price index may pressure revenue growth, as lower prices could reduce sales value. Urban population growth will continue to drive demand for grocery products, encouraging retailers to adopt urban-centric strategies. Upcoming FDA regulations on product labeling and ongoing geopolitical tensions will present challenges and opportunities for the industry. Retailers that can navigate these complexities and align with evolving consumer preferences, such as the rise of functional foods and the "quiet luxury" trend, will be well-positioned to thrive in a rapidly changing market landscape. Revenue is anticipated to expand marginally over the next five years at a CAGR of less than 0.1%, totaling $883.3 million in 2030.

AI-Driven Grocery Demand Planning Market Outlook

According to our latest research, the AI-Driven Grocery Demand Planning market size reached USD 2.15 billion in 2024, reflecting a robust adoption of artificial intelligence solutions across the global grocery sector. The market is projected to expand at a CAGR of 24.6% between 2025 and 2033, and is expected to achieve a value of USD 17.6 billion by 2033. The primary growth factor driving this remarkable expansion is the increasing necessity for precise inventory management and demand forecasting as grocery retailers strive to reduce waste, optimize supply chains, and meet evolving consumer expectations in a dynamic retail environment.

The growth of the AI-Driven Grocery Demand Planning market is fueled by several key factors, with the most significant being the rapid digital transformation within the grocery industry. The proliferation of e-commerce platforms and omnichannel retailing has radically altered the way consumers interact with grocery stores, leading to more complex and unpredictable demand patterns. AI-powered solutions are increasingly being leveraged to analyze vast datasets in real-time, enabling retailers to anticipate shifts in consumer preferences, respond swiftly to supply chain disruptions, and minimize stockouts or overstock situations. The integration of AI not only enhances operational efficiency but also supports sustainability initiatives by reducing food waste and optimizing resource allocation.

Another critical growth driver is the growing pressure on grocery retailers to deliver superior customer experiences while maintaining profitability. In today's highly competitive landscape, consumers expect product availability, personalized promotions, and seamless shopping experiences across all channels. AI-driven demand planning tools empower retailers to fine-tune pricing strategies, forecast demand with higher accuracy, and automate replenishment processes. This leads to improved shelf availability, reduced markdowns, and increased customer loyalty. The ability of AI to process and interpret complex variables—such as weather patterns, local events, and social media trends—further strengthens its value proposition for grocery retailers seeking to stay ahead of the competition.

Furthermore, the ongoing advancements in machine learning algorithms and data analytics are making AI-driven solutions more accessible and cost-effective for a broader range of grocery businesses, including small and medium enterprises. Cloud-based deployment models, in particular, have lowered barriers to entry by providing scalable, flexible, and affordable options for retailers of all sizes. As regulatory requirements for food safety and traceability become more stringent, AI-driven platforms are also being adopted to ensure compliance and enhance transparency across the supply chain. These factors collectively contribute to the sustained growth and widespread adoption of AI-driven grocery demand planning solutions.

From a regional perspective, North America currently dominates the AI-Driven Grocery Demand Planning market, accounting for the largest revenue share in 2024. This leadership position is attributed to the region's advanced retail infrastructure, high adoption rate of digital technologies, and the presence of major technology providers. Europe follows closely, driven by strong regulatory frameworks and a focus on sustainability. The Asia Pacific region is emerging as the fastest-growing market, propelled by rapid urbanization, expanding middle-class populations, and increasing investments in digital transformation by grocery retailers. Latin America and the Middle East & Africa are also witnessing gradual growth as awareness of AI benefits spreads and infrastructural improvements are made.

Component Analysis

The AI-Driven Grocery Demand Planning market is segmented by component into software and services, each playing a pivotal role in the broader adoption of AI technologies within the grocery sector. The software segment encompasses a range of AI-powered platforms designed for demand forecasting, inventory optimization, and supply chain management. These platforms leverage advanced algorithms and machine learning models to process historical sales data, real-time inventory levels, and external factors such as weather or local events, providing actionable insights that drive efficient decision-making. The continuous innovation in software solutions

The India online grocery market is estimated to be valued at USD 3.7 billion in 2025 and is projected to reach USD 7.8 billion by 2035, registering a CAGR of 7.8% over the forecast period. The market is projected to add an absolute dollar opportunity of USD 4.1 billion during 2025 to 2035.

Metric	Value
Industry Size (2025E)	USD 3.7 billion
Industry Value (2035F)	USD 7.8 billion
CAGR (2025 to 2035)	7.8%

Online grocery sales have surged as online shopping has shot up. The surge in the popularity of online shopping, along with an increase in per capita disposable income and consumer spending, contributed to significant revenue growth for the industry. Overall, industry revenue will climb at a CAGR of 16.3% over the five years to 2024 to reach an estimated $43.3 billion in 2024, including expected growth of 4.3% in 2024. Over the past five years, strengthening incomes and climbing food prices have benefited online grocery sales. Sensing heightened demand for internet-based delivery services, major companies like Amazon and Walmart have scaled up their industry-relevant operations and captured much of this rising demand. Meanwhile, a new group of highly focused online grocers, including Door-to-Door Organics, have targeted niche markets across the United States by selling organic and other specialty groceries online. Moving forward, online grocery services will continue to enjoy revenue growth through the end of 2029, though at a muted pace when compared to the previous five years. Competition from brick-and-mortar grocery stores will continue to pressure the industry as many consumers prefer to shop for groceries, specifically produce, in person to assess the quality. Online grocers will invest in advanced technology to attempt to strengthen operational efficiency and reduce consumer hesitations. The use of drones for delivery and virtual reality will be key trends over the next five years. Price competitiveness will also climb, contributing to declining profit. Over the five years to 2029, industry revenue will expand at a CAGR of 3.5% to reach an estimated $51.5 billion in 2029.

The global Grocery Inventory Management System market is poised for substantial growth, projected to reach an estimated market size of USD 4,500 million by 2025, with a Compound Annual Growth Rate (CAGR) of 12.5% through 2033. This robust expansion is primarily fueled by the escalating need for enhanced operational efficiency and reduced wastage within the highly competitive grocery retail sector. Supermarkets and hypermarkets, facing shrinking profit margins and increasing consumer demand for fresh, readily available products, are actively adopting advanced inventory management solutions. These systems are instrumental in optimizing stock levels, minimizing spoilage of perishable goods, automating reordering processes, and providing real-time visibility into inventory across multiple locations. The increasing adoption of cloud-based solutions is further accelerating this growth, offering scalability, accessibility, and cost-effectiveness, particularly attractive for Small and Medium-sized Enterprises (SMEs) looking to compete with larger players. The dynamic nature of the grocery supply chain, coupled with the imperative to meet evolving consumer expectations for product availability, underscores the critical role of sophisticated inventory management in driving profitability and customer satisfaction. Key market restraints, such as the high initial investment cost of some comprehensive inventory management systems and potential resistance to change from established operational practices, are being addressed by the increasing availability of modular and subscription-based solutions. Furthermore, the growing complexity of supply chains, influenced by global events and the demand for diversified product offerings, presents a significant challenge that inventory management systems are designed to mitigate. Trends like the integration of Artificial Intelligence (AI) and Machine Learning (ML) for predictive analytics, demand forecasting, and automated decision-making are rapidly shaping the market, enabling retailers to move beyond reactive inventory control to proactive, data-driven strategies. The expansion of e-commerce in the grocery sector also necessitates more robust inventory management to ensure seamless omnichannel fulfillment, further boosting the demand for these systems. Major players like SAP SE, Oracle, Microsoft Corporation, and Blue Yonder are at the forefront, continuously innovating to offer sophisticated solutions that address these multifaceted challenges and capitalize on the immense market opportunities. This report provides an in-depth analysis of the global Grocery Inventory Management System market, offering a detailed understanding of its dynamics, trends, and future trajectory. The study encompasses the Study Period: 2019-2033, with a Base Year: 2025, an Estimated Year: 2025, and a Forecast Period: 2025-2033, building upon a robust Historical Period: 2019-2024. The global market for Grocery Inventory Management Systems is anticipated to reach a significant valuation, with projections indicating a market size exceeding $500 million by 2025 and a substantial Compound Annual Growth Rate (CAGR) throughout the forecast period.

The market is projected to grow from USD 401.8 billion in 2025 to USD 3950.7 billion by 2035, reflecting a CAGR of 25.1% over the forecast period.

Metric	Value
Industry Size (2025E)	USD 401.8 billion
Industry Value (2035F)	USD 3950.7 billion
CAGR (2025 to 2035)	25.1%

Global Online Grocery Market - Country-Wise Per Capita Spending

Country	United States
Population (Millions)	345.4
Estimated Per Capita Spending (USD)	820.40

Country	China
Population (Millions)	1,419.3
Estimated Per Capita Spending (USD)	670.20

Country	United Kingdom
Population (Millions)	68.3
Estimated Per Capita Spending (USD)	750.30

Country	Germany
Population (Millions)	84.1
Estimated Per Capita Spending (USD)	580.60

Country	India
Population (Millions)	1,440.0
Estimated Per Capita Spending (USD)	215.80

Online Grocery Market - Global Country-Wise Outlook

Country	CAGR (2025 to 2035)
United States	8.2%

Country	CAGR (2025 to 2035)
United Kingdom	7.9%

Country	CAGR (2025 to 2035)
Germany	8.0%

Country	CAGR (2025 to 2035)
India	8.6%

Country	CAGR (2025 to 2035)
China	8.9%

Competition Outlook: Online Grocery Market

Company Name	Estimated Market Share (%), 2024
Amazon Fresh	20-25%
Walmart Grocery	15-20%
Instacart	12-16%
Tesco Online	8-12%
Other Companies (combined)	30-40%

United States online grocery market is anticipated to grow at an impressive CAGR during the forecast period and online grocery sales will exceed 20% of the whole U.S. grocery retail market

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Market Size
Forecast Market Size
CAGR
Fastest Growing Segment
Largest Market
Key Players

Click-and-Collect Grocery Market Outlook

According to our latest research, the global click-and-collect grocery market size has reached USD 70.4 billion in 2024, reflecting the rapid digital transformation in the retail sector. The market is experiencing robust momentum, growing at a compound annual growth rate (CAGR) of 13.2% from 2025 to 2033. By the end of 2033, the market is forecasted to reach a substantial USD 209.8 billion. This impressive growth is primarily driven by evolving consumer preferences for convenience, time-saving shopping experiences, and the increasing penetration of digital technologies in the grocery retail segment.

One of the primary growth factors fueling the click-and-collect grocery market is the shifting consumer behavior towards online shopping, particularly in the aftermath of the COVID-19 pandemic. Consumers are increasingly valuing the ability to order groceries online and pick them up at their convenience, avoiding long in-store queues and minimizing physical contact. This demand for convenience and safety has encouraged retailers to expand their click-and-collect services, integrating user-friendly digital platforms and mobile applications. The proliferation of smartphones and enhanced internet connectivity worldwide have further accelerated the adoption of these services, making click-and-collect grocery shopping accessible to a broader demographic.

Another significant driver is the technological advancements in logistics and supply chain management. Retailers are investing heavily in automation, real-time inventory tracking, and data analytics to streamline order processing and ensure accurate, timely fulfillment of online grocery orders. Innovations such as dedicated pickup lanes, temperature-controlled lockers, and advanced notification systems have enhanced the efficiency and reliability of click-and-collect services. These improvements not only boost customer satisfaction but also enable retailers to handle higher order volumes, supporting the scalability of click-and-collect operations. As a result, both large supermarket chains and independent grocery stores are leveraging these technological upgrades to stay competitive in a rapidly evolving market landscape.

The market is also benefiting from strategic partnerships and collaborations between retailers, technology providers, and logistics companies. These alliances are enabling the development of integrated platforms that offer seamless end-to-end experiences for consumers. Retailers are increasingly adopting omnichannel strategies, blending online and offline touchpoints to create a cohesive shopping journey. This trend is particularly pronounced in urban areas, where busy lifestyles and high population density drive demand for flexible and efficient grocery pickup solutions. Additionally, the rise of eco-friendly and contactless pickup options is attracting environmentally conscious consumers, further expanding the marketÂ’s appeal across diverse customer segments.

Retailers are increasingly turning to Click and Collect Solutions to enhance customer convenience and streamline operations. These solutions allow customers to place orders online and pick them up at a designated location, often without leaving their vehicles. By integrating Click and Collect Solutions, retailers can offer a seamless shopping experience that combines the ease of online shopping with the immediacy of in-store pickup. This approach not only reduces wait times but also minimizes the need for additional staffing, making it a cost-effective strategy for businesses. As consumer demand for flexible shopping options grows, the implementation of Click and Collect Solutions is becoming a critical component of modern retail strategies.

Regionally, North America leads the click-and-collect grocery market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The North American market is characterized by widespread adoption of digital retail solutions, a high concentration of major supermarket chains, and strong consumer inclination towards convenience-oriented shopping. In Europe, regulatory support for digital commerce and increasing investments in retail infrastructure are driving market growth. Meanwhile, the Asia Pacific region is witnessing rapid expansion, fueled by growing urbanization, rising disposable incomes,

Snapshot img

UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is valued to increase USD 56.2 billion, at a CAGR of 3.8% from 2024 to 2029. Rapid urbanization and rising consumer spending will drive the UK grocery retail market.

Major Market Trends & Insights

By Product - Food and beverages segment was valued at USD 176.60 billion in 2022
By Distribution Channel - Hypermarkets and supermarkets segment accounted for the largest market revenue share in 2022
CAGR : 3.8%

Market Summary

The Grocery Retail Market in the UK is a dynamic and evolving sector, characterized by the adoption of core technologies and innovative applications. With rapid urbanization and rising consumer spending, grocery retailers are investing in advanced technologies such as automation, AI, and robotics to streamline operations and enhance the customer experience. For instance, the use of self-checkout kiosks and mobile apps for contactless shopping has surged in popularity, particularly in response to the COVID-19 pandemic. However, the market also faces challenges, including the threat from counterfeit grocery products. According to a report by the Food Standards Agency, around 10% of all food and drink products sold in the UK are believed to be counterfeit.
To mitigate this issue, regulatory bodies are implementing stricter regulations and collaborating with retailers to ensure product authenticity. Despite these challenges, opportunities abound for grocery retailers in the UK. The market is expected to witness significant growth in the coming years, with online grocery sales projected to reach 15% of the total market share by 2025. Innovative store layouts and offerings, such as click-and-collect services and subscription-based models, are also gaining popularity among consumers. Overall, the Grocery Retail Market in the UK is a continuously unfolding landscape, shaped by a complex interplay of technological advancements, regulatory requirements, and consumer preferences.

What will be the Size of the UK Grocery Retail Market during the forecast period?

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How is the Grocery Retail in UK Market Segmented and what are the key trends of market segmentation?

The grocery retail in UK industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Food and beverages
  Non food


Distribution Channel

  Hypermarkets and supermarkets
  Convenience stores
  Discount stores
  Online
  Others


Sales Channel

  In-Store
  Online Delivery
  Click-and-Collect


Consumer Segment

  Urban Consumers
  Rural Consumers
  Premium Shoppers


Product Types

  Fresh Produce
  Packaged Foods
  Household Goods
  Health and Beauty


Geography

  Europe

    UK

By Product Insights

The food and beverages segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving grocery retail market in the UK, loss prevention strategies continue to be a priority for retailers, with online grocery shopping seeing a significant increase in adoption, reaching 7.1% of total sales in 2020. Sales promotion techniques, such as promotional pricing models and loyalty programs, are essential tools to attract and retain customers. Food safety regulations play a crucial role in ensuring product quality and consumer trust. Stock rotation and inventory optimization are essential for maintaining freshness and reducing waste. Automated checkout systems and self-checkout kiosks streamline the shopping experience, while e-commerce platforms enable seamless online ordering and last mile delivery.

Product traceability and quality control measures are vital for ensuring the authenticity and safety of goods. Retail technology integration, including demand forecasting and data analytics dashboards, enables retailers to optimize store operations efficiency and adapt to changing consumer behavior. Customer service metrics, such as response times and resolution rates, are key performance indicators for maintaining customer satisfaction. The grocery market is expected to grow further, with online sales projected to reach 11.7% of total sales by 2025. The adoption of advanced technologies, such as RFID tagging, AI-driven demand forecasting, and warehouse automation, will continue to transform the industry.

Category management techniques and waste reduction initiatives will help retailers optimize their offerings and reduce costs. The foods and beverages segment, which includes fresh and frozen meat, dairy products, fruits and vegetables, and snack foods, is a significant contributor to the market's growth. The most preferred grocery products in this segment include fresh bread, salty snacks, and ce

Grocery Delivery Software Market Outlook

The global grocery delivery software market size was valued at approximately $4.5 billion in 2023 and is projected to reach around $12.9 billion by 2032, growing at a compounded annual growth rate (CAGR) of 12.3% during the forecast period. The significant growth factor driving this market is the increasing consumer preference for online grocery shopping due to its convenience and time-saving benefits.

One of the primary growth factors fueling the grocery delivery software market is the surging demand for contactless shopping solutions, which has been significantly accelerated by the COVID-19 pandemic. Consumers are increasingly opting for online grocery services to avoid physical stores, leading to a sharp rise in the adoption of grocery delivery software solutions. Additionally, advancements in technology such as AI, machine learning, and IoT are further simplifying the online shopping experience, making it more efficient and user-friendly, thus encouraging more consumers to shift to online grocery platforms.

Another important driver of market growth is the rising penetration of smartphones and high-speed internet connectivity. The increasing use of mobile devices enables consumers to order groceries on the go, providing convenience and flexibility. Moreover, the proliferation of digital payment systems has simplified the online transaction process, thereby enhancing user experience and driving the market growth. Retailers and e-commerce platforms are investing heavily in grocery delivery software to optimize their supply chain and improve customer satisfaction, which is expected to further propel the market expansion.

The evolving consumer shopping behavior and the growth of the e-commerce sector are also pivotal factors contributing to the growth of the grocery delivery software market. Consumers are becoming more accustomed to the convenience of online shopping and are increasingly seeking personalized shopping experiences. Grocery delivery software solutions are integrating advanced features like personalized recommendations, subscription models, and loyalty programs to cater to these evolving consumer preferences, thereby driving market growth. Additionally, the increasing urbanization and busy lifestyles are further encouraging consumers to opt for online grocery delivery services.

The rise of e-grocery Service has been a game-changer in the grocery delivery software market. As consumers increasingly turn to digital solutions for their grocery needs, e-grocery services are providing a seamless and efficient shopping experience. These services offer a wide range of products, competitive pricing, and convenient delivery options, making them an attractive choice for busy consumers. The integration of advanced technologies such as AI and machine learning is further enhancing the capabilities of e-grocery services, enabling them to provide personalized recommendations and optimize delivery routes. As a result, e-grocery services are playing a pivotal role in driving the growth of the grocery delivery software market, catering to the evolving preferences of modern consumers.

From a regional perspective, the North American region holds a significant share in the grocery delivery software market, driven by the high adoption rate of advanced technologies and the presence of major market players. The Asia Pacific region is anticipated to witness substantial growth during the forecast period, attributed to the rapid digitalization, increasing disposable incomes, and growing urban population. Europe is also a key market, with strong growth prospects due to the rising consumer demand for convenient shopping solutions and a well-established e-commerce infrastructure.

Component Analysis

The grocery delivery software market is segmented by component into software and services. The software segment includes platforms and applications that facilitate online grocery ordering and delivery. This segment is experiencing robust growth due to the increasing adoption of digital solutions by retailers and e-commerce platforms. The software solutions are continuously evolving with the integration of advanced technologies like AI, machine learning, and big data analytics, which are enhancing the overall efficiency and user experience. These advancements are enabling retailers to better understand consumer preferences and optimize their inventory management, thereby driving the demand for grocery delivery software.

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Digital Channel Grocery Market Outlook

In 2023, the global digital channel grocery market size was valued at approximately USD 100 billion, with a projected compound annual growth rate (CAGR) of 15% through 2032, reaching an estimated USD 320 billion. This remarkable growth is driven by the increasing adoption of e-commerce platforms and the rising preference for online grocery shopping among consumers.

The digital channel grocery market is experiencing significant growth due to several key factors. The widespread use of smartphones and internet penetration has made online shopping more accessible to a larger audience. Consumers are increasingly turning to digital channels for their grocery needs due to the convenience of home delivery and the time-saving aspects it offers. Additionally, the growing urban population and busy lifestyles have further bolstered the demand for online grocery shopping, as it allows consumers to manage their time more efficiently.

Furthermore, the COVID-19 pandemic has accelerated the shift towards online grocery shopping. With lockdowns and social distancing measures in place, consumers were forced to rely on digital channels to purchase their groceries. This shift in consumer behavior has led to a surge in demand for online grocery services, with many consumers continuing to use these platforms even after the pandemic restrictions were lifted. Retailers have also ramped up their digital offerings to cater to this growing demand, further driving the market's growth.

Another significant growth factor is the increased investment in technology and infrastructure by grocery retailers. Companies are continually enhancing their digital platforms to provide a seamless shopping experience for consumers. This includes improvements in user interface design, faster delivery options, and personalized recommendations based on consumer preferences. Moreover, advancements in supply chain management and logistics have enabled retailers to efficiently manage their inventory and deliver products promptly, thereby boosting customer satisfaction and retention.

The Food And Grocery Retail sector is undergoing a transformative shift, with digital channels playing an increasingly pivotal role. As consumers become more accustomed to the convenience of online shopping, traditional grocery retailers are adapting by enhancing their digital presence. This evolution is not just about meeting consumer demand but also about leveraging technology to streamline operations and improve customer engagement. Retailers are utilizing data analytics to better understand consumer preferences and tailor their offerings accordingly. This strategic shift is crucial for staying competitive in a rapidly evolving market landscape.

Regionally, North America and Europe are leading the market, owing to high internet penetration, advanced infrastructure, and a strong preference for online shopping. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. The rapid urbanization, increasing disposable incomes, and burgeoning middle-class population in countries like China and India are driving the demand for digital grocery channels. Additionally, the growing number of e-commerce platforms and favorable government policies supporting digital transactions are contributing to the market's expansion in this region.

Product Type Analysis

The digital channel grocery market is segmented by product type into Fresh Produce, Packaged Food, Beverages, Household Products, Personal Care, and Others. Fresh Produce, including fruits, vegetables, and dairy products, has seen a significant rise in demand within digital channels. Consumers are increasingly seeking the convenience of having fresh produce delivered directly to their doorsteps, bolstered by improved packaging technology that ensures the freshness of these items. Retailers are partnering with local farmers and suppliers to offer a variety of fresh produce and meat products, ensuring quality and fostering consumer trust.

Packaged Food is another dominant segment in the digital grocery market. The wide range of products available, from snacks and cereals to ready-to-eat meals, caters to the diverse preferences of consumers. The stability and longer shelf-life of packaged foods make them a preferred choice for online shopping. Brands are also focusing on offering healthier options in their product lines, tapping into the g

Snapshot img

Instant Grocery Market Size 2025-2029

The instant grocery market size is valued to increase USD 131 billion, at a CAGR of 16% from 2024 to 2029. Increased adoption of technology will drive the instant grocery market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 66% growth during the forecast period.
By Product - Nonfood products segment was valued at USD 51.70 billion in 2023
By Delivery - Home delivery segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 193.99 billion
Market Future Opportunities: USD 131.00 billion 
CAGR : 16%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and rapidly evolving sector, characterized by the increasing adoption of technology to streamline the shopping experience. Core technologies, such as artificial intelligence and machine learning, are revolutionizing the way consumers order and receive their groceries, offering convenience and personalization. Applications like instant delivery and virtual shopping carts are gaining traction, with market data suggesting that over 30% of consumers have used online grocery services in the past year. However, this shift brings challenges, such as increased order transparency and the need to cope up with technological changes. Regulations continue to shape the market, with regional differences influencing the adoption of various service types or product categories. Looking ahead, the market is poised for continued growth, with opportunities arising from the integration of advanced technologies and the expansion into new markets. For more insights, explore related markets such as the Food Delivery Market and the E-commerce Market.

What will be the Size of the Instant Grocery Market during the forecast period?

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How is the Instant Grocery Market Segmented and what are the key trends of market segmentation?

The instant grocery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductNonfood productsFood productsDeliveryHome deliveryClick and collectTypeOne-time purchasersSubscribersGeographyNorth AmericaUSEuropeFranceGermanyItalyUKAPACAustraliaChinaIndiaJapanSouth KoreaRest of World (ROW)

By Product Insights

The nonfood products segment is estimated to witness significant growth during the forecast period.

In the rapidly evolving grocery market, instant access to non-food items is becoming increasingly essential for consumers. With rising employment rates and income levels, the demand for convenience has surged, leading to the growth of instant grocery services. Micro-fulfillment centers, equipped with data analytics dashboards and real-time order tracking, enable quick and efficient order processing. Demand forecasting models, order fulfillment systems, and automated picking systems ensure accurate and timely delivery of products. Dark store operations, last-mile delivery solutions, and subscription box services cater to the needs of time-pressed consumers. AI-powered demand prediction and automated warehouse systems streamline operations and enhance efficiency. E-commerce platform integration, order batching algorithms, and IoT sensor integration further optimize the supply chain. Blockchain technology applications and on-demand delivery platforms ensure transparency and trust. Customer order management, shelf life management, cold chain logistics, and food safety protocols maintain the quality and freshness of perishable goods. Smart shelving systems, inventory management software, warehouse automation technologies, mobile POS systems, and payment gateway integration facilitate seamless transactions. Delivery route optimization, temperature-controlled transport, and delivery driver management ensure timely and efficient delivery. The market for non-food products is a significant segment, with adoption currently at 35%. Looking ahead, industry experts anticipate a 30% increase in demand for these services in the next two years. Fresh produce handling, order fulfillment, and last-mile delivery are expected to witness the most significant growth. The integration of technology and automation is transforming the grocery industry, offering unparalleled convenience and efficiency.

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The Nonfood products segment was valued at USD 51.70 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 66% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape

With a market size of XXX million and a CAGR of XX% from 2019 to 2033, the global grocery market offers substantial growth opportunities. Key drivers include rising disposable incomes, urbanization, and changing consumer preferences towards organic and healthy food options. Additionally, advancements in e-commerce and online grocery delivery services have expanded market reach and convenience. Market segments include type and application. By type, the market is divided into foods and non-foods, with foods holding a significant share. By application, the market is segmented into online and offline channels. Online grocery shopping is gaining popularity due to factors such as time-saving convenience, wider product selection, and home delivery services. Major players in the market include Walmart, Kroger, Costco, 7-ELEVEN, Amazon, and Albertsons, among others. Geographical regions covered in the market analysis include North America, South America, Europe, Middle East & Africa, and Asia Pacific. The report provides comprehensive data on market trends, restraints, and company profiles to help stakeholders make informed decisions and capitalize on growth opportunities.

Monthly sales of grocery and convenience retailers in Canada hit a high of **** billion Canadian dollars in March 2020, an increase of over *** billion compared to the previous month. The spread of coronavirus in early March 2020 and consequent panic buying can explain this jump in sales. In 2025, grocery store sales were again exceeding ** billion Canadian dollars. Canadian in-store and online shopping As of December 2023, there were nearly ****** grocery stores located across Canada, signaling an ongoing demand for brick-and-mortar grocery stores, despite the rise of e-commerce in the Canadian retail sector. According to a recent survey, nearly ** percent of surveyed Canadians stated that they spend more on groceries bought in-store than online. Nevertheless, many Canadian shoppers had bought groceries online for the first time in 2020, mainly because of concerns about the coronavirus and the fact that it was convenient to do so. Leading grocery retailers In the 2019/20 fiscal year, Loblaw Cos. Ltd. was the leading food retailer in Canada, with a grocery sales value of around ***** billion Canadian dollars. Sobeys Inc. and Metro Inc. ranked second and third, with sales of approximately ***** and ***** billion Canadian dollars, respectively.

The Food & Grocery Retail Market size was valued at USD 12,266.7 billion in 2023 and is projected to reach USD XXX billion by 2032, exhibiting a CAGR of 3.2 % during the forecasts period. Food & grocery retail means to sell fruits and daily essential products directly to the customers through brick and mortar stores such as supermarkets & hypermarkets, convenience stores, grocery stores, specialty stores as well as online platforms. The demand of food & grocery has been increasing due to increasing number of middle-class population especially in developing economies. Furthermore, the growth of the millennial and Generation Z customer segments and increased adoption of online platforms for purchasing food and grocery is expected to accelerate growth. Food & grocery retailers also offers their private label brands at competitive pricing and sustainable packaging to attract more customers is expected to pose significant growth in the global food & global retail industry. Recent developments include: In September 2023, Kroger Co. and Albertsons Companies Inc. have officially entered into a binding agreement with C&S Wholesale Grocers, LLC for the sale of specific stores, banners, distribution centers, offices, and private label brands. This transaction is part of their planned merger, which was initially disclosed on October 14, 2022. , In September 2023, C&S Wholesale Grocers, LLC (C&S), a prominent player in wholesale grocery supply and supply chain solutions within the United States, has formally committed to acquiring 413 stores, eight distribution centers, and two offices. These assets became available as a result of the planned merger between The Kroger Co. and Albertsons Companies Inc. .

The Online Grocery Market size was valued at USD 57.81 billion in 2023 and is projected to reach USD 304.68 billion by 2032, exhibiting a CAGR of 26.8 % during the forecasts period. The Online Grocery Market bears the framework of selling food and household products, which can be purchased through the Interne and are transported directly to the consumer’s home. This market is that of fresh produce, processed foods, drinks, and household perishable items. Examples include time and convenience, access to a richer product offering to name but a few. Applications span across direct to the consumer websites and apps, and subscription based services. Some of them are high personalization through data analytics, delivery services and contactless payment, packaging and sustainability. The opportunities which have led to the increase of the market include the growth of online consumers’ trend and the development of logistics and technologies. Recent developments include: In March 2022, Instacart launched "The Instacart Platform," a suite of enterprise-grade technologies designed to revolutionize the grocery industry. With this innovative offering, Instacart aims to empower retailers and enhance the consumer experience, catering to various shopping preferences. , In November 2021, Amazon merged its grocery stores, Fresh and Pantry, into a single unified store, Amazon Fresh. This integrated store is now accessible to customers in over 300 cities across India. By consolidating these services, Amazon aims to provide an all-in-one online destination, offering unbeatable savings, diverse products, and fast, convenient delivery options. , In January 2019, Walmart collaborated with four delivery companies to expand its Online Grocery Delivery service. Point Pickup, Skipcart, AxleHire, and Roadie were added to Walmart's team to enhance online grocery deliveries in metropolitan areas across four states. Furthermore, this strategic move was accompanied by expansion plans to serve even more customers in various locations.t .

In 2023, Walmart's online sales were estimated at 49.3 billion U.S. dollars. According to forecasts, the U.S.-based multinational retail corporation's e-commerce sales were to further increase in the coming years, reaching 58.9 billion dollars by 2024. In addition, Walmart's marketplace gross merchandise volume growth was 100 percent in 2020. This unprecedented growth in the digital segment was largely due to the COVID-19 pandemic.

Grocery Store POS Systems Market Outlook

The global market size for grocery store POS systems was valued at approximately USD 18 billion in 2023 and is projected to reach around USD 35 billion by 2032, growing at a CAGR of 7.5% during the forecast period. This market growth is driven by increasing demand for efficient transaction management and customer engagement solutions in grocery stores worldwide.

One of the primary growth factors for the grocery store POS systems market is the rising adoption of advanced technologies aimed at improving operational efficiency. Grocery stores are increasingly leveraging POS systems to streamline checkout processes, manage inventory, and facilitate customer relationship management. These systems not only speed up transactions but also provide valuable data insights that help store owners make informed decisions, thereby enhancing overall business performance. The continuous evolution of mobile and cloud-based POS systems has further bolstered their adoption across various retail segments.

Another significant driver of market growth is the increasing consumer preference for contactless payments and e-commerce. The COVID-19 pandemic has accelerated the shift towards digital transactions, compelling grocery stores to integrate sophisticated POS systems that support multiple payment options, including mobile wallets and contactless cards. This trend is expected to persist, propelling the demand for versatile POS solutions that can cater to diverse payment methods, thereby ensuring a seamless shopping experience for customers.

Moreover, the growing emphasis on personalized customer experiences is contributing to the expansion of the grocery store POS systems market. Modern POS systems are equipped with features such as customer data analytics and loyalty program management, enabling grocery stores to offer tailored promotions and rewards. This not only helps in retaining existing customers but also attracts new ones, ultimately driving sales and profitability. As retailers continue to focus on enhancing customer engagement, the demand for advanced POS systems with robust CRM capabilities is expected to rise.

In the realm of retail, Furniture Store POS Software is gaining traction as a specialized solution tailored to meet the unique needs of furniture retailers. Unlike standard POS systems, these software solutions are designed to handle the complexities of managing large inventories, custom orders, and delivery logistics associated with furniture sales. By integrating features such as real-time inventory tracking, customer relationship management, and sales analytics, Furniture Store POS Software enables retailers to streamline operations and enhance customer satisfaction. As furniture stores increasingly adopt digital solutions to improve efficiency and customer service, the demand for specialized POS software is expected to grow.

From a regional perspective, North America and Europe currently dominate the grocery store POS systems market, owing to the high penetration of advanced retail technologies and the presence of numerous large grocery chains. However, the Asia Pacific region is anticipated to exhibit the highest growth rate during the forecast period. Factors such as rapid urbanization, increasing disposable incomes, and the proliferation of organized retail chains are driving the adoption of POS systems in this region. The growing focus on digital transformation and the implementation of government initiatives to promote cashless transactions further support market growth in Asia Pacific.

Component Analysis

In the grocery store POS systems market, the component segment is categorized into hardware, software, and services. Each of these components plays a crucial role in the overall functionality and efficiency of POS systems. Hardware components primarily include barcode scanners, receipt printers, cash drawers, and payment terminals. The increasing demand for compact and mobile hardware solutions is driving innovations in this segment. For instance, the advent of tablet-based POS systems has revolutionized the way grocery stores operate, offering flexibility and ease of use.

The software component of grocery store POS systems encompasses point-of-sale software, inventory management software, and customer relationship management (CRM) software, among others. The software segment is witnessing significant growth due to the rising need for integrated

AI in Grocery Retail Market Outlook

According to our latest research, the global AI in Grocery Retail market size reached USD 6.7 billion in 2024, reflecting the sectorÂ’s rapid digital transformation. The market is expected to expand at a robust CAGR of 23.4% from 2025 to 2033, propelling it to an estimated USD 54.1 billion by 2033. This remarkable growth trajectory is primarily driven by the increasing adoption of artificial intelligence solutions across grocery retail operations, aiming to optimize supply chains, personalize customer experiences, and streamline inventory management. As per our latest research, the convergence of AI technologies and evolving consumer expectations is reshaping the competitive landscape, propelling retailers to invest heavily in advanced analytics, automation, and intelligent platforms.

One of the principal growth factors fueling the AI in Grocery Retail market is the urgent need for operational efficiency in an intensely competitive sector. Grocery retailers are grappling with thin profit margins and volatile demand patterns, making AI-powered solutions indispensable for cost optimization and demand forecasting. Machine learning algorithms and predictive analytics are being deployed to fine-tune inventory levels, reduce spoilage, and automate replenishment processes. This not only minimizes waste but also ensures product availability, directly impacting customer satisfaction. Furthermore, AI-driven automation in checkout and payment processes is reducing labor costs and enhancing speed, which is critical in high-traffic grocery environments. The integration of robotics and computer vision for shelf management is also gaining traction, further optimizing store operations and improving bottom-line performance.

Another significant growth driver is the evolving consumer demand for personalized shopping experiences. AI technologies are enabling grocery retailers to analyze vast datasets derived from customer purchase histories, preferences, and behavior, allowing for hyper-personalized promotions, recommendations, and product assortments. Natural language processing and conversational AI are transforming customer service through chatbots and virtual assistants, providing instant support and enhancing engagement. Moreover, the rise of omnichannel retailing, accelerated by the COVID-19 pandemic, has intensified the need for seamless integration between online and offline channels, a challenge that AI is uniquely positioned to address. Retailers leveraging AI for dynamic pricing, targeted marketing, and customer loyalty programs are witnessing significant improvements in retention rates and average basket sizes.

The proliferation of advanced AI infrastructure and cloud-based platforms is also accelerating the adoption of AI in grocery retail. Cloud deployment models are making AI solutions more accessible to small and medium-sized enterprises (SMEs), enabling them to compete with larger players by leveraging scalable, cost-effective technologies. The ecosystem is further enriched by strategic partnerships between retailers, technology providers, and logistics companies, fostering innovation and accelerating time-to-market for new AI-driven applications. Additionally, regulatory support for digital transformation and data-driven decision-making is encouraging greater investment in AI research and development across the grocery retail value chain. Despite challenges related to data privacy and integration complexities, the market outlook remains exceedingly positive, with continuous advancements in machine learning, computer vision, and IoT paving the way for next-generation retail experiences.

AI-Driven Grocery Demand Planning is becoming a cornerstone for modern retail strategies, especially in the grocery sector. By leveraging sophisticated algorithms and real-time data analytics, retailers can predict consumer demand with remarkable accuracy. This capability not only helps in maintaining optimal inventory levels but also minimizes waste and enhances customer satisfaction by ensuring product availability. The integration of AI-driven demand planning tools allows retailers to respond swiftly to market changes and consumer preferences, thus maintaining a competitive edge. As the grocery industry continues to evolve, the adoption of AI-driven demand planning is expected to become even more widespread, offering retailers a powerful tool to navigate the complexities of sup