The global online grocery market size reached USD 710.10 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6,590.92 Billion by 2033, exhibiting a growth rate (CAGR) of 28.09% during 2025-2033. The market demand is experiencing robust growth driven by the growing reliance on smartphones to browse the internet and shop from online platforms and increasing need for convenience. In addition, the rising utilization of artificial intelligence (AI) and machine learning (ML) to personalize shopping experiences is opportunistic for the market growth.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 710.10 Billion
Market Forecast in 2033	USD 6,590.92 Billion
Market Growth Rate 2025-2033	28.09%

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on product type, business model, platform, and purchase type.

In 2015, China was the world leader in terms of market value of online grocery shopping, and they are expected to retain that position in 2020. Over that time period, the value of the Chinese market is expected to quadruple. This reflects the general trend of online grocery shopping taking a larger percentage of the grocery market each year.

The grocery landscape

Online grocery shopping is facilitated either by brick-mortar-supermarkets offering pick-up and delivery as a feature of multi-channel retailing (selling both in traditional offline channels as well as online outlets), or by standalone e-commerce retailers.

China’s strengths

The size of China’s online grocery market can be explained both by demographics and technological adoption rates. China currently has the largest population in the world and, after India, has over four times the population of the next largest country, the United States. More importantly, it has the highest online shopping penetration rate and the most e-commerce sales as percentage of total retail sales of any country in the world.

The online grocery market is projected to be worth US$ 377.4 billion in 2023. The market is likely to reach US$ 3396.9 billion by 2033. The market is further expected to surge at a CAGR of 24.60% during the forecast period 2023 to 2033.

Attributes	Key Insights
Online Grocery Market Estimated Size in 2023	US$ 377.4 billion
Projected Market Value in 2033	US$ 3,396.9 billion
Value-based CAGR from 2023 to 2033	24.60%

2018 to 2022 Historical Analysis vs. 2023 to 2033 Market Forecast Projections

Historical Value in 2022	US$ 350.5 billion
Market Estimated Size in 2023	US$ 377.4 billion
Projected Market Value in 2033	US$ 3,396.9 billion

Country-wise Insights

China	32.50%
India	32.30%
France	22.90%
Canada	16.70%
The United States	14.20%

Category-wise Insights

Category	Market Shares
Packed foods	62.70%
Home Delivery	58.20%

Report Scope

Attribute	Details
Estimated Market Size in 2023	US$ 377.4 billion
Projected Market Valuation in 2033	US$ 3,396.9 billion
Value-based CAGR 2023 to 2033	24.60%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value in US$ billion
Key Regions Covered	North America Latin America Western Europe Eastern Europe South Asia and Pacific East Asia The Middle East & Africa
Key Market Segments Covered	Ingredient Type Form Function Application Product Type Region
Key Countries Profiled	The United States Canada Brazil Mexico Germany The United Kingdom France Spain Italy Russia Poland Czech Republic Romania India Bangladesh Australia New Zealand China Japan South Korea GCC countries South Africa Israel
Key Companies Profiled	Amazon.com Inc. Walmart Inc. The Kroger Co. Peapod LLC Fresh Direct LLC Publix Super Markets Inc. Target Corporation Best Buy Co. Inc. Instacart Costco Wholesale Corporation Safeway Inc. Carrefour S.A. Edeka Group Tesco PLC Aldi Alibaba Group JD.com Honestbee Grofers India Pvt. Ltd. Avenue Supermarts Ltd.

The Online Grocery Market will grow at a CAGR of 24.6% during the forecast period, with an estimated size and share crossing USD 1,894.15 billion by 2030.

The Online Grocery Market is projected to grow at 21.5% CAGR, reaching $1435.51 Billion by 2029. Where is the industry heading next? Get the sample report now!

In the twelve months ending June 2018, the United Kingdom (UK) accounted for a share of 7.2 percent of global online grocery sales, followed by France at 5.6 percent. The eastern European country of Czechia surpassed other Western European markets such as the Netherlands and Germany to come in third in this ranking.

Online grocery sales in the UK

When it comes to the development of the online grocery sales market and the online sales value of food stores, the UK is a European leader. Despite this, online sales were still the smallest sales channel compared to sales of groceries in hypermarkets and supermarkets in the UK in 2016.

Traditional grocery stores

While the UK leads Europe in online sales of groceries, it has the smallest trade share of traditional grocery stores in Europe. Unsurprisingly countries such as Greece, Italy and Spain still have larger trade shares for traditional vendors. However, what is surprising, is that Spain also has a relatively large share of the worldwide online grocery market.

The size and share of the market is categorized based on Product (Food, Beverages, Household Essentials, Personal Care, Pet Supplies) and Application (B2B, B2C) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The COVID-19 pandemic gave a tremendous boost to online sales in the grocery market across the globe. From 4.9 percent in 2019, e-commerce jumped to account for 7.2 percent of grocery sales worldwide in 2021.

REPORT ATTRIBUTE	DETAILS
MARKET SIZE ()
MARKET SIZE ()
CAGR (2023-2029)	%
HISTORIC YEAR
BASE YEAR
FORECAST YEAR
BY TYPE
BY APPLICATION
GEOGRAPHIC ANALYSIS	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
KEY PLAYERS	.

Global online grocery delivery services market size was evaluated at $286 billion in 2021 and is slated to hit $2,159 billion by 2030 with a CAGR of nearly 26%.

The global online grocery market size is expected to reach USD 1,894.15 Billion by 2030 according to a new study by Polaris Market Research.

According to estimates, Walmart and Alibaba are and will continue to be the world's leading edible grocery retailers. E-commerce sales by the U.S. retailer would almost reach 18 U.S. billion dollars in 2021, increasing almost twofold by 2026. Similarly, Alibaba's online grocery sales would go from 17.6 to 29.3 billion U.S. dollars during the same period.

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Instant Grocery Market Size 2024-2028

The global instant grocery market size is forecast to increase by USD 104.4 billion at a CAGR of 14.76% between 2023 and 2028. The market is experiencing significant growth, driven by the increased adoption of technology and changing consumer preferences. With the rise of online shopping and contactless delivery, there is a rise in demand for instant grocery services that offer convenience and transparency. Technological advancements, such as artificial intelligence and machine learning, are enabling retailers to offer personalized recommendations and streamlined order processing. These services enable users to manage their finances from anywhere, at any time, through various digital channels such as mobile apps, websites, and automated teller machines.

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The market is a rapidly growing segment within the larger e-commerce industry, with online grocery shopping gaining significant traction among consumers. E-commerce platforms and mobile applications have revolutionized the way we buy food and non-food products, including breakfast and dairy, snacks and beverages, fresh produce, cleaning essentials, and more. Instant grocery delivery has become a popular alternative to traditional grocery store shopping, offering the convenience of online orders and e-commerce operations. Technological developments such as smart tracking and instant delivery applications have made it possible for online grocers to deliver food and other essentials quickly and efficiently. The integration of online retail into the grocery industry has disrupted the traditional supermarket model, with consumers increasingly opting for the convenience and affordability of online shopping. However, keeping up with these technological changes poses a challenge for many players in the market. Ensuring seamless integration of technology into their operations and maintaining a competitive edge are key priorities for instant grocery providers. Additionally, the need for quick and reliable delivery, as well as ensuring product freshness, adds to the complexity of the market landscape. Overall, the market is poised for continued growth, driven by consumer demand for convenience and the ongoing integration of technology into the grocery shopping experience.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

Product

  Nonfood products
  Food products


Geography

  APAC

    China
    Japan


  Europe

    UK
    France


  North America

    US


  South America



  Middle East and Africa

By Product Insights

The nonfood products segment is estimated to witness significant growth during the forecast period. Online grocery shopping has revolutionized the way consumers purchase food and non-food products in the modern grocery industry. E-commerce platforms and mobile applications have made it possible for individuals to place orders for breakfast and dairy items, snacks and beverages, fresh produce, cleaning essentials, bath and body products, and home utilities from the convenience of their homes. Non-food products, which include shampoos, conditioners, toiletries, bathroom cleaners, and other hygiene grooming products, are a larger segment than food items. As lifestyles become increasingly busy and time-pressed, the demand for immediate shopping solutions grows. Instant grocery shopping caters to this need by offering online orders for essential items with quick delivery.

E-commerce operations utilize electric motorcycles, scooters, and urban dark storefronts to ensure hyperlocal delivery services. Dark stores and fulfillment centers serve as hubs for instant-delivery apps, where riders on bikes use smart tracking technology to efficiently pick and deliver orders. This approach offers convenience to consumers, enabling them to lead comfortable lives without the need to visit physical supermarkets or grocery stores. Online retail of these non-food items is a significant trend in the grocery industry, transforming traditional brick-and-mortar establishments into e-commerce websites and online platforms.

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The Nonfood products segment accounted for USD 46.60 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 65% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Online grocery shopping has revolutionized the way consumers purchase foo

The size and share of the market is categorized based on Type (Type I, Type II, Type III, Type IV) and Application (Application I, Application II, Application III, Application IV) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

According to Cognitive Market Research, the global E grocery market size is USD 51254.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 27.00% from 2024 to 2031.

North America holds the major market of more than 40% of the global revenue with a market size of USD 20501.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.2% from 2024 to 2031.
Europe accounts for a share of over 30% of the global market size of USD 15376.26 million.
Asia Pacific holds the market of around 23% of the global revenue with a market size of USD 11788.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 29.0% from 2024 to 2031.
Latin America's market has more than 5% of the global revenue, with a market size of USD 2562.71 million in 2024. It will grow at a compound annual growth rate (CAGR) of 26.4% from 2024 to 2031.
Middle East and Africa holds the major market of around 2% of the global revenue with a market size of USD 1025.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.7% from 2024 to 2031.
The staple and cooking essentials holds the highest E grocery market revenue share in 2024.

Market Dynamics of E grocery Market

Key Drivers for E grocery Market

Convenience and Timesaving Benefits to Increase the Demand Globally

The convenience and timesaving benefits of ordering groceries online are key factors driving increased demand globally. E-grocery platforms allow consumers to browse and purchase items from the comfort of their homes or on the go, eliminating the need for physical store visits and long checkout lines. This streamlined shopping experience saves valuable time and effort, catering to the busy lifestyles of modern consumers. Moreover, the availability of flexible delivery options, including same-day or scheduled deliveries, further enhances convenience. As consumers increasingly prioritize convenience and efficiency in their shopping habits, the demand for online grocery services continues to rise worldwide, shaping the future of retail and driving the expansion of the e-grocery market.

Changing Consumer Behavior to Propel Market Growth

Another key driver in the E grocery market is the Changing Consumer Behavior. With increasingly hectic lifestyles, consumers prioritize convenience and timesaving solutions in their shopping habits. Online grocery shopping provides a convenient alternative to traditional brick-and-mortar stores, allowing customers to browse and purchase items from the comfort of their homes or on-the-go. The convenience, variety, and accessibility offered by e-grocery platforms align with evolving consumer preferences, driving increased adoption globally. This changing behavior underscores a growing demand for digital solutions that cater to modern lifestyles and preferences. As a result, e-grocery market players are expanding their offerings and enhancing their services to meet the evolving needs of consumers, leading to substantial market growth and reshaping the future of grocery retailing on a global scale.

Restraint Factor for the E grocery Market

Quality Concerns to Impede the Growth

One key restraint in the E grocery market is quality concerns. Unlike traditional brick-and-mortar stores where shoppers can inspect products firsthand, e-grocery shoppers rely on descriptions and images provided by the platform, which may not always accurately reflect the item's condition upon delivery. Issues such as mishandling during transit or improper storage can further compromise product quality. To address these concerns and foster consumer trust, e-grocers must prioritize quality control measures, including stringent sourcing standards, proper handling procedures, and transparent communication with customers regarding product freshness and quality assurance processes. By instilling confidence in the quality of their offerings, e-grocers can mitigate this restraint and drive sustained growth in the market.

Impact of COVID-19 on the E grocery Market

The COVID-19 pandemic has had a profound impact on the e-grocery market, accelerating its growth and reshaping consumer behaviors. With lockdowns and social distancing measures in place, consumers increasingly turned to online shopping for groceries as a safer alternative to traditional brick-and-mortar stores. This surge in demand led to unprecedented levels of traffic on e-grocery pla...

Online Grocery market will be growing at a CAGR of 33.37% during 2025 to 2033.

Globally, the user penetration of online grocery delivery services increased almost threefold between 2017 and 2023, going from 6.5 percent to just over 18 percent. Online grocery delivery penetration is poised to continue increasing until it reaches an estimated 26 percent by 2028.

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Online Grocery Market Size 2025-2029

The online grocery market size is forecast to increase by USD 1535.6 billion at a CAGR of 18.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing popularity and adoption of e-commerce platforms. This trend is particularly prominent in developed markets, where consumers value the convenience and time savings offered by online shopping. Another key driver is the rising demand for functional food and beverages, as consumers prioritize health and wellness in their dietary choices. End-user perception is also evolving, with online grocery shopping now seen as a viable and convenient alternative to traditional brick-and-mortar stores. However, challenges remain, including the need to ensure a seamless and efficient shopping experience, as well as addressing concerns around food quality and freshness. Companies seeking to capitalize on this market opportunity must focus on delivering a user-friendly online platform, investing in logistics and delivery infrastructure, and building trust with consumers through transparent communication and high-quality products. By staying abreast of these trends and addressing the challenges head-on, players in the market can effectively navigate this dynamic and competitive landscape.

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

Request Free SampleThe market has experienced significant growth in recent years, driven by the convenience and time-saving benefits it offers consumers. With the increasing adoption of digital platforms for ordering household products, online grocery delivery has become a preferred choice for tech-savvy consumers seeking a wide product selection and contactless delivery options. Small-scale grocers have joined the fray, leveraging digital technologies such as artificial intelligence (AI) and machine learning (ML) to enhance supply chain management and offer locally sourced groceries. Online payments have streamlined the checkout process, while delivery options have expanded to include drone deliveries in some regions. The market's size is projected to continue growing, as more consumers embrace the convenience of ordering groceries online and having them delivered to their doorstep. Overall, the market represents a dynamic and innovative space, where technology and consumer demand are driving new trends and shaping the future of grocery shopping.

How is this Online Grocery Industry segmented?

The online 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. ProductFood productsNon-food productsTypeOne time customersSubscribersDelivery ModeHome deliveryClick and collectProduct TypeFresh produceBreakfast and dairySnacks and beveragesStaples and cooking essentialsOthersGeographyAPACChinaIndiaIndonesiaJapanEuropeFranceRussiaUKNorth AmericaUSCanadaSouth AmericaBrazilMiddle East and Africa

By Product Insights

The food products segment is estimated to witness significant growth during the forecast period.The market has gained significant traction in recent years, with consumers increasingly opting for the convenience and ease of shopping for food products online. Factors such as customization and personalization options, swift delivery processes, integrated return policies, and a wide range of products and brand choices are driving this trend. Leading global packaged food and beverage producers, including Nestle, Danone, PepsiCo, Mars, Coca-Cola, Kraft-Heinz, Abbott, and Mondelez, have recognized this shift and have established a strong online presence through their own websites and third-party retailers. Online grocery shopping offers consumers the ability to quickly and easily order items such as milk products, breakfast cereals, snacks and beverages, and fresh produce, with options for dietary filters and unique preferences. The integration of technology, such as secure payment gateways, AI recommendations, and mobile applications, enhances the shopping experience and saves time. With the increasing penetration of high-speed internet and the availability of last-mile delivery solutions, such as delivery drones and automated vehicles, deliveries are becoming faster and more reliable. Additionally, cashback offers, loyalty programs, subscription models, and membership programs offer incentives for repeat purchases and customer loyalty. Overall, the market is a growing segment, with e-commerce platforms providing a user-friendly interface, efficient delivery logistics, and predictive analytics for inventory management and demand forecasting.

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The Food products segment was valued at USD 309.70 billion in 2

Online Grocery Delivery Market Report is Segmented by Delivery Model (Retail Delivery, Quick Commerce, Meal Kit Delivery), by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Global Digital Grocery Market Size By Product Type (Fresh Produce, Breakfast And Dairy), By Type of Retailer (Supermarkets And Hypermarkets, Online-Only Retailers), By Payment Methods (Credit/Debit Cards, Digital Wallets), By Geographic Scope And Forecast