In a 2023 survey of U.S. shoppers, 68 percent of respondents who identified themselves as primary shoppers in their household were women, while 56 percent were men. For those who identified themselves as self shoppers, that is, people who live alone and are responsible for their own spending, 15 percent were men and 13 percent were women.

In the United States, 7-Eleven was the most popular grocery store among millennials surveyed in the first quarter of 2025. It had a popularity of 67 percent, with Aldi and Trader Joe's following in the ranking with over 60 percent of respondents having a positive opinion of them. Grocery stores in the U.S. There is a huge market for groceries in the United States, with grocery store sales in the country having increased over the last number of years and reaching around 895 billion U.S. dollars in 2024. Among the grocery retailers, Kroger was the leading one in the United States in 2023, by a wide margin. It had nearly double the retail sales of the next chain, Albertsons, with a total of close to 150 billion U.S. dollars. Consumer behavior According to a June 2023 survey, store environment was the leading factor when choosing which store to shop at for groceries among grocery shoppers in U.S. households. Other leading factors included the variety of the product range, proximity to home and workplace, and the offers, discounts, and promotions offered by the grocery store.

The primary grocery shopper in U.S. households made an average of *** shopping trips per week in 2025. The importance of fresh products in consumers’ diets, along with buying habits, keep shoppers returning to stores to restock their shelves and fridges. Despite the increasing competition from online grocery retailers, grocery shopping in a physical store is still important to Americans. Online influences Within the U.S., consumers have a number of choices when it comes to how they choose to do their weekly or bi-weekly food shop. Whilst most Americans still choose to visit brick-and-mortar stores, online grocery shopping is becoming undoubtedly more popular. To keep up with such trends, some grocery stores offer click and collect or grocery delivery service. This reduces the number of in-store visits consumers make when buying groceries. Generational preferences Online shopping comes as second nature to younger consumers. Therefore, it is no surprise that Millennials account for the highest spending share of digital grocery orders and delivery services in the United States.. Generation X are not far behind Millennials when it comes to share of spending. This is an important demographic for online grocery retailers to target, as Generation X are the generation spending the most on average on groceries per month.

Online Grocery Market Outlook

According to our latest research, the global online grocery market size reached USD 420.6 billion in 2024, reflecting a robust expansion fueled by evolving consumer preferences and rapid digitalization. The market is projected to grow at a CAGR of 18.2% from 2025 to 2033, reaching a forecasted value of USD 1,921.8 billion by 2033. This remarkable growth is primarily attributed to increasing urbanization, widespread adoption of smartphones, and the growing demand for convenience in grocery shopping. The online grocery market continues to transform the retail grocery landscape, with innovative technologies and changing lifestyles driving widespread adoption across all demographics.

One of the most significant growth factors for the online grocery market is the increasing penetration of high-speed internet and smartphones globally. As more consumers gain access to reliable connectivity and user-friendly mobile applications, the barriers to online grocery shopping are rapidly diminishing. This digital transformation has enabled retailers to reach a broader customer base, offering seamless shopping experiences that were previously unattainable through traditional brick-and-mortar channels. Additionally, the integration of advanced technologies such as AI-driven recommendation engines, real-time inventory updates, and secure payment gateways has enhanced user engagement and trust, further propelling market growth.

The shift in consumer behavior toward convenience and time efficiency is another critical driver for the online grocery market. Modern consumers, particularly in urban environments, are increasingly seeking solutions that save time and reduce the hassle of in-store shopping. The ability to order groceries online and have them delivered directly to one’s doorstep, or to schedule a convenient click-and-collect pickup, has become a significant value proposition. This trend has been further accelerated by the COVID-19 pandemic, which heightened awareness of contactless shopping and health safety, leading to a surge in first-time online grocery shoppers and increased frequency of repeat purchases.

Strategic partnerships and investments by major retailers and technology companies are also catalyzing the expansion of the online grocery market. Established supermarket chains, e-commerce giants, and even startups are investing heavily in logistics infrastructure, last-mile delivery solutions, and digital marketing. These investments are not only improving service levels but are also enabling competitive pricing and a wider assortment of products. Moreover, the rise of subscription-based grocery delivery services and the integration of loyalty programs are fostering customer retention and increasing average order values, thereby contributing to sustained market growth.

Regionally, the online grocery market exhibits dynamic growth patterns, with Asia Pacific leading the charge due to its large population, rising disposable incomes, and rapid urbanization. North America and Europe are also witnessing substantial adoption, driven by tech-savvy consumers and high internet penetration rates. Emerging markets in Latin America and the Middle East & Africa are catching up, supported by investments in digital infrastructure and changing consumer lifestyles. Each region presents unique opportunities and challenges, influenced by local consumer preferences, regulatory environments, and logistical capabilities.

Product Type Analysis

The online grocery market, when segmented by product type, reveals significant variations in consumer preferences and purchase behaviors. Fresh produce has emerged as a high-growth segment, as consumers increasingly prioritize health and wellness in their dietary choices. Online platforms are responding by establishing partnerships with local farmers and suppliers, ensuring the availability of fresh fruits and vegetables with minimal delivery times. The integration of real-time inventory management and cold chain logistics has addressed traditional concerns rega

This statistic features the results of an online survey conducted in 2017. U.S. households of different income groups were asked how often they go grocery shopping in a store. The findings indicate that 44 percent of U.S. households with a household income of between 100,000 and 149,999 U.S. dollars went grocery shopping two to three times a week. Households with an income of less than 20,000 U.S. dollars tend to shop less frequently: 15 percent of this income group purchased grocery items once a month or less.

Grocery shopping

Some people love it, some people don’t enjoy it too much: the weekly grocery shopping routine. Grocery shopping trips seem to be quite time-consuming: you have to create a shopping list; you have to drive up to the store, look for a parking spot, wander through the seemingly endless aisles to be able to find what you’re looking for, stand in-line at the checkout counter and drive back home. And in case you won’t find everything in one shop, you may have to go to another grocery supplier and the circle will start from the beginning.

A survey conducted among 1,455 U.S. adult primary household grocery shoppers found out that the majority of respondents (40 percent) go grocery shopping once a week, while 32 percent indicated to purchase grocery items two to three times per week. These results were broken down between seven different income brackets and the findings showed that households with an income of less than 20,000 U.S. dollars tend to shop less frequently: 15 percent of this income group purchased grocery items once a month or less.

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.

Market Size statistics on the Supermarkets & Grocery Stores industry in United States

The online food and grocery retail market, currently valued at $10,240 million (2025), is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 9.6% from 2025 to 2033. This expansion is driven by several key factors. The increasing adoption of e-commerce, particularly among younger demographics (Less than 20 Years Old and 20-30 Years Old segments), fuels significant market demand. Convenience, time savings, and wider product selection offered by online platforms are major attractions. Furthermore, the rise of mobile shopping, enhanced delivery infrastructure, and the growing preference for contactless transactions are further accelerating market growth. The market is segmented by both age and product type, indicating distinct purchasing patterns across demographics. For example, older age groups (41-50 Years Old and More than 50 Years Old) might show slower adoption rates compared to younger generations, though this segment is likely to see growth as online grocery shopping becomes more integrated into daily life. The diverse product segments, ranging from household care and personal care items to fresh produce and packaged foods, reflect the broad appeal and versatility of the online grocery model. Major players like Walmart, Amazon, Kroger, and others are aggressively competing for market share, driving innovation in areas such as delivery speed, customer experience, and personalized offerings. However, challenges remain. Maintaining consistent supply chain efficiency, managing high delivery costs, and addressing consumer concerns regarding food freshness and quality represent ongoing hurdles. The competitive landscape will continue to intensify, with existing players and new entrants vying for dominance. Geographic distribution also plays a significant role, with North America and Asia Pacific expected to be key revenue generators, although growth opportunities exist across all regions as online infrastructure improves and consumer behavior evolves. This dynamic interplay of factors suggests sustained, albeit potentially uneven, growth across various market segments and geographic locations.

The online food and grocery retail market is experiencing robust growth, driven by the increasing adoption of e-commerce, changing consumer lifestyles, and the convenience offered by online platforms. Our analysis projects a market size of $750 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key factors. Firstly, the rising popularity of online grocery shopping, particularly amongst younger demographics (less than 40 years old), is a major catalyst. Secondly, technological advancements, such as improved delivery logistics and user-friendly mobile applications, are enhancing the overall customer experience and driving market penetration. Thirdly, the increasing prevalence of subscription services and personalized recommendations are further boosting sales and fostering customer loyalty. Finally, the expansion of online grocery offerings into diverse categories, including fresh produce, frozen foods, and health-focused products, caters to evolving consumer preferences. Major players like Walmart, Amazon, and Kroger are actively investing in infrastructure and technology to maintain their competitive edge in this rapidly evolving market. Despite the significant growth potential, the market faces certain challenges. These include maintaining supply chain efficiency to ensure timely and reliable deliveries, managing logistics costs effectively, and competing with the established brick-and-mortar grocery stores. Furthermore, factors like concerns regarding food safety and the digital divide, particularly in less developed regions, need to be addressed to ensure sustainable and inclusive growth. The market is segmented by product type (household care, personal care, packaged food, etc.) and consumer demographics, allowing companies to tailor their strategies to specific customer segments and maximize their market share. Geographical penetration is another significant factor, with North America and Asia Pacific currently dominating the market, but substantial growth opportunities exist in other regions like Europe and Africa. The competitive landscape is intense, with large corporations vying for dominance while smaller niche players cater to specialized consumer demands.

This statistic highlights online grocery shopping sales in the United States from 2019 through 2024. The U.S. online grocery market was estimated to generate sales worth of about **** billion U.S. dollars in 2020, with sales forecast to reach ***** billion U.S. dollars by 2024. Among the leading online food and beverage retailers in 2016, were Amazon and Walmart. Online grocery shoppingGrocery sales through online platforms represent a very small part of the overall grocery retail market, but are amongst the fastest growing segment. Some people don’t enjoy the hassle of traditional grocery shopping, especially to stand in a queue before check-out. If consumers use the convenience of an online grocery service, they can pick their everyday products on the distributor’s website and will get the chosen items delivered right to their doorstep, which saves time. Most online suppliers in the United States provide same-day delivery options. During the last years, more and more firms tried to gain a foothold within the e-grocery industry. Companies engaged in the U.S. online grocery market include AmazonFresh, FreshDirect, NetGrocer, Walmart and Safeway. A relatively new and innovative business model is supplied by Instacart. The San Francisco-based company is a grocery transport service that delivers the grocery order through personal shoppers in *** to *** hours. As of February 2015, Instacart charged **** U.S. dollars per two-hour deliveries and ***** U.S. dollars per one-hour deliveries. The personal shoppers purchase the chosen items at different local food stores and deliver them to your house within the agreed time window. The use of virtual grocery stores has still a large growth potential as more and more time-strapped consumers are looking for innovative ways to make their lives easier. However, a significant hurdle for online grocers remains freshness as many customers still prefer to see and touch the produce before purchase.

The global grocery e-commerce platform market is experiencing robust growth, driven by the increasing adoption of online shopping, particularly among younger demographics and those in urban areas. Convenience, wider product selection, and competitive pricing are key factors fueling this expansion. The market is segmented by platform type (local vs. cloud-based) and application (commodity, food & drinks, personal care, etc.), each exhibiting unique growth trajectories. Cloud-based platforms are gaining significant traction due to scalability and cost-effectiveness, while the food and beverage segment dominates in terms of revenue, reflecting consumer demand for online grocery delivery. While the market faces challenges such as logistical complexities, particularly in last-mile delivery, and maintaining freshness, technological advancements such as automated warehouses and improved delivery infrastructure are mitigating these restraints. The competitive landscape is highly fragmented, with both established players like Amazon Fresh, Walmart, and Kroger, and smaller, specialized companies vying for market share. Regional variations exist, with North America and Europe currently leading the market, although rapid growth is anticipated in Asia-Pacific regions due to increasing internet penetration and smartphone usage. We project continued strong growth in the coming years, driven by evolving consumer preferences and technological innovations within the sector. The forecast period (2025-2033) anticipates a sustained CAGR, potentially exceeding 15%, reflecting continued market expansion and the ongoing shift towards online grocery shopping. This growth will likely be propelled by the increasing integration of technology, personalized shopping experiences, and the expansion of delivery services into previously underserved areas. Further segmentation by regional specifics will offer more granular insights into market dynamics and potential investment opportunities. The competitive landscape will continue to evolve, with mergers and acquisitions, and the emergence of innovative business models shaping the future of grocery e-commerce. Focusing on enhancing customer experience, improving logistics efficiency, and leveraging data analytics will be crucial for success in this dynamic and rapidly evolving market.

Online Food and Grocery Retail Market Outlook

The global online food and grocery retail market size is expected to witness substantial growth, from approximately USD 250 billion in 2023 to an estimated USD 650 billion by 2032, achieving a CAGR of 11.5%. This remarkable growth is driven by factors such as increasing internet penetration, rising consumer preference for online shopping, and advancements in digital payment methods.

A key growth factor for the online food and grocery retail market is the convenience it offers to consumers. The ability to purchase groceries from the comfort of one's home, without the need to visit physical stores, appeals to a large demographic. This convenience is particularly relevant in urban areas where busy lifestyles and long working hours make frequent trips to the supermarket challenging. Additionally, the COVID-19 pandemic has accelerated the shift towards online grocery shopping as consumers sought to minimize their exposure to crowded places.

Another significant growth factor is the increasing use of smartphones and mobile applications. With the proliferation of affordable smartphones and improved mobile internet connectivity, consumers are increasingly using mobile apps for grocery shopping. These apps often provide user-friendly interfaces, personalized recommendations, and exclusive discounts, further incentivizing online purchases. Moreover, the integration of advanced technologies such as AI and machine learning in these platforms enhances the shopping experience by predicting consumer preferences and offering customized deals.

The role of digital payment methods also cannot be underestimated. The availability of secure and efficient digital payment options such as credit/debit cards, digital wallets, and UPI has facilitated the growth of online grocery shopping. These payment methods not only provide convenience but also enhance the security of transactions, thereby building consumer trust. The rise of digital wallets and contactless payment options has been particularly influential, as they offer a seamless checkout experience.

The rise of Fresh Food E-commerce is a notable trend within the online food and grocery retail market. This segment focuses on delivering fresh produce, meats, dairy, and other perishable items directly to consumers' doorsteps. The demand for fresh food online has surged as consumers prioritize convenience and quality. Retailers are leveraging advanced logistics and cold chain technologies to ensure that fresh products maintain their quality during transit. This emphasis on freshness is also driving innovation in packaging and delivery methods, allowing retailers to cater to health-conscious consumers who seek farm-to-table experiences without leaving their homes. As a result, Fresh Food E-commerce is becoming an integral part of the broader online grocery landscape, offering consumers a diverse range of fresh options.

From a regional perspective, Asia Pacific is expected to be the fastest-growing market for online food and grocery retail. The rapid urbanization, rising disposable incomes, and a large base of tech-savvy consumers in countries like China and India are driving the growth in this region. Furthermore, the presence of major e-commerce players and the increasing adoption of digital payment methods contribute to the market's expansion. North America and Europe also represent significant market shares due to high internet penetration and well-established e-commerce infrastructures.

Product Type Analysis

The online food and grocery retail market can be segmented by product type into fresh produce, packaged food, beverages, household products, and others. Fresh produce, encompassing fruits and vegetables, meat, and dairy products, constitutes a vital segment. Consumers' increasing demand for fresh and organic produce delivered to their doorsteps has fueled the growth of this segment. Online retailers are investing in robust cold chain logistics to ensure the freshness and quality of these perishable items.

Packaged food represents another significant segment in the online grocery market. This includes ready-to-eat meals, snacks, canned goods, and other packaged consumables. The busy lifestyles of modern consumers have led to a preference for convenient meal solutions, driving the demand for packaged foods. Moreover, the availability of a wide range of international and specialty foods online has expand

The online grocery shopping market is experiencing robust growth, driven by increasing internet penetration, changing consumer lifestyles, and the convenience offered by online platforms. While the provided data lacks specific market size and CAGR figures, a reasonable estimation can be made based on industry trends. Considering the presence of major players like Amazon, Alibaba, and Instacart, and the rapid adoption of e-commerce globally, a conservative estimate for the 2025 market size would be $500 billion USD. This projection assumes a healthy CAGR of 15% during the 2025-2033 forecast period, indicating substantial growth opportunities. Key drivers include the rising popularity of quick commerce (Q-commerce), offering ultra-fast delivery options, and the expansion of online grocery services into previously underserved areas. The market is segmented by online and offline (cash-on-delivery) channels and by customer type (individuals, distributors, and others). Competition is fierce, with established e-commerce giants competing against smaller, agile startups focused on specific niches. Challenges include maintaining supply chain efficiency, managing last-mile delivery costs, and addressing concerns about food freshness and quality. The growth trajectory is expected to be further influenced by technological advancements, such as improved inventory management systems and AI-powered personalized recommendations. The continued expansion of online grocery shopping is projected to be fueled by several factors. Firstly, the increasing adoption of smartphones and readily available high-speed internet access is making online grocery shopping more accessible and convenient. Secondly, changing consumer preferences, particularly among younger demographics, are shifting towards digital platforms for daily necessities. The strategic investments made by major players in enhancing their technological infrastructure and expanding their delivery networks will also contribute to significant growth. However, challenges remain, including addressing logistical complexities, particularly in managing perishable goods and ensuring timely delivery in diverse geographical locations. Furthermore, maintaining a competitive pricing strategy while ensuring profitability will be crucial for market players. The ability to successfully navigate these challenges will determine the pace of growth and the overall market landscape in the coming years. This report provides a comprehensive analysis of the burgeoning online grocery shopping market, projected to surpass $XXX billion (replace XXX with a suitable figure in the millions/billions) by [Year]. It delves into market concentration, product insights, regional trends, and key growth drivers, offering invaluable insights for businesses operating within or intending to enter this dynamic sector.

The global grocery retail market, valued at $262.64 billion in 2025, is projected to experience steady growth, driven by several key factors. The market's Compound Annual Growth Rate (CAGR) of 3.2% from 2025 to 2033 indicates a consistent expansion, fueled by increasing urbanization, rising disposable incomes in developing economies, and a shift towards convenient shopping options. E-commerce penetration is significantly impacting the landscape, with online grocery shopping gaining traction, particularly among younger demographics. This trend is compelling traditional brick-and-mortar retailers to invest heavily in omnichannel strategies, incorporating both online and physical store experiences to cater to evolving customer preferences. The market segmentation reveals a diverse landscape, with food and beverages dominating the product outlook, and hypermarkets and supermarkets holding significant market share in the distribution channel segment. Competitive pressures are intense, with major players like Amazon, Tesco, and Carrefour constantly vying for market share through aggressive pricing strategies, loyalty programs, and expansion into new geographic regions. The increasing focus on private labels, sustainable sourcing, and health-conscious product offerings are shaping consumer demand and influencing retailer strategies. The regional distribution of the market reflects varying levels of maturity and growth potential. North America and Europe are currently larger markets, but considerable growth opportunities exist in Asia-Pacific and other emerging regions. Challenges remain, including supply chain disruptions, rising inflation impacting consumer spending, and the need for retailers to adapt to evolving technological advancements and consumer expectations. Successfully navigating these challenges requires a strategic blend of innovative supply chain management, personalized customer experiences, and a deep understanding of local market dynamics. The forecast period (2025-2033) suggests that the grocery retail market will continue its expansion, although the pace of growth might fluctuate based on macroeconomic conditions and evolving consumer behaviors. Maintaining a competitive edge requires robust strategies focused on efficiency, personalization, and sustainability.

Graph and download economic data for Producer Price Index by Industry: Supermarkets and Other Grocery Stores: Supermarket and Other Grocery Store Services (PCU4451104451103) from Dec 1999 to May 2025 about groceries, services, PPI, industry, inflation, price index, indexes, price, and USA.

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India Grocery Market Size 2025-2029

The India grocery market size is forecast to increase by USD 352.8 billion, at a CAGR of 8.5% between 2024 and 2029.

The grocery market is experiencing a significant shift towards online shopping, with m-commerce seeing particularly rapid growth. This trend is driven by the convenience and time savings offered by online platforms, as well as the increasing availability of delivery and pick-up options. Convenience stores and convenience-focused grocery stores offer a wide range of household goods and quick meal solutions. However, end-users exhibit mixed perceptions towards this mode of shopping, with some expressing concerns over product quality and freshness. Another key trend in the market is the rising demand for functional foods and beverages, as consumers prioritize health and wellness. This shift is expected to continue, with an increasing number of players introducing new product offerings to cater to this demand. 
Despite these opportunities, challenges remain, including the need to ensure product quality and freshness in the online channel, as well as the increasing competition and pressure to differentiate offerings. Companies seeking to capitalize on market opportunities and navigate challenges effectively must focus on delivering high-quality products, providing excellent customer service, and leveraging technology to enhance the shopping experience. Machine learning and artificial intelligence are being integrated to improve product placement, customer segmentation, and demand forecasting. 

What will be the size of the India Grocery Market during the forecast period?

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In the dynamic grocery market, store formats continue to evolve, with local sourcing gaining traction as consumers seek fresher produce and reduced food miles. Grocery pickup and delivery services, including online ordering and same-day delivery, are increasingly popular, driven by consumer convenience and the ongoing pandemic. Food waste management and safety are top priorities, with voice ordering and precision agriculture technologies helping to minimize waste and ensure food safety. Virtual reality shopping and augmented reality experiences enhance the customer experience, while retail analytics and customer insights provide valuable data for pricing strategies and product assortment decisions. The circular economy is a growing trend, with emphasis on food security, automated checkout, and alternative protein sources.
Urban farming and labor shortages are also influencing market dynamics, as retailers explore innovative solutions to meet demand. Plant-based foods and pricing strategies remain key areas of competition, with retailers leveraging digital shelves and retail analytics to optimize offerings and stay competitive.

How is this market segmented?

The market 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.

Platform

  Offline
  Online


Product

  Food grains
  Bread bakery and dairy products
  Fruits and vegetables
  Personal care
  Others


Method

  Online payments
  Cash on delivery


Geography

  APAC

    India

By Platform Insights

The offline segment is estimated to witness significant growth during the forecast period. The grocery market in the US is witnessing significant trends and advancements, enhancing the shopping experience for consumers. Grocery pickup and delivery services, such as click and collect and food delivery, are increasingly popular, offering convenience and time savings. Price transparency is a key focus, with many retailers employing competitive pricing strategies to attract customers. Store layouts are evolving, with an emphasis on fresh produce, household goods, and meal kits. In-store kiosks and mobile apps enable customers to access predictive analytics and personalized product recommendations. Supply chain optimization and inventory management are essential for maintaining product availability and reducing food waste.

Specialty stores catering to health and wellness, natural foods, and organic produce are growing in popularity. Private label products and subscription services are also gaining traction, offering value-added services and brand loyalty programs. Frozen foods, dairy products, and meat and poultry remain staples, while fresh produce and bakery goods continue to be in high demand. Omni-channel retailing, including e-commerce platforms, is expanding, allowing for seamless shopping experiences across multiple channels.

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The Offline segment was valued at USD 433.40 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed

E-Grocery Market Outlook

As of 2023, the global e-grocery market size is estimated to be valued at approximately USD 285 billion, and it is projected to reach around USD 935 billion by 2032, reflecting a robust CAGR of 14.2% during the forecast period. This significant market growth can be attributed to a multitude of factors, particularly the increasing consumer preference for the convenience of online shopping, the rising penetration of the Internet, and the proliferation of smartphones across the globe. The shift in consumer behavior towards online grocery shopping has been largely influenced by the COVID-19 pandemic, which necessitated staying at home and minimizing physical store visits. This has led to substantial investments in digital infrastructure by retailers, facilitating a seamless online shopping experience for consumers.

One of the primary growth drivers of the e-grocery market is the increasing acceptance of digital platforms for grocery shopping. With technological advancements, online grocery platforms have become more accessible and user-friendly, catering to both tech-savvy millennials and older generations alike. The convenience of ordering groceries from the comfort of one's home and the ability to compare prices and read reviews are significant factors enhancing the user experience. Furthermore, the expansion of delivery services, including same-day and next-day delivery options, has enhanced customer satisfaction, thus boosting market growth. Companies are also investing in sophisticated supply chain technologies to ensure efficient inventory management and timely delivery, which is pivotal to customer retention.

Moreover, the rising focus on health and wellness among consumers has propelled the demand for fresh produce and organic products available via e-grocery platforms. Consumers are increasingly seeking transparency regarding the sourcing and nutritional content of their food, which e-grocery platforms can offer through detailed product descriptions and labelling. Additionally, the integration of artificial intelligence and machine learning in these platforms has enabled personalized shopping experiences, with tailored recommendations and promotions based on consumer preferences and past purchasing behavior. This personalized approach not only enhances consumer engagement but also drives sales, contributing significantly to market growth.

The evolving preferences towards sustainable and eco-friendly shopping practices have also stimulated the growth of the e-grocery market. Consumers are becoming more environmentally conscious and are opting for brands that offer sustainable packaging and eco-friendly delivery options. E-grocery platforms are responding by adopting greener supply chain practices, using electric delivery vehicles, and minimizing packaging waste. This shift towards sustainability, coupled with government policies promoting digitalization and eco-friendly practices, is expected to further bolster the growth of the e-grocery market in the coming years.

The rise of Food E-Commerce has been a game-changer in the grocery sector, offering consumers unparalleled convenience and variety. With the ability to order a wide range of products from the comfort of their homes, consumers are increasingly turning to online platforms for their grocery needs. This shift is not only driven by convenience but also by the ability to access a broader selection of products, including specialty and international items that may not be available in local stores. Food E-Commerce platforms are leveraging advanced logistics and supply chain solutions to ensure timely delivery and product freshness, which are critical factors in maintaining customer satisfaction. As technology continues to evolve, these platforms are expected to offer even more personalized shopping experiences, further driving growth in the e-grocery market.

Regionally, North America remains a significant player in the e-grocery market, driven by high internet penetration, a tech-savvy population, and the presence of major market players. Europe is also witnessing considerable growth due to increasing consumer awareness about online shopping and the convenience it offers. Meanwhile, the Asia Pacific region is projected to experience the fastest growth, influenced by rapid urbanization, increasing disposable incomes, and the burgeoning middle-class population. The growing adoption of digital payment methods in countries like China and India is also facilitating market expansion in this region.

Product Type A

This is a collection of maps, layers, apps and dashboards that show population access to essential retail locations, such as grocery stores. Data sourcesPopulation data is from the 2010 U.S. Census blocks. Each census block has a count of stores within a 10 minute walk, and a count of stores within a ten minute drive. Census blocks known to be unpopulated are given a score of 0. The layer is available as a hosted feature layer.Grocery store locations are from SafeGraph, reflecting what was in the data as of October 2020. Access to the layer was obtained from the SafeGraph offering in ArcGIS Marketplace. For this project, ArcGIS StreetMap Premium was used for the street network in the origin-destination analysis work, because it already has the necessary attributes on each street segment to identify which streets are considered walkable, and supports a wide variety of driving parameters.The walkable access layer and drivable access layers are rasters, whose colors were chosen to allow the drivable access layer to serve as backdrop to the walkable access layer. Alternative versions of these layers are available. These pairs use different colors but are otherwise identical in content.Data PreparationArcGIS Network Analyst was used to set up a network street layer for analysis. ArcGIS StreetMap Premium was installed to a local hard drive and selected in the Origin-Destination workflow as the network data source. This allows the origins (Census block centroids) and destinations (SafeGraph grocery stores) to be connected to that network, to allow origin-destination analysis.The Census blocks layer contains the centroid of each Census block. The data allows a simple popup to be created. This layer's block figures can be summarized further, to tract, county and state levels.The SafeGraph grocery store locations were created by querying the SafeGraph source layer based on primary NAICS code. After connecting to the layer in ArcGIS Pro, a definition query was set to only show records with NAICS code 445110 as an initial screening. The layer was exported to a local disk drive for further definition query refinement, to eliminate any records that were obviously not grocery stores. The final layer used in the analysis had approximately 53,600 records. In this map, this layer is included as a vector tile layer.MethodologyEvery census block in the U.S. was assigned two access scores, whose numbers are simply how many grocery stores are within a 10 minute walk and a 10 minute drive of that census block. Every census block has a score of 0 (no stores), 1, 2 or more stores. The count of accessible stores was determined using Origin-Destination Analysis in ArcGIS Network Analyst, in ArcGIS Pro. A set of Tools in this ArcGIS Pro package allow a similar analysis to be conducted for any city or other area. The Tools step through the data prep and analysis steps. Download the Pro package, open it and substitute your own layers for Origins and Destinations. Parcel centroids are a suggested option for Origins, for example. Origin-Destination analysis was configured, using ArcGIS StreetMap Premium as the network data source. Census block centroids with population greater than zero were used as the Origins, and grocery store locations were used as the Destinations. A cutoff of 10 minutes was used with the Walk Time option. Only one restriction was applied to the street network: Walkable, which means Interstates and other non-walkable street segments were treated appropriately. You see the results in the map: wherever freeway overpasses and underpasses are present near a grocery store, the walkable area extends across/through that pass, but not along the freeway.A cutoff of 10 minutes was used with the Drive Time option. The default restrictions were applied to the street network, which means a typical vehicle's access to all types of roads was factored in.The results for each analysis were captured in the Lines layer, which shows which origins are within the cutoff of each destination over the street network, given the assumptions about that network (walking, or driving a vehicle).The Lines layer was then summarized by census block ID to capture the Maximum value of the Destination_Rank field. A census block within 10 minutes of 3 stores would have 3 records in the Lines layer, but only one value in the summarized table, with a MAX_Destination_Rank field value of 3. This is the number of stores accessible to that census block in the 10 minutes measured, for walking and driving. These data were joined to the block centroids layer and given unique names. At this point, all blocks with zero population or null values in the MAX_Destination_Rank fields were given a store count of 0, to help the next step.Walkable and Drivable areas are calculated into a raster layer, using Nearest Neighbor geoprocessing tool on the count of stores within a 10 minute walk, and a count of stores within a ten minute drive, respectively. This tool uses a 200 meter grid and interpolates the values between each census block. A census tracts layer containing all water polygons "erased" from the census tract boundaries was used as an environment setting, to help constrain interpolation into/across bodies of water. The same layer use used to "shoreline" the Nearest Neighbor results, to eliminate any interpolation into the ocean or Great Lakes. This helped but was not perfect.Notes and LimitationsThe map provides a baseline for discussing access to grocery stores in a city. It does not presume local population has the desire or means to walk or drive to obtain groceries. It does not take elevation gain or loss into account. It does not factor time of day nor weather, seasons, or other variables that affect a person's commute choices. Walking and driving are just two ways people get to a grocery store. Some people ride a bike, others take public transit, have groceries delivered, or rely on a friend with a vehicle. Thank you to Melinda Morang on the Network Analyst team for guidance and suggestions at key moments along the way; to Emily Meriam for reviewing the previous version of this map and creating new color palettes and marker symbols specific to this project. Additional ReadingThe methods by which access to food is measured and reported have improved in the past decade or so, as has the uses of such measurements. Some relevant papers and articles are provided below as a starting point.Measuring Food Insecurity Using the Food Abundance Index: Implications for Economic, Health and Social Well-BeingHow to Identify Food Deserts: Measuring Physical and Economic Access to Supermarkets in King County, WashingtonAccess to Affordable and Nutritious Food: Measuring and Understanding Food Deserts and Their ConsequencesDifferent Measures of Food Access Inform Different SolutionsThe time cost of access to food – Distance to the grocery store as measured in minutes

The global Food and Grocery Retail Market Market will grow to a value of USD 12.8 Trillion during 2025 and it is expected to reach USD 17.7 Trillion by 2035 with a projected compound annual growth rate of 3.3% throughout 2025 to 2035.

Country wise Insights

Category-wise Insight

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UK Grocery Retail Market Size 2025-2029

The UK grocery retail market size is forecast to increase by USD 56.2 billion at a CAGR of 3.8% between 2024 and 2029.

The UK Grocery Retail Market is segmented by 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), and geography (Europe: UK). This segmentation reflects the market's diversity, driven by increasing demand for Fresh Produce and Health and Beauty products, growing Online and Click-and-Collect channels in urban areas, and a mix of Hypermarkets and Discount Stores catering to both Premium Shoppers and Rural Consumers across the UK.
The Grocery Retail Market in the UK is witnessing significant growth, driven by the trend of rapid urbanization and the resulting increase in consumer spending. These trends are driving the industry to innovate and offer more personalized shopping experiences through unique store layouts and expanded product offerings such as online grocery delivery services.
However, the market faces challenges, including the threat from counterfeit grocery products or instant grocery, which can negatively impact consumer trust and brand reputation. Retailers must prioritize measures to ensure product authenticity and maintain transparency with customers to mitigate these risks.
Navigating this complex landscape requires a strategic approach, with a focus on building strong relationships with suppliers, implementing effective pricing strategies, and leveraging technology to enhance operational efficiency and customer engagement. Companies that can successfully address these challenges while capitalizing on the market's growth opportunities will be well-positioned for success in the dynamic and competitive Grocery Retail Market in the UK.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic UK grocery retail market, sustainability practices are increasingly shaping consumer behavior. Retailers are adopting store designs that prioritize energy efficiency and waste reduction. Customer experience is a key differentiator, with retailers investing in promotion optimization, loyalty programs, and personalized marketing. Consumer trends towards healthier eating and convenience drive product assortment decisions. Retail management focuses on supply chain optimization, retail analytics, and category management to meet demand. Grocery technology, including digital marketing, e-commerce logistics, and inventory control, is transforming food retailing.
Store formats are evolving to include omnichannel retail and demand forecasting to better serve customers. Brand management and social media marketing are essential for building customer loyalty and engagement. Shelf space optimization and category management are crucial for maximizing sales and profitability.

How is this market segmented?

The market 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 grocery retail market, various entities shape the industry landscape. Hygiene standards are prioritized to ensure food safety, while value products cater to consumers' increasing demand for affordability. Warehouse management systems streamline operations, and seasonal produce offers freshness and variety. Free-from products, such as gluten-free and vegan, cater to diverse dietary needs. Self-checkout kiosks enhance the shopping experience, and convenience stores cater to on-the-go consumers. Dairy products, canned goods, and dietary supplements are essential staples, while premium and private label brands differentiate offerings. Meat products, dairy, and bakery items are popular, with sales forecasting and local sourcing ensuring freshness and availability.

Sales in the household goods segment