In 2025, the leading grocery stores in the United States held close to two thirds of the total industry market share. Walmart held the top position with **** percent, followed by Kroger at just under **** percent. Kroger Co. As one of the leading supermarket chains, Kroger has been become a favorite among consumers. Founded by Bernard Kroger in 1883, the company opened its first store in Cincinnati, Ohio and now operates more than ***** grocery retail stores in the United States. Grocery shopping behavior Among the diverse options for food acquisition, supermarkets and superstores are the preferred for consumers. Even though online grocery shopping is on the rise, it is still not up to par with warehouse clubs or discount stores. When it comes to frequency, grocery shopping trips have decreased since the early 2000s, perhaps to adapt to economic pressures like inflation, which has drastically changed the way consumers shop.

Grocery sales through e-commerce channels are expected to increase, due to changing consumer behavior after the pandemic. By 2026, projections for the United States showed that e-grocery will account for **** percent of total grocery sales.

Walmart was far and away the leader of the grocery industry in the United States in 2017, controlling over a quarter of the market. Kroger, the next largest grocer, was a distant second with a 10 percent market share. Over 40 percent of the grocery market is occupied by smaller retailers.

Retail giant

Walmart, headquartered in Bentonville, Arkansas, was founded by Sam Walton in 1962. The company not only has the largest share of the U.S. grocery market but is the largest retailer overall in the world. In 2017, Walmart’s revenue exceeded 500 billion U.S. dollars.

E-commerce giant

Second only to Amazon, a recent survey shows that Walmart is a leading player in the online grocery market space. Food and beverage e-commerce sales of the retailer topped out at over 1 billion dollars for the U.S. market in 2018. Growth of the company’s e-commerce sales have been extremely strong. Average quarterly growth over the last fiscal year was 40 percent.

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

This statistic illustrates the market share of grocery stores in Ireland for the 12 weeks ending January 23, 2022. Dunnes held the highest market share at 23.1 percent, followed by SuperValu at 22.2 percent.

Global Grocery Retail market size 2025 was XX Million. Grocery Retail Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Supermarkets and grocery store outcomes have been a tale of dealing with volatile prices at their purchase and sales points. The continued expansion of Aldi and Amazon has forced the two established industry giants, Woolworths and Coles, to remain price-competitive on both the physical store and online service fronts. To differentiate themselves from low-cost supermarkets, Coles and Woolworths have leant into attracting customers with convenient locations and expanded online shopping capabilities. These supermarket giants also rely on loyalty programs and promotions. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics firms like Palantir to optimise their marketing and operational processes. The ACCC and Treasury have taken the lead on addressing supplier and customer concerns relating to deceptive discounting practices and supplier contract bargaining exploitation. Supermarket and grocer revenue rose significantly following the COVID-19 outbreak. Household expenditure shifted towards retail industries amid restrictions on many services industries, with this imbalance remaining as high costs limit eating out. A combination of panic buying, along with the suspension of many specials and promotions in supermarkets, boosted grocery turnover at the beginning of the period, spiking revenue for 2019-20. This high benchmark at the start of the period has resulted in an industry correction and an annualised revenue decline of 0.6% to $148.7 billion over the five years to 2024-25. However, stores have largely managed to pass on upstream costs to customers, steadying their profit margins while suppliers and consumers bear the brunt of inflation-driven costs. Revenue is estimated to climb by 0.2% in 2024-25, reflecting the price-driven industry growth more indicative of the overall revenue trend that was drowned out by the pandemic revenue spike and correction. Supermarkets and grocery stores are set to continue performing well with industry revenue slated to climb at an annualised 0.4% over the five years through 2029-30 to $142.8 billion. Population growth and stubborn inflationary pressures, despite rate hikes, are set to keep store prices inching upwards. The results of the Treasury and the ACCC's investigations will shine a light on new regulations and potential penalties in store for large supermarkets. Eventually, when inflationary pressures subside and consumer sentiment returns to a positive level, supermarkets and grocers will be well-positioned to take advantage of consumer appetite for value-added and premium goods. Strong growth in online sales is set to continue.

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%

According to Cognitive Market Research, the global Grocery Store market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
The Retail Chain category is the fastest growing segment of the Grocery Store industry

Market Dynamics of Grocery Store Market

Key Drivers for Grocery Store Market

Growing Consumer Interest in Organic and Fresh Foods to Boost Market Growth

The market for grocery stores is significantly influenced by consumers' increased interest in fresh and organic foods. Organic vegetables, dairy, meats, and other minimally processed foods are becoming more and more popular among health-conscious consumers because of their perceived quality, environmental impact, and health benefits. Growing consumer awareness of pesticide use, genetically modified organisms, and additives has led them to favour products with organic labels and those supplied locally. In response, grocery stores have increased the variety of organic products they provide and established special areas, which draw in a devoted clientele and strengthen their brand identity. This change further supports the expansion of the grocery business by being in line with trends toward eco-friendly and sustainable practices.

Growth of Private Label Goods to Drive Market Growth

As private label items provide merchants with larger profit margins and competitive pricing, their expansion is a key factor in the grocery store industry. Store-branded private labels are popular among budget-conscious shoppers seeking high-quality substitutes for national brands. More control over pricing and production allows supermarkets and grocery stores to customize products to consumer tastes and new trends, such as organic or gluten-free options. Because consumers are drawn to unique products that aren't found anywhere else, private labels also encourage customer loyalty, which eventually improves store distinction and boosts total grocery sector sales.

Restraint Factor for the Grocery Store Market

Increasing Online Retailer Competition Will Limit Market Growth

The grocery store sector is being restrained by the growing competition from online retailers, as customers are attracted to the ease of online shopping and doorstep delivery. With their extensive assortment, affordable costs, and easy-to-use platforms that simplify shopping, e-commerce behemoths and grocery delivery services are alluring substitutes for conventional grocery stores. Due to this change, fewer people are visiting physical businesses, particularly younger, tech-savvy shoppers. Online merchants also frequently provide subscription-based discounts and tailored promotions, which help them gain market share. Digital trends are difficult for traditional grocery stores to adopt, which may hinder their expansion and financial success.

Impact of COVID-19 on the Grocery Store Market

The market for grocery stores was significantly impacted by the COVID-19 epidemic, which also accelerated the trend toward online grocery shopping and fundamentally altered consumer behaviour. The stockpiling of necessities caused temporary increases in demand due to lockdowns and health concerns. As more people cooked at home, sales of cleaning goods, personal care items, and pantry items climbed in many establishments. However, physical retailers had to deal with issues like labour shortages, supply chai...

The instant grocery market is experiencing rapid growth due to increasing urbanization, digitalization, and the growing popularity of convenience and time-saving services. The market size was valued at 674.52 million in 2025 and is projected to expand at a CAGR of 15.2% from 2025 to 2033. Key drivers include the rising demand for instant and convenient delivery, the proliferation of smartphones and mobile applications, the increasing penetration of e-commerce, and the growth of the online grocery market. Major trends shaping the market include the emergence of new technologies such as artificial intelligence (AI) and machine learning (ML), the development of innovative delivery models such as drones and autonomous vehicles, the expansion of product categories and the increasing focus on sustainability and eco-friendly packaging. Key segments in the market include service types such as on-demand delivery, scheduled delivery, and click-and-collect, product categories such as groceries, fresh produce, meat and seafood, beverages, household items, pet supplies, health and beauty products, and delivery times such as under 30 minutes, 30-60 minutes, and over 60 minutes. Notable companies operating in the market include Zapp, Buyk, JOKR, Glovoapp23, Fridge No More, Jokr, Dija, Gopuff, Uber Technologies Inc., Delivery Hero, Wolt, Weezy, Flink SE, Gorillas Technologies GmbH, Getir, and others.

The instant grocery market is highly concentrated, with a few major players accounting for a large share of the market. The market is characterized by innovation, with companies constantly developing new technologies and services to meet the needs of their customers. The impact of regulations on the market is still evolving, as many countries are still in the process of developing regulations for the sector. Product substitutes, such as meal kits and restaurant delivery, are also having an impact on the market. The end-user concentration is high, with a large number of consumers using instant grocery services. The level of M&A activity in the market is also high, as companies look to consolidate their position and expand their reach. Key drivers for this market are: Last-mile delivery optimization Expansion into underserved areas Partnerships with local retailers Data analytics for personalized marketing Integration with smart home devices. Potential restraints include: Key Market Dynamics of the Instant Grocery Market Rapid urbanization, rising disposable income Growing e-commerce adoption Increasing demand for convenience and timesaving Rise of quick commerce and micro fulfillment centers Environmental concerns and sustainable packaging initiatives.

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 Food Grocery Retail Market was valued at USD 674.52 million in 2025 and is projected to reach USD 922.77 million by 2033, exhibiting a CAGR of 3.38% during the forecast period. The growth of the market is attributed to the increasing population, rising disposable income, and changing consumer preferences for convenience and quality food products. The increasing urbanization and the expansion of retail stores are also contributing to the growth of the market. Supermarkets/hypermarkets and convenience stores are the dominant sales channels in the market, while fresh produce and packaged foods are the major product types. Key drivers of the market include the increasing adoption of online grocery shopping, the growing popularity of meal kits, and the rising demand for organic and natural food products. The market is also benefiting from the increasing awareness of the importance of healthy eating and the growing number of health-conscious consumers. The growing popularity of e-commerce and the increasing penetration of smartphones and the internet are also driving the growth of the market. However, the market is facing challenges such as the rising costs of food production and transportation, the increasing competition from non-traditional retailers, and the growing pressure on profit margins. Key drivers for this market are: 1. E-commerce Expansion 2. Private Label Growth 3. Health and Wellness Focus 4. Convenience and Delivery Services 5. Sustainability Initiatives . Potential restraints include: 1. Rising Urbanization 2. E-commerce Penetration 3. Health-conscious Consumers 4. Growing Demand for Convenience 5. Technological Advancements .

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.

Attributes	Description
Estimated Global Industry Size (2025E)	USD 12.8 Trillion
Projected Global Industry Value (2035F)	USD 17.7 Trillion
Value-based CAGR (2025 to 2035)	3.3%

Country wise Insights

Countries	CAGR 2025 to 2035
USA	2.7%
Germany	2.2%
India	4.2%

Category-wise Insight

Segment	Value Share (2025)
Fresh Food (Product Type)	38%

Segment	Value Share (2025)
Supermarket (Sales Channel)	63%

Snapshot img

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

Global Food And Grocery Retail market size is expected to reach $14586.54 billion by 2029 at 3.4%, segmented as by fresh food, fruits and vegetables, meat and poultry, dairy products, bakery items

The Zero Waste Grocery Stores Market is Segmented by Store Format (Stand-Alone Zero-Waste Stores, In-Store Refill Corners and More), Product Category (Food Staples, Fresh Produce and More), Packaging Model (Bulk Dry Dispensing, Liquid Refill Stations and More), Distribution Channel (Offline and Online), Consumer Demographic ( Millennials, Generation Z and More), Geography ( North America, South America, and More).

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. .

Explore insights into the Indonesia Online Grocery Market was USD 3.3 Billion in 2023 and is projected to grow at a CAGR of 23.5% (2024-32). Discover key drivers such as internet penetration, smartphone adoption, and tech advancements like voice ordering and drone delivery, propelling the market's expansion

The online grocery market will grow from $561.3 Bn in 2025 to $887.7 Bn by 2035 at a 22.1% CAGR, driven by demand for convenience and fast home delivery.

Report Attribute	Description
Market Size in 2025	USD 561.3 Billion
Market Forecast in 2035	USD 887.7 Billion
CAGR % 2025-2035	22.1%
Base Year	2024
Historic Data	2020-2024
Forecast Period	2025-2035
Report USP	Production, Consumption, company share, company heatmap, company production capacity, growth factors and more
Segments Covered	Product Type, By Platform, By End User
Regional Scope	North America, Europe, APAC, Latin America, Middle East and Africa
Country Scope	U.S., Canada, U.K., Germany, France, Italy, Spain, Benelux, Nordic Countries, Russia, China, India, Japan, South Korea, Australia, Indonesia, Thailand, Mexico, Brazil, Argentina, Saudi Arabia, UAE, Egypt, South Africa, Nigeria

Walmart captured a 17.3 percent share of the U.S. food and beverage market, making it the top food and beverage retailer in the United States in 2016. Kroger came in second place, with an 8.9 percent share of the market.

Walmart in the United States

Walmart is by far the biggest retailer in the United States. In 2017, the company generated about 374.8 billion U.S. dollars in retail sales in the United States. To put that figure in perspective, the e-commerce giant Amazon.com only had retail sales of about 103 billion U.S. dollars. Between 2015 and 2019, the U.S. segment of Walmart has experienced positive and increasingly larger sales growth rates. Between 2018 and 2019, Walmart U.S. sales increased by 3.7 percent.

U.S. Supermarkets

As of 2018, there were about 38,307 supermarkets in the United States. Most of these supermarkets are categorized as conventional supermarkets. Some other common types of supermarkets are supercenters, limited assortment supermarkets, and natural/gourmet food markets. About 50 percent of all U.S. supermarket sales are attributed to the perishables department. This department includes meat, fresh produce, and dairy, among other categories.