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.

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 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%

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.

Online grocery shopping has become increasingly popular among shoppers since the COVID-19 pandemic, which spurred consumers to purchase their supermarket goods through the internet when faced with lockdowns and stay-home advisories. In 2021, the online food and grocery sales in the United Kingdom amounted to about ** billion British pounds. That figure was forecast to increase to nearly ** billion by 2025. Post-pandemic slowdown despite new shopping habits While online grocery still is expected to generate billions in revenue, growth of the market is set to slow down significantly. As official regulation surrounding the pandemic has ended, the high demand for online grocery ordering has lowered in turn. However, many consumers in 2022, particularly those of higher ages, still cited that avoiding crowds and risk of infection at physical stores was a strong reason for ordering their groceries online. Another popular reason for online grocery shoppers was due to having no time to go to the store themselves. Not the perfect alternative While saving time and avoiding crowds are pros to buying groceries on the web, there are also inevitable cons with this method of grocery shopping. A 2022 survey revealed that too many substituted items, not being able to find suitable delivery times, and un-fresh groceries were the most common negative aspects to online grocery shopping in the UK. These factors may be part of why nearly ** percent of shoppers bought their groceries primarily in-stores, and only partially online.

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

Snapshot img

Online Grocery Market Size 2025-2029

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

The market is experiencing significant growth, fueled by the increasing popularity and adoption of e-commerce platforms. This shift is driven by the convenience and time savings offered by shopping online, particularly among busy consumers. Another key trend in the market is the growing demand for functional food and beverages, as consumers prioritize health and wellness in their daily lives. However, the market also faces several challenges. One major obstacle is the end-user perception of online grocery shopping, which includes concerns over product quality, freshness, and the lack of tactile experience. Additionally, the complexity of managing perishable items and ensuring timely delivery adds to the operational challenges for retailers. To capitalize on market opportunities and navigate these challenges effectively, companies must focus on improving the online shopping experience, ensuring product quality, and implementing efficient logistics solutions. By addressing these issues, retailers can differentiate themselves in the competitive online grocery landscape and meet the evolving needs of health-conscious consumers.

What will be the Size of the Online Grocery 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.
Request Free SampleThe market continues to evolve, with innovative technologies and strategies shaping its dynamics. Email marketing automation and dynamic pricing algorithms are becoming standard tools for e-commerce grocery platforms, enabling personalized offers and competitive pricing. Online grocery reviews, a critical source of customer feedback, are analyzed through data analytics dashboards to improve product offerings and customer experience. Fraud detection systems and mobile apps with route optimization software ensure secure and efficient order fulfillment, while subscription box services offer convenience and customization. Digital marketing campaigns, search engine optimization, and social media marketing expand reach and engagement. Customer service chatbots and loyalty program management foster customer relationships, driving repeat purchases and increasing customer lifetime value. Industry growth is expected to reach double digits annually, with e-commerce grocery sales accounting for a significant share. For instance, a leading e-commerce grocery platform reported a 35% increase in sales during the last quarter. Cold chain logistics and real-time inventory tracking are essential components of a successful online grocery business, ensuring product quality and availability. Payment gateway integration and warehouse automation technology streamline transactions and operations, enhancing website conversion rates. Demand forecasting models and inventory management software optimize stock levels and reduce waste, while last-mile delivery optimization and online grocery delivery services provide seamless shopping experiences. Customer feedback analysis and demand forecasting models enable continuous improvement and adaptation to evolving consumer preferences.

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 essentialsOthersGeographyNorth AmericaUSCanadaEuropeFranceRussiaUKAPACChinaIndiaIndonesiaJapanSouth AmericaBrazilRest of World (ROW)

By Product Insights

The food products segment is estimated to witness significant growth during the forecast period.The market is experiencing significant growth, with the food products segment contributing substantially to the revenue generated from retail sales. Consumers prefer online channels for shopping food products due to several factors. These include the convenience and ease of access to retailer websites, swift delivery processes, integrated return policies, and a wide range of product options. Personalization engines and mobile apps enable quicker visits and offer customization and ease of use. Quality and originality checking metrics are available on web portals, ensuring consumer trust. Leading global packaged food and beverage producers, such as Nestle, Danone, PepsiCo, Mars, Coca-Cola, Kraft-Heinz, Abbott, and Mondelez, are present in the online retail space through their own websites and third-party retailers. This encourages consumers to shop for groceries online. Dyna

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

The Online Grocery Market Report is Segmented by Product Category (Fresh and Perishable Goods, Pantry Staples and Cooking Essentials, and Others), Delivery Model (Instant Delivery, Same-Day Delivery, Scheduled Delivery, Other Models), Platform Type (Own Website/App, Aggregator Platforms, Others), and Geography (North America, Europe, Asia-Pacific, and More). The Market Forecasts are Provided in Terms of Value (USD).

The online grocery market is experiencing robust growth, driven by increasing internet penetration, the convenience of home delivery, and changing consumer lifestyles. While precise figures for market size and CAGR are unavailable from the provided text, we can infer substantial expansion based on the involvement of major global players like Walmart, Amazon, and Carrefour. The market's value likely surpasses hundreds of billions of dollars globally, given the scale of these companies' operations in online grocery. The CAGR, while unspecified, is expected to be significantly above average for the retail sector, reflecting the sector’s rapid digital transformation. Key drivers include the rise of e-commerce, particularly among younger demographics, the expansion of quick-commerce options offering rapid delivery, and improved logistics and cold-chain infrastructure supporting the delivery of perishable goods. Emerging trends include personalized shopping experiences leveraging AI and data analytics, the integration of online and offline channels (omni-channel strategies), and the increasing popularity of subscription-based grocery services. However, challenges remain, such as maintaining the freshness of produce during delivery, managing high delivery costs, and addressing concerns about food safety and handling. The segmentation of the online grocery market reveals diverse applications, including everyday grocery shopping, meal kit delivery, and specialized niche products. Different product types, from fresh produce to packaged goods, cater to varying consumer preferences and needs. The competitive landscape is intensely dynamic, with both established grocery chains and tech giants vying for market share. Regional variations are significant, with North America and Europe currently leading in adoption, though rapid growth is anticipated in Asia-Pacific and other developing regions as digital infrastructure and purchasing power improve. The forecast period from 2025-2033 predicts continued high growth, fueled by ongoing technological advancements and shifting consumer habits. Despite potential constraints, the long-term outlook for the online grocery market remains exceptionally positive.

The Indonesia Online Grocery Market size is estimated to grow at a CAGR of around 24.7% during the forecast period 2024–30. The increasing popularity of technology-based solutions is a key trend shaping the growth of the Indonesia Online Grocery Market.

The Europe online grocery market size was valued at USD 66.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 440.3 Billion by 2033, exhibiting a CAGR of 23.4% from 2025-2033. The market is growing rapidly due to shifting consumer behavior, improved technology and user experience, significant innovation in logistics and supply chain, increasing variety of delivery models, and rising consumer demand for health and sustainability.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 66.3 Billion
Market Forecast in 2033	USD 440.3 Billion
Market Growth Rate (2025-2033)	23.4%

IMARC Group provides an analysis of the key trends in each segment of the Europe online grocery market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized 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 **** 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 Delivery Market Report is Segmented by Delivery Model (Retail Delivery, Quick Commerce, Meal-Kit Delivery), Platform Type (Pure-Play E-Grocery Platforms, Multi-Category Marketplaces, and More), Product Category (Meat and Seafood, Breakfast and Dairy Products, and More), Delivery Type (Scheduled Deliveries, Instant/On-demand Deliveries), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

India Online Grocery Market Outlook

According to our latest research, the global online grocery market size stood at USD 375.4 billion in 2024, with India contributing a significant share of USD 14.8 billion for the same year. The Indian online grocery market is expected to witness robust expansion, registering a compound annual growth rate (CAGR) of 22.3% from 2025 to 2033. By the end of 2033, the Indian market is forecasted to reach USD 115.6 billion, propelled by rapid digitalization, increasing urbanization, and evolving consumer lifestyles. The surge in demand for convenience, coupled with the proliferation of smartphones and internet connectivity, continues to be the primary growth driver for the online grocery sector in India.

The substantial growth of the India online grocery market is primarily attributed to the country’s burgeoning urban population and the rising adoption of digital platforms for everyday shopping. Urban consumers, especially millennials and working professionals, are increasingly seeking convenience and time-saving solutions, making online grocery shopping an attractive alternative to traditional brick-and-mortar stores. The pandemic has further accelerated this shift, as safety and hygiene concerns prompted more consumers to explore online channels for their grocery needs. Moreover, the expansion of e-commerce infrastructure and the entry of major players such as Reliance JioMart, BigBasket, and Amazon Pantry have significantly enhanced product assortment, service quality, and last-mile delivery capabilities, thus boosting market penetration across metro and tier I cities.

Another pivotal growth factor for the India online grocery market is the continuous innovation in delivery models and payment options. Companies are increasingly investing in advanced logistics, cold chain management, and real-time tracking systems to ensure faster and more reliable deliveries. Additionally, the introduction of flexible payment modes, including e-wallets, Unified Payments Interface (UPI), and Buy Now Pay Later (BNPL) options, has made the online shopping experience seamless and secure for a diverse consumer base. Subscription-based models, offering scheduled deliveries and exclusive discounts, are also gaining traction, particularly among households with predictable consumption patterns. These innovations are not only enhancing customer satisfaction but also fostering brand loyalty and long-term engagement.

The market’s growth trajectory is further strengthened by the increasing focus on personalized marketing and data-driven strategies. Online grocery platforms are leveraging artificial intelligence and machine learning to analyze consumer preferences, predict buying behavior, and tailor product recommendations. This data-centric approach enables companies to optimize inventory management, reduce wastage, and offer customized promotions, thus driving higher conversion rates and average order values. Furthermore, the integration of regional languages, voice search, and easy-to-navigate interfaces is making online grocery platforms more accessible to consumers in tier II and tier III cities, thereby expanding the market’s reach beyond urban centers.

Regionally, South India and West India are emerging as the fastest-growing markets, driven by higher digital literacy rates, greater smartphone penetration, and proactive state government initiatives to promote e-commerce. North India, led by metropolitan hubs such as Delhi NCR, continues to hold the largest share, thanks to its dense population and affluent consumer base. Meanwhile, East India is witnessing steady growth as companies intensify their outreach efforts and address logistical challenges unique to the region. The competitive landscape is becoming increasingly dynamic, with both established players and new entrants vying for market share through aggressive marketing, strategic partnerships, and localized offerings.

Product Type Analysis

The product type segment within the India online g

Online Grocery Market Outlook

The global online grocery market size was valued at approximately USD 285 billion in 2023 and is projected to reach USD 1,126 billion by 2032, registering a robust compound annual growth rate (CAGR) of 16.3% during the forecast period. This remarkable growth trajectory can be attributed to several factors, including the increasing penetration of the internet and smartphones, changing consumer preferences towards convenience, and the integration of advanced technologies in the retail sector. The growing trend of e-commerce, coupled with the need for contactless transactions heightened by the COVID-19 pandemic, has further propelled the demand for online grocery shopping. Consumers are increasingly seeking ease and efficiency in their shopping experiences, driving the market to expand its horizons rapidly.

One of the significant growth factors driving the online grocery market is the rising consumer preference for home delivery services, which has seen a remarkable surge post-pandemic. The convenience of ordering groceries online and having them delivered directly to the doorstep appeals significantly to time-constrained consumers, particularly in urban areas. This paradigm shift in consumer behavior has been supported by advancements in logistics and supply chain management, which allow for quicker and more reliable delivery times. Companies are constantly innovating their delivery models to cater to the increasing demand, thereby enhancing customer satisfaction and fostering market growth. Moreover, digital payment solutions have made transactions more seamless, further encouraging consumers to adopt online grocery shopping.

The proliferation of technology and digital platforms has played a pivotal role in the growth of the online grocery market. With the advent of mobile applications and user-friendly e-commerce websites, consumers now have greater access and flexibility in their shopping experiences. These platforms are equipped with features such as personalized recommendations, subscription services, and loyalty programs that enhance user engagement and retention. Furthermore, the integration of artificial intelligence and data analytics allows retailers to better understand consumer preferences and tailor their offerings accordingly. This technological evolution not only improves operational efficiency for retailers but also enriches the shopping experience for consumers, thereby driving market growth.

The emergence of the Grocery Delivery App has revolutionized the way consumers interact with the online grocery market. These apps provide a seamless interface for users to browse and purchase groceries from the comfort of their homes. With features such as real-time tracking, personalized shopping lists, and exclusive discounts, grocery delivery apps have become an integral part of the modern shopping experience. They cater to the growing demand for convenience and efficiency, allowing consumers to save time and effort while ensuring they receive fresh and high-quality products. The integration of payment gateways and loyalty programs within these apps further enhances user engagement, making them a preferred choice for tech-savvy shoppers.

Another critical factor contributing to the expansion of the online grocery market is the increasing awareness and adoption of sustainable practices among consumers. There is a growing trend towards eco-friendly packaging and sourcing of products, which aligns with the preferences of environmentally conscious consumers. Retailers are increasingly adopting sustainable practices in their operations to cater to this demand, thereby gaining a competitive edge in the market. Additionally, the rise of organic and locally sourced products within online grocery platforms is attracting health-conscious customers, creating new growth avenues for the market. This shift towards sustainability is expected to play a significant role in the market's expansion over the coming years.

Regionally, the online grocery market exhibits varying trends and growth dynamics. North America and Europe have historically been the frontrunners in adopting online grocery shopping, attributable to their advanced infrastructure and higher consumer purchasing power. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period, driven by the rapid digitalization and urbanization in countries like China and India. These regions are experiencing a burgeoning middle class with increasing disposable incomes, coupled with a growing internet user bas

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

Pages	70
Market Size
Forecast Market Size
CAGR
Fastest Growing Segment
Largest Market
Key Players

Snapshot img

India Online Grocery Market Size 2025-2029

The online grocery market in India size is forecast to increase by USD 11.02 billion at a CAGR of 21% between 2024 and 2029.

The online grocery market is witnessing significant growth due to the increasing popularity of e-commerce platforms and the convenience they offer. The trend toward functional foods and beverages, such as antioxidant-rich fruits and vegetables, coffee, tea, and spices, is driving demand in this market. However, challenges remain, including the need for efficient logistics and last-mile delivery solutions, advanced payment gateways, and effective packaging to maintain the freshness of perishable items like bread, cheese, and pet care products. E-commerce technology continues to evolve, with LED lights and smartphone apps enhancing the shopping experience. Dried fruits and nuts, personal care items, and a variety of other groceries are also readily available online. As consumers increasingly turn to digital payment methods for convenience and security, the online grocery market is poised for continued growth.

What will be the Size of the market During the Forecast Period?

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The online grocery market has experienced significant growth in recent years, fueled by urbanization, increasing internet penetration, and the widespread adoption of smartphones. This digital transformation has led to the emergence of various business models, including service portals, food-delivery platforms, and e-commerce portals, catering to consumers' convenience and time-saving benefits. Small-scale grocers have also joined the fray, leveraging virtual supermarkets and logistics solutions to compete with larger players. E-commerce platforms have become integral to this sector, offering payment gateways, last-mile delivery solutions, and promotional strategies such as subscription models and membership programs. Delivery options have evolved, with scheduled deliveries and real-time food preparation becoming increasingly popular. Overall, the online grocery market is poised for continued expansion, driven by the convenience and efficiency offered by digital platforms.

How is this market segmented and which is the largest segment?

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 products
  Non-food products


Type

  Online
  Cash on delivery


Platform

  Website
  Mobile


Geography

  India

By Product Insights

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

Online grocery sales have experienced significant growth due to urbanization and the increasing use of digital platforms for shopping. Consumers value the convenience and time-saving benefits of online grocery marketplaces, which offer a wide range of products from food grains and dairy products to fruits, vegetables, and specialty items. E-commerce portals and food-delivery platforms have disrupted traditional brick-and-mortar stores by providing customized and personalized shopping experiences. Quick commerce business models, such as those employed by companies like Instacart and Shipt, offer scheduled deliveries and subscription models, further enhancing the convenience factor. Small-scale grocers and local producers have also joined the online grocery market, expanding product offerings.

Swift delivery processes, integrated return policies, and easy digital payment methods, including cash on delivery and digital payments, add to the appeal of online grocery shopping. The internet and smartphones have made virtual supermarkets accessible to urban consumers, enabling price comparison and product selection from the comfort of their homes. E-commerce technology, including mobile applications, logistics, and payment gateways, streamline the shopping experience. Trust and security are ensured through promotional strategies and membership programs. Overall, the online grocery market offers a convenient and efficient solution for consumers seeking high-quality food products.

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Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast , partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the market.

Amazon.com Inc. - The company provides a selection of fresh produce, including fruits and vegetables, dairy products such as cheese, dry fruits, lentils, and home care items for purchase via its platform.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

The global e-grocery 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 often competitive pricing are key factors fueling this expansion. While the exact market size in 2025 is unavailable, considering a plausible CAGR of 15% (a conservative estimate based on recent market trends) and assuming a 2019 market size of $200 billion, the 2025 market size could be estimated at approximately $500 billion. The significant increase in online grocery shopping during the COVID-19 pandemic accelerated this trend, establishing a new baseline for consumer behavior. Key players like Amazon, Walmart, and Alibaba are aggressively investing in infrastructure and technology to enhance their e-grocery offerings, leading to increased competition and innovation. This competition benefits consumers through improved services, wider delivery options, and increasingly sophisticated online shopping experiences. However, challenges remain. Last-mile delivery logistics, maintaining the freshness of perishable goods, and managing efficient order fulfillment remain significant hurdles. Furthermore, concerns about food safety and the digital divide (access to technology and reliable internet connectivity) could hinder growth in certain regions. Despite these challenges, the long-term outlook for the e-grocery sector remains positive, with continued growth anticipated throughout the forecast period (2025-2033). Strategic partnerships between online retailers and traditional grocery chains are also emerging as a key trend, allowing for a seamless integration of online and offline shopping experiences. Segmentation within the market shows a strong preference for fresh produce and everyday essentials, driving innovation in packaging and delivery solutions to better accommodate these consumer needs. The expansion into new geographical regions, particularly in developing markets with growing internet penetration, promises further market 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