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TwitterThis 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.
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Online grocery companies sell grocery items through online channels, including those based online, as well as those with a physical presence and selling food products on the internet.
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The Online Grocery Market Report is Segmented by Product Category (Fresh and Perishable Goods, Pantry Staples and Cooking Essentials, and More), 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).
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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% |
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TwitterOnline 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.
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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. 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 .
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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.
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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.
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Online Grocery Market to grow from USD 709.13 billion in 2024 to USD 8,490.41 Billion by 2034 at 28.2% CAGR, driven by doorstep delivery, fresh food supply chains, and staples demand.
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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 |
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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.
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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:
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Discover the booming online grocery market! Explore key trends, drivers, and challenges shaping this rapidly expanding sector, featuring insights on major players like Amazon and Walmart. Learn about regional growth projections and future opportunities in this comprehensive market analysis (2019-2033).
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North America Online Grocery Delivery Market Segmented by Product Type (Retail Delivery, Quick Commerce and More), Delivery Speed (Standard, Same-Day and More), Platform Type (Mobile App, Web Portal and More), Customer Type (Household, Corporate), and Geography. The Market Forecasts are Provided in Terms of Value (USD).
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The Europe Online Grocery Delivery Market is segmented by product type ( Retail Delivery, Quick Commerce, Meal Kit Delivery) and by Country (United Kingdom, Germany, France, Spain, Rest of Europe). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
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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.
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The China online grocery market was valued at USD 184.45 Billion in 2024 and is expected to grow at a CAGR of 26.70% during the forecast period of 2025-2034. Surging demand from Tier III and IV cities, supported by government-backed rural digitisation programmes, is driving app-based grocery penetration and reshaping delivery economics for e-grocery firms beyond first-tier metro cities, aiding the market to attain a value of USD 1966.28 Billion by 2034.
Factors like digitised consumer habits and state-supported infrastructure along with the e-commerce and retail sector are also accelerating the market growth. As per the China online grocery market analysis, the country was the largest e-commerce market in 2021 with sales of over 1.5 trillion. The e-commerce industry is also being aided by the supportive policies of the Chinese government, which have been especially effective in the rural areas. Although the e-commerce industry is dominated by apparel and footwear, online grocery indicates fast-paced growth.
Platforms like Pinduoduo and JD.com are deepening their roots in Tier-2 and Tier-3 cities, capitalising on 80% smartphone penetration and improved cold chain logistics. According to the National Bureau of Statistics, the rural online retail sales of agricultural products alone surged by 20.1% YoY in 2023, which further indicates the China online grocery market growth.
In addition, green lanes for agri-delivery and government-funded smart warehousing have shortened lead times, allowing for faster, fresher groceries to reach doorsteps, boosting the demand in the market. Hence, the Chinese industry can be characterised by technology, policy, and user behaviour that favours B2B strategists who are looking to tap into scalable, digital-first supply chains.
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Online Grocery Market Size 2025-2029
The online grocery market size is valued to increase by USD 1535.6 billion, at a CAGR of 18.5% from 2024 to 2029. Increased popularity and adoption of e-commerce platform will drive the online grocery market.
Major Market Trends & Insights
APAC dominated the market and accounted for a 66% growth during the forecast period.
By Product - Food products segment was valued at USD 309.70 billion in 2023
By Type - One time customers segment accounted for the largest market revenue share in 2023
Market Size & Forecast
Market Opportunities: USD 503.29 billion
Market Future Opportunities: USD 1535.60 billion
CAGR from 2024 to 2029 : 18.5%
Market Summary
The market has witnessed significant expansion in recent years, fueled by the increasing convenience and accessibility it offers consumers. Global online grocery sales are projected to reach USD 250 billion by 2025, underscoring the market's immense potential. Functional food and beverages, a segment experiencing notable growth in the broader FMCG industry, have found a strong presence in the online grocery space. Consumers' evolving preferences and the convenience of having groceries delivered to their doorsteps have led to a shift in shopping behavior. End-users now demand seamless online experiences, with features such as personalized recommendations, real-time inventory tracking, and contactless delivery gaining popularity.
However, challenges persist, including ensuring product freshness and maintaining the cold chain during transportation. The market's future direction lies in continuous innovation and the integration of advanced technologies like AI, machine learning, and IoT. These technologies can enhance the shopping experience, improve supply chain efficiency, and address concerns around product quality and delivery. As the market matures, it will be essential for players to differentiate themselves through unique offerings and exceptional customer service.
What will be the Size of the Online Grocery Market during the forecast period?
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How is the Online Grocery Market 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.
Product
Food products
Non-food products
Type
One time customers
Subscribers
Delivery Mode
Home delivery
Click and collect
Product Type
Fresh produce
Breakfast and dairy
Snacks and beverages
Staples and cooking essentials
Others
Geography
North America
US
Canada
Europe
France
Russia
UK
APAC
China
India
Indonesia
Japan
South America
Brazil
Rest of World (ROW)
By Product Insights
The food products segment is estimated to witness significant growth during the forecast period.
In the ever-evolving retail landscape, the market continues to gain momentum, with food products accounting for a significant portion of revenue. Consumers increasingly prefer this channel for its convenience, ease of access, and personalized offerings. Key factors driving this trend include customizable options, swift delivery, integrated return policies, and a wide range of products and brands. Major players like Nestle, Danone, PepsiCo, Mars, Coca-Cola, Kraft-Heinz, Abbott, and Mondelez have capitalized on this trend, offering their products directly through their websites and third-party retailers. Advanced technologies such as pricing optimization algorithms, loyalty program integration, and user interface design enhance the shopping experience.
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The Food products segment was valued at USD 309.70 billion in 2019 and showed a gradual increase during the forecast period.
Cold chain logistics ensure the safe handling of perishable goods, while sales conversion optimization and product assortment planning cater to consumer behavior. Mobile app development, last-mile delivery, and customer relationship management tools further streamline the process. Data analytics dashboards, automated order fulfillment, and real-time tracking systems facilitate efficient operations, while fraud detection systems and inventory management software maintain security and accuracy. The market's continued growth is further evidenced by the increasing popularity of personalized recommendations, customer retention strategies, and e-commerce platforms. With the integration of marketing automation tools, customer service chatbots, and online payment gateways, the future of grocery shopping promises a seamless, convenient, and personalized experience.
Online grocery sales in the US are projected to reach USD 102.1 billion by 2025, under
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The India online grocery market attained a value of USD 12.00 Billion in 2024. The market is expected to grow at a CAGR of 24.36% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 106.17 Billion.
The rapid growth of quick commerce is significantly transforming the India online grocery market for meeting the increasing consumer demand for speed and convenience. Several platforms are delivering essentials within 10–30 minutes, especially in urban areas. In March 2025, Swiggy Instamart hit a milestone by launching quickcommerce services in 100 cities, including Raipur, Siliguri, and Jodhpur. This model caters to last-minute shopping needs, encouraging higher order frequency and impulse purchases.
With India's young and tech-savvy population and busy urban lifestyles, online grocery shopping fits seamlessly into daily routines. These consumers are highly comfortable with mobile apps, digital payments, and on-demand services. As per Home Credit India Study in 2025, 59% of millennials and 58% of Gen Z were online consumers in India. The speed and mobile-first experience align perfectly with this demographic’s habits, fuelling the ongoing market growth. The convenience of fast delivery, combined with app-exclusive deals, is driving the user retention and expanding the customer base.
The growing demand for organic, and functional foods is significantly driving the India online grocery market share, especially among health-conscious urban consumers. Rising awareness about nutrition and fitness has led to the surge in the consumption of organic fruits, gluten-free products, immunity boosters, and superfoods. Online grocery platforms have responded by expanding their wellness-focused product ranges and creating dedicated health food sections. In June 2025, Swiggy’s Instamart signed an MoU with Bharat Organics to introduce 21 certified organic staples, such as pulses, spices, cereals, oils, jaggery, and herbal teas on its quickcommerce platform in metros and Tier1 cities. This trend is particularly strong among millennials and upper-income households, fuelling premium segment growth.
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TwitterGrocery 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.
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The India online grocery market is estimated to be valued at USD 3.7 billion in 2025 and is projected to reach USD 7.8 billion by 2035, registering a CAGR of 7.8% over the forecast period. The market is projected to add an absolute dollar opportunity of USD 4.1 billion during 2025 to 2035.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 3.7 billion |
| Industry Value (2035F) | USD 7.8 billion |
| CAGR (2025 to 2035) | 7.8% |
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TwitterThe online food and grocery shopping market in the United Kingdom recorded an annual decrease of ** percent in 2022. That is well down on the previous year when e-shopping for food and groceries rose to popularity due to the COVID-19 pandemic. A slight increase in growth was forecast for 2023 as UK consumers become accustomed again to buying groceries online again.
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TwitterThis 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.