Supermarkets and grocery stores have significantly transformed in recent years, driven by technological advancements and shifting consumer preferences. E-commerce has become a cornerstone of the industry, with over 70.0% of grocery retailers integrating online ordering and fulfillment into their operations in 2025. This shift has been fueled by consumer demand for convenience and efficient shopping experiences, prompting retailers to invest heavily in curbside pickup and home delivery services. Major players like Kroger have leveraged these innovations to maintain a competitive edge, while third-party delivery platforms like Instacart have enabled smaller grocers to compete with larger chains. The adoption of "dark stores" and AI-driven technologies has further optimized operations but heightened competition has limited revenue expansion. Over the past five years, revenue has been slipping at a CAGR of 0.1%, reversing course in 2025 to climb 1.1%, reaching $883.1 million. Over the past five years, the industry has faced rising labor costs and competition from discount grocers and private-label products. Automation has played a crucial role in managing these pressures, with more than 50.0% of transactions in major chains processed through self-checkout systems in 2025. Despite these advancements, wages have continued to rise, accounting for an estimated 10.7% of revenue. This has led retailers to focus on strategic pricing and the promotion of high-margin private-label products to sustain profit. The proliferation of discount grocers like Aldi and Lidl has intensified competition, forcing traditional supermarkets to innovate and adapt to retain market share. Looking ahead, supermarkets and grocery stores are likely to endure steady but marginal revenue growth over the next five years, influenced by economic and demographic factors. Increases in per capita disposable income and consumer spending suggest a stable economic environment that could bolster sales of premium and specialty grocery items. However, declines in the agricultural price index may pressure revenue growth, as lower prices could reduce sales value. Urban population growth will continue to drive demand for grocery products, encouraging retailers to adopt urban-centric strategies. Upcoming FDA regulations on product labeling and ongoing geopolitical tensions will present challenges and opportunities for the industry. Retailers that can navigate these complexities and align with evolving consumer preferences, such as the rise of functional foods and the "quiet luxury" trend, will be well-positioned to thrive in a rapidly changing market landscape. Revenue is anticipated to expand marginally over the next five years at a CAGR of less than 0.1%, totaling $883.3 million in 2030.

Walmart was far and away the leader of the grocery industry in the United States in 2017, controlling over ********* of the market. Kroger, the next largest grocer, was a distant second with a ** percent market share. Over ** 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 *** 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 *** 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 ** percent.

The United States food and grocery retailing market was valued at USD 1.74 Billion in 2024. The industry is expected to grow at a CAGR of 3.30% during the forecast period of 2025-2034 to attain a valuation of USD 2.41 Billion by 2034.

Generating close to *** billion U.S. dollars’ worth of sales in 2023, Walmart was by far the leading food and grocery retailer in the United States. The retail giant made more than double the amounts generated by The Kroger Co., which ranked ****** that year. Food & grocery retailers While Walmart is a large and established food and grocery retailer, new companies are emerging on the market. Some of the fastest-growing retailers between 2014 and 2019 included Amazon.com, Dollar Tree, and Albertsons Cos. Amazon.com’s food and grocery sales grew by almost ** percent during that period and in 2020 totaled *** billion U.S. dollars. Walmart Walmart is an American retail corporation that was founded by Sam Walton in 1962. That year, the very first Walmart store opened in Rogers, Arkansas, and the number of locations has been growing ever since. By 2024, there were almost ****** stores across the globe, which were visited by customers an average of *** million times a week.

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.

Graph and download economic data for Producer Price Index by Industry: Supermarkets and Other Grocery Stores: Retailing of All Other Food and Beverage Products (PCU445110445110328) from Dec 1999 to Jun 2025 about groceries, beverages, food, production, retail, PPI, industry, price index, indexes, price, and USA.

Walmart captured a **** 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 *** 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 ***** 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 *** 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 *** percent. U.S. Supermarkets As of 2018, there were about ****** 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 ** percent of all U.S. supermarket sales are attributed to the perishables department. This department includes meat, fresh produce, and dairy, among other categories.

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. .

Grocery wholesalers act as a middleman between food producers and retailers. Improving per capita disposable income has allowed consumers to trade up to more expensive options at grocery stores or switch to dining out. Grocery wholesalers benefit either way as they distribute products to both markets. However, the growing trend of eliminating the middleman has pressured revenue expansion during the period. Still, grocery wholesalers' revenue shrunk at an estimated 1.7% CAGR to $298.2 billion over the past five years, including an anticipated 0.8% gain in 2025 alone. Although grocery wholesalers have a moderate market share concentration, businesses vary in size depending on their target market and geographical scope. The disproportionate size of grocery wholesalers has contributed to industry consolidation over the past decade as large wholesalers constantly seek new inorganic expansion opportunities. Grocery wholesalers' profit is also susceptible to change depending on the size of an organization and relevant industry prices such as produce and fuel. During the five years, significant disruptions in the supply chain and increases in the price of gas and energy pushed up transportation costs and contributed to decreasing profit. Over the next five years, grocery wholesalers' revenue expansion is anticipated to expand. The industry will be impacted by strengthened economic uncertainty and changes in downstream consumer preferences. Recent hikes in inflation will negatively impact grocery wholesalers' performance as consumers are forced to change their purchasing habits to manage expenses. However, growing per capita disposable income and a boost in the number of households will drive industry expansion. Moreover, agricultural product prices are expected to dwindle during the same period. Also, rising demand for specialized goods will lead smaller companies to carve out niche markets, supplying locally produced foods, ethnic foods and specialty imported foods. As a result, industry revenue will climb at an expected CAGR of 0.4% over the next five years to reach $303.6 billion in 2030.

Graph and download economic data for Producer Price Index by Industry: Supermarkets and Other Grocery Stores: Retailing of Frozen Food Products (PCU445110445110326) from Dec 1999 to Jun 2025 about groceries, food, production, retail, PPI, industry, price index, indexes, price, and USA.

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.

Key Trends for

Grocery Stores

Sustainability and Eco-Friendly Initiatives: Consumers are increasingly favoring retailers that are dedicated to minimizing plastic consumption, food waste, and carbon emissions. Grocery stores are embracing sustainable packaging, providing locally sourced produce, and establishing recycling initiatives to resonate with eco-conscious consumer values and ESG (Environmental, Social, Governance) criteria.

Personalization Through Data Analytics and Loyalty Programs: Retailers are utilizing purchase hist...

In 2024, total retail and food service sales reached **** trillion U.S. dollars for the first time in the United States. This is more than **** times the sales numbers that were generated in 1992, not adjusting for inflation. Leading retailers and store types In 2023, the leading food and grocery retailer in the United States was by far Walmart, which generated sales numbers of close to *** billion U.S. dollars that year. The Kroger Co., Costco Wholesale Club, and Ahold Delhaize were also among the top U.S. retailers. With a grocery market share of almost ** percent, the supermarket was the top store type in 2018. The warehouse clubs and superstores category stood in second place, accounting for almost a quarter of the U.S. market. Consumer habits The American consumer made an average of a little more than *** and a half trips to the grocery store per week in 2023. The average amount of trips has noticeably decreased, compared to a decade earlier. In recent times, online grocery shopping has also become an option for consumers. The concept is projected to grow considerably in the coming years, reaching roughly *** billion U.S. dollars’ worth of sales numbers in the United States by 2024.

The North American online grocery delivery market is experiencing robust growth, driven by increasing consumer preference for convenience, time-saving solutions, and the expanding reach of e-commerce. The market, segmented into retail delivery, quick commerce, and meal kit delivery, shows a Compound Annual Growth Rate (CAGR) of 10% between 2019 and 2033, indicating a significant expansion opportunity. Key players like Albertsons, Amazon Fresh, Walmart, and Instacart are intensely competing for market share, leading to innovation in delivery models, technological advancements (like improved apps and delivery optimization), and an expansion of product offerings beyond simple grocery staples. This competitive landscape benefits consumers through enhanced choices and competitive pricing. The market's growth is further fueled by the increasing adoption of smartphones and the penetration of high-speed internet access across the region, facilitating seamless online ordering and delivery experiences. While challenges such as high delivery costs and maintaining freshness remain, the overall market outlook remains exceptionally positive. The substantial growth in online grocery delivery is largely attributed to the changing lifestyles of North American consumers, who increasingly prioritize convenience and efficiency. The COVID-19 pandemic accelerated this trend, solidifying the habit of online grocery shopping for many. Looking ahead, the market is poised for further expansion with the continued development of advanced technologies such as automated warehouses and drone delivery, promising faster and more cost-effective solutions. Furthermore, the increasing integration of online and offline retail channels (omnichannel strategies) will be crucial for continued growth, enabling seamless shopping experiences and loyalty programs that bridge the gap between in-store and online purchases. This synergy will likely shape the competitive landscape and further enhance the overall consumer experience in the years to come. The North American market, encompassing the United States, Canada, and Mexico, is expected to remain a key driver of global online grocery delivery growth. Recent developments include: January 2023 - SPAR extended its operations in Latvia by launching a new store in Rzekne. The 265 sq. m neighborhood shop has everything required for everyday living, including a bakery and a fresh meat sales section., September 2022 - Instacart, a significant grocery technology business in North America, announced Connected Stores, a collection of six new Instacart Platform technologies that stack on top of current products, assisting grocers in combining the best of online ordering with in-store shopping for consumers., May 2022 - Instacart, a premier retail enablement business in North America, collaborated with over 10 additional retailers to expand same-day delivery across the country, including food and pharmacy major Metro Inc., discount retailer Giant Tiger, specialty grocer Galleria Supermarket, and others. Following its partnership with Metro, Instacart is working with Canada's top five groceries, including Costco, Loblaws, and Walmart. Instacart offers same-day delivery to over 90% of Canadian households across all ten provinces.. Key drivers for this market are: Subscription Services are Driving Market Growth, Home Delivery is Expected to Drive New Growth Opportunities for the Market. Potential restraints include: Subscription Services are Driving Market Growth, Home Delivery is Expected to Drive New Growth Opportunities for the Market. Notable trends are: Growing Demand for Super Fast Delivery.

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 India Solar Power Market is segmented by Platform (Offline, Online), product (Food Grains, Bread Bakery and Dairy Products, Fruits and Vegetables, Personal Care, Others), Method (Online Payments, Cash on Delivery), and Geography (APAC: India). This segmentation reflects the market's diversity, driven by increasing demand for food grains and fruits and vegetables in India, growing adoption of online platforms with online payments for convenience, and the continued reliance on Cash on Delivery for offline purchases to meet regional consumer preferences across the APAC region.
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

MealMe provides comprehensive grocery and retail SKU-level product data, including real-time pricing, from the top 100 retailers in the USA and Canada. Our proprietary technology ensures accurate and up-to-date insights, empowering businesses to excel in competitive intelligence, pricing strategies, and market analysis.

Retailers Covered: MealMe’s database includes detailed SKU-level data and pricing from leading grocery and retail chains such as Walmart, Target, Costco, Kroger, Safeway, Publix, Whole Foods, Aldi, ShopRite, BJ’s Wholesale Club, Sprouts Farmers Market, Albertsons, Ralphs, Pavilions, Gelson’s, Vons, Shaw’s, Metro, and many more. Our coverage spans the most influential retailers across North America, ensuring businesses have the insights needed to stay competitive in dynamic markets.

Key Features: SKU-Level Granularity: Access detailed product-level data, including product descriptions, categories, brands, and variations. Real-Time Pricing: Monitor current pricing trends across major retailers for comprehensive market comparisons. Regional Insights: Analyze geographic price variations and inventory availability to identify trends and opportunities. Customizable Solutions: Tailored data delivery options to meet the specific needs of your business or industry. Use Cases: Competitive Intelligence: Gain visibility into pricing, product availability, and assortment strategies of top retailers like Walmart, Costco, and Target. Pricing Optimization: Use real-time data to create dynamic pricing models that respond to market conditions. Market Research: Identify trends, gaps, and consumer preferences by analyzing SKU-level data across leading retailers. Inventory Management: Streamline operations with accurate, real-time inventory availability. Retail Execution: Ensure on-shelf product availability and compliance with merchandising strategies. Industries Benefiting from Our Data CPG (Consumer Packaged Goods): Optimize product positioning, pricing, and distribution strategies. E-commerce Platforms: Enhance online catalogs with precise pricing and inventory information. Market Research Firms: Conduct detailed analyses to uncover industry trends and opportunities. Retailers: Benchmark against competitors like Kroger and Aldi to refine assortments and pricing. AI & Analytics Companies: Fuel predictive models and business intelligence with reliable SKU-level data. Data Delivery and Integration MealMe offers flexible integration options, including APIs and custom data exports, for seamless access to real-time data. Whether you need large-scale analysis or continuous updates, our solutions scale with your business needs.

Why Choose MealMe? Comprehensive Coverage: Data from the top 100 grocery and retail chains in North America, including Walmart, Target, and Costco. Real-Time Accuracy: Up-to-date pricing and product information ensures competitive edge. Customizable Insights: Tailored datasets align with your specific business objectives. Proven Expertise: Trusted by diverse industries for delivering actionable insights. MealMe empowers businesses to unlock their full potential with real-time, high-quality grocery and retail data. For more information or to schedule a demo, contact us today!

In 2024, U.S. supermarket and other grocery store sales amounted to about ***** billion U.S. dollars. This is more than double the sales amounts that were generated back in 1992. Supermarkets and grocery stores in the U.S. WalMart stores dominated sales of the leading grocery retailers in 2023, generating close to *** billion U.S. dollars. Kroger and Ahold Delhaize each reached sales numbers of about *** and ** billion U.S. dollars, respectively, within the same period. In 2018, there were over 38,000 supermarket stores in the United States. Over ** percent of this total were supermarket chains. Supermarket formats In the United States, there are various types of supermarkets consumers can visit, such as natural/gourmet food supermarkets, warehouse grocery stores, and military commissaries. The most common type of supermarket in the country is one of the conventional kind. In 2018, there were just over ****** conventional supermarkets in the United States. The second most common type is the supercenter for groceries and mass merchandise, of which there were about ***** that year.

Snapshot img

Instant Grocery Market Size 2025-2029

The instant grocery market size is forecast to increase by USD 131 billion, at a CAGR of 16% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of technology and changing consumer preferences. With the rise of online grocery shopping, consumers now demand greater order transparency and convenience. This trend is pushing grocery retailers to invest in advanced technologies such as artificial intelligence, machine learning, and automation to streamline operations and enhance the customer experience. However, keeping pace with these technological advancements poses a challenge for many players in the market. As new technologies emerge, companies must continuously adapt and innovate to remain competitive.
Additionally, ensuring seamless integration of these technologies with existing systems and processes can be a complex undertaking. To succeed, grocery retailers must prioritize digital transformation initiatives and invest in the right technologies to meet evolving consumer demands and stay ahead of the competition.

What will be the Size of the Instant 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.
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The market continues to evolve, with dynamic market dynamics shaping its various sectors. Integral components, such as pick and pack, cold chain logistics, and dietary restrictions, are seamlessly integrated into the market's fabric. Organic produce, mobile ordering, and sustainable packaging are gaining traction, as consumers prioritize health and environmental concerns. Dairy products, pet food, personal care products, and household goods are among the numerous categories experiencing growth. Food waste reduction and subscription boxes are innovative solutions addressing sustainability and convenience. Last-mile delivery, seafood delivery, and meal kits cater to diverse consumer preferences. Warehouse automation, nutritional information, and meal kits are revolutionizing order fulfillment and inventory management.

Fresh produce delivery, frozen foods, and bakery goods are enhanced by advanced technologies, ensuring optimal quality and freshness. Customer service, pricing strategies, and targeted advertising are crucial elements in the market's competitive landscape. Data analytics, customer reviews, and promotional offers are essential tools for understanding consumer behavior and preferences. Baby products, e-commerce platforms, API integration, and food safety standards are additional facets of the market's intricate ecosystem. The ongoing unfolding of market activities underscores the need for continuous adaptation and innovation.

How is this Instant Grocery Industry segmented?

The instant 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

  Nonfood products
  Food products


Delivery

  Home delivery
  Click and collect


Type

  One-time purchasers
  Subscribers


Geography

  North America

    US


  Europe

    France
    Germany
    Italy
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

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

In the evolving grocery market, non-food products, including toiletries, bathroom cleaners, and kitchen supplies, hold a larger share than food items. With rising employment rates and income levels, consumers' lifestyles have changed, leading to an increased demand for convenience. This trend is driving the growth of instant grocery services, offering time-pressed individuals the ability to order non-food essentials online for delivery or pick-up. Cold chain logistics ensures the freshness and quality of these items, while mobile ordering and application development streamline the shopping experience. Dietary restrictions and preferences are catered to with organic produce and specialized offerings. Sustainable packaging and food waste reduction are also key considerations, appealing to eco-conscious consumers.

Pet food, personal care products, and household goods are essential categories within the non-food segment. Meal kits, frozen foods, and subscription boxes provide additional convenience for busy consumers. Payment gateways, inventory management, and customer service ensure a seamless shopping experience. Warehouse automation and last-mile delivery optimize operations, while food safety standards maintain product quality. Fresh produce delivery, dairy products, and meat and poultry are offered alongside canned go

Valuation of the global food retail market is estimated at US$ 12,588.8 billion in 2024 and has been evaluated to rise at a CAGR of 5.5% to reach US$ 21,503.5 billion by the end of 2034. The market is projected to expand at a steady rate over the coming years as food retail companies opt for innovative strategies to expand their customer base and increase their investment budgets.

Report Attribute	Detail
Food Retail Market Size (2024E)	US$ 12,588.8 Billion
Forecasted Market Value (2034F)	US$ 21,503.5 Billion
Global Market Growth Rate (2024 to 2034)	5.5% CAGR
Canada Market Growth Rate (2024 to 2034)	6% CAGR
China Market Value (2034F)	US$ 2,359.5 Billion
North America Market Share (2024E)	23.9%
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	The Kroger Company; Amazon.com Inc.; 7-Eleven; The Schwarz Group; Tesco Plc; Target Corporation; Costco Wholesale Corporation; Amartex Family Mart; Walmart Inc.; Anay Groceries.

Country-wise Evaluation

Attribute	United States
Market Value (2024E)	US$ 1,338.9 Billion
Growth Rate (2024 to 2034)	5.9% CAGR
Projected Value (2034F)	US$ 2,382.8 Billion

Attribute	South Korea
Market Value (2024E)	US$ 626 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 1,147.4 Billion

Category-wise Evaluation

Attribute	Convenience Stores
Segment Value (2024E)	US$ 2,882.8 Billion
Growth Rate (2024 to 2034)	6.4% CAGR
Projected Value (2034F)	US$ 5,354.4 Billion

Driven by the rising Hispanic and Asian populations in the US and an increase in at-home cooking during the pandemic, ethnic supermarkets have seen a significant surge in their consumer base. Besides, the sizeable spike in the immigrant population in the US also reinforces the growth of small ethnic grocers despite fierce competition from traditional supermarket chains. As a result, ethnic supermarkets are expected to continue their growth trajectory. The industry revenue has grown at a CAGR of 3.0% over the five years to 2024, amounting to $55.8 billion. This growth was also fueled in 2024 when ethnic supermarkets' sales grew by 1.0%. In the 1970s and '80s, a marked increase in Asian immigration to the United States gave rise to grocery stores such as H Mart, Patel Brothers, and 99 Ranch Market. Initiated in places like Chicago and the suburbs and outer boroughs of major cities, these stores were established to cater to immigrants' need for familiar tastes. Today, Asian flavors have swiftly captured the interest of Americans. Analysis by the data analytics firm Circana shows that US supermarkets saw almost a fourfold increase in sales from their "Asian/ethnic aisle" from April 2023 to April 2024, compared to overall sales growth. Asian grocery stores play a vital role in this change, more so than restaurants, cookbooks or online videos. Still, the threat to smaller ethnic grocers persists. Traditional grocery stores are stepping up, ready to cater to the growing ethnic communities. Such competition, along with price wars, may serve to decelerate supermarkets' revenue growth. With these factors in play, the road ahead for ethnic supermarkets may not be as smooth as expected. Overall, revenue for ethnic supermarkets is expected to increase annualized 2.3% to $64.4 billion over the five years to 2029.

Food Retail Market Outlook

The global food retail market size was valued at approximately $12.3 trillion in 2023 and is forecasted to reach around $17.9 trillion by 2032, registering a CAGR of 4.2% during the forecast period. The significant growth factor driving this market includes the increasing global population, urbanization, and the rising demand for convenient and healthy food options. The food retail market has been witnessing substantial transformation due to the integration of advanced technologies, such as artificial intelligence and machine learning, to enhance supply chain efficiency and customer experience.

One of the primary growth factors for the food retail market is the rising global population. The United Nations projects that the world population will reach approximately 9.7 billion by 2050, which translates to a higher demand for food products. Urbanization is another key driver, as more people move to urban areas, the need for accessible and diverse food retail options increases. Urban consumers typically favor quick and convenient shopping experiences, further propelling the growth of supermarkets, hypermarkets, and online retail channels.

Technological advancements play a pivotal role in the growth of the food retail market. The adoption of artificial intelligence (AI), machine learning, and big data analytics has revolutionized the way retailers manage inventory, forecast demand, and personalize customer experiences. AI-powered chatbots and virtual assistants enhance customer service, while data analytics provides insights into consumer behavior and preferences. These technologies contribute to improving operational efficiency and reducing costs, which in turn supports market growth.

Another significant growth factor is the increasing consumer preference for healthy and organic food products. Growing awareness about health and wellness, coupled with the rising incidence of lifestyle-related diseases, has led consumers to seek healthier food options. This shift in consumer behavior has created a surge in demand for fresh produce, organic food, and minimally processed products. Retailers are responding by expanding their product offerings and promoting health-focused brands, thereby driving market expansion.

Regionally, the food retail market is witnessing robust growth across various regions. North America and Europe have well-established food retail infrastructures, with a high penetration of supermarkets and hypermarkets. In contrast, the Asia Pacific region is experiencing rapid urbanization and economic growth, leading to a burgeoning middle class with increased purchasing power. This region is expected to witness the highest CAGR during the forecast period, driven by countries like China and India. Latin America and the Middle East & Africa are also emerging markets with significant potential for growth, supported by improving economic conditions and increasing consumer spending on food and beverages.

Product Type Analysis

The food retail market is segmented by product type, encompassing fresh produce, packaged food, beverages, dairy products, bakery and confectionery, meat and seafood, and others. Fresh produce remains a staple category in food retail, driven by the increasing consumer preference for healthy and organic foods. Retailers are investing in farm-to-table supply chains to ensure the availability of fresh fruits and vegetables. Additionally, the trend towards locally sourced produce is gaining traction, with consumers willing to pay a premium for high-quality, fresh, and organic products.

Packaged food is another significant segment within the food retail market. This segment includes a variety of processed and convenience foods that cater to the fast-paced lifestyle of modern consumers. The demand for packaged food is fueled by busy schedules, dual-income households, and the growing popularity of ready-to-eat meals. Innovations in packaging technology, such as resealable and microwaveable packaging, are enhancing the convenience factor, making packaged food an attractive choice for consumers.

The beverages segment encompasses a broad range of products, including soft drinks, juices, bottled water, tea, coffee, and alcoholic beverages. The rise in health consciousness among consumers has led to an increased demand for functional beverages, such as fortified drinks, energy drinks, and plant-based beverages. The growing trend of premiumization, where consumers are willing to spend more on high-quality and innovative beverage options, is also driving growth in this segment. Additio