The online grocery market is projected to be worth US$ 377.4 billion in 2023. The market is likely to reach US$ 3396.9 billion by 2033. The market is further expected to surge at a CAGR of 24.60% during the forecast period 2023 to 2033.

Attributes	Key Insights
Online Grocery Market Estimated Size in 2023	US$ 377.4 billion
Projected Market Value in 2033	US$ 3,396.9 billion
Value-based CAGR from 2023 to 2033	24.60%

2018 to 2022 Historical Analysis vs. 2023 to 2033 Market Forecast Projections

Historical Value in 2022	US$ 350.5 billion
Market Estimated Size in 2023	US$ 377.4 billion
Projected Market Value in 2033	US$ 3,396.9 billion

Country-wise Insights

China	32.50%
India	32.30%
France	22.90%
Canada	16.70%
The United States	14.20%

Category-wise Insights

Category	Market Shares
Packed foods	62.70%
Home Delivery	58.20%

Report Scope

Attribute	Details
Estimated Market Size in 2023	US$ 377.4 billion
Projected Market Valuation in 2033	US$ 3,396.9 billion
Value-based CAGR 2023 to 2033	24.60%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value in US$ billion
Key Regions Covered	North America Latin America Western Europe Eastern Europe South Asia and Pacific East Asia The Middle East & Africa
Key Market Segments Covered	Ingredient Type Form Function Application Product Type Region
Key Countries Profiled	The United States Canada Brazil Mexico Germany The United Kingdom France Spain Italy Russia Poland Czech Republic Romania India Bangladesh Australia New Zealand China Japan South Korea GCC countries South Africa Israel
Key Companies Profiled	Amazon.com Inc. Walmart Inc. The Kroger Co. Peapod LLC Fresh Direct LLC Publix Super Markets Inc. Target Corporation Best Buy Co. Inc. Instacart Costco Wholesale Corporation Safeway Inc. Carrefour S.A. Edeka Group Tesco PLC Aldi Alibaba Group JD.com Honestbee Grofers India Pvt. Ltd. Avenue Supermarts Ltd.

Food And Grocery Retail Market size was valued at USD 11,932.5 Billion in 2023 and is projected to reach USD 14,876.11 Billion by 2030, growing at a CAGR of 3.3% during the forecast period 2024-2030.

Global Food And Grocery Retail Market Drivers

The market drivers for the Food And Grocery Retail Market can be influenced by various factors. These may include:

Population Growth and Urbanization: Both the world population and urbanization are expanding. The demand for food and groceries rises as a result of these demographic developments, especially in metropolitan areas where accessibility and convenience are important considerations.
Changing Consumer lives: The demand for ready-to-eat and simple-to-prepare food products is driven by changes in consumer lives, such as busier schedules and a preference for convenience. Retailers are likely to succeed if they provide a wide variety of quick and easy solutions.
E-commerce and Online Grocery buying: These two methods of buying for groceries and food have become increasingly popular, completely changing the retail food and grocery industry. Online grocery ordering is convenient for customers, and businesses are responding to this demand by investing in digital platforms and logistics.
Emphasis on Health and Wellness: People are looking for healthier eating options as a result of growing awareness of health and wellness. Retailers who react to this trend by providing a range of wholesome, organic, and fresh items stand to gain market share.
Growth of Private Label Products: A lot of stores are increasing the range of products under their private labels, giving customers more reasonably priced options to name brands. Retailers can increase profit margins and set themselves apart with this tactic.
Technological Innovations in Retail: Retailers can improve supply chain management, optimize inventory levels, and customize the shopping experience for customers by utilizing technological advancements like data analytics, artificial intelligence, and RFID (Radio-Frequency Identification).
Sustainability and Ethical Consumerism: When making judgments about what to buy, consumers are becoming more aware of ethical and environmental issues. Customers that care about the environment can be drawn in by retailers who highlight ethical business methods, eco-friendly packaging, and sustainable sourcing.
Globalization and International Expansion: A large number of supermarket and food retailers are growing their businesses internationally. Retailers may enter new markets and satisfy a wide range of customer demands thanks to this trend toward globalization.
Loyalty programs rebates and competitive: pricing are important tools for drawing in new business and keeping existing clients. Retailers may sustain their competitive advantage and increase consumer loyalty by implementing efficient promotional techniques.
Government Regulations and Policies: The food and grocery retail industry may be impacted by government regulations and policies pertaining to food safety, labeling, and cost. Retailers need to adjust to policy changes while maintaining regulatory compliance.
Changes in Consumer Behavior Driven by the Pandemic: The COVID-19 pandemic has expedited some trends in consumer behavior, like the move to internet shopping, contactless payments, and increased emphasis on safety and sanitation in retail establishments. Retailers who adjust to these developments are probably going to be strong.

This demo map shows retail opportunity for grocery stores in the United States. Shades of red represent block groups with the most retail opportunity, where local demand is notably greater than local supply. Shades of grey represent block groups that are well supplied by local grocery stores. Opportunity still exists here but, it's more competitive in nature. This map is useful for looking around the United States to see where opportunity exists. The pop-up allows you to click on any block group and see the figures: Population, Retail Sales (supply) and Sales Potential (demand) within the block group, and Retail Sales (supply) and Sales Potential (demand) within a ten-minute drive.What is the Retail Opportunity Ratio? The ratio compares supply and demand for groceries for each block group. This was calculated for each block group by summarizing the supply (as measured by sales) and demand (as measured by market potential data) within a ten-minute drive time. The ratio is calculated by dividing retail sales by retail sales potential. This means that higher ratios in grey reflect areas that are saturated with sales, relative to nearby demand. Grey areas are drawing in more sales than the local demand supports. Red areas have more demand than local sales, meaning demand is forced to leave the local area.Areas in red (ratios lower than 1) have more sales potential than current sales.Areas in white have a close balance between current sales of an area and the potential for new sales.Areas in grey have higher sales than local demand alone would support.Data source: 2017 Retail MarketPlace data, within Esri Demographics.Methodology: U.S. Census Block Group centroids are used as framework for the analysis. The centroids are entered into an Origin-Destination Matrix in Network Analyst. The O-D Matrix evaluates which block group centroids fall within a ten-minute drive of one another. Once each block group centroid has its "network" of local block groups defined this way, the local supply and demand are summarized. The retail sales (supply), retail sales potential (demand), and number of businesses were summarized for each block group. The ratio comes from dividing summarized retail sales and retail sales potential, which gives an indicator towards saturation/opportunity for the block group.An additional layer shows the same information using block group centroids, sized by population. A third layer is available, showing the number of grocery stores within a ten-minute drive. This item is for demonstration use only.

In 2021, worldwide grocery sales of supermarkets and neighborhood stores amounted to 1,38 trillion U.S. dollars. Hyper-stores, on the other hand, were the second-largest channel with a total of 720 billion in sales. By 2026, all channels will have seen an increase in sales, with e-commerce featuring the highest growth.

This dataset contains sales data of an Italian grocery store at the SKU level. It consists of 118 daily time series representing the quantity of pasta sold from 01/01/2014 to 31/12/2018. Besides univariate time series data, the quantity is integrated by the information on the presence or the absence of a promotion.

Step into the progressive aisles of the food and grocery retail market, where every product tells a story of sustenance and satisfaction. Fresh off the press in FMI's new report, a culinary chronicle advancing the current valuation of US$ 12.4 trillion in 2024. By 2034, the market could reach a valuation of US$ 17.1 trillion, representing a sluggish CAGR of 3.3%.

Attributes	Details
Food and Grocery Retail Market Value for 2024	US$ 12.4 trillion
Food and Grocery Retail Market Value for 2034	US$ 17.1 trillion
Food and Grocery Retail Market Forecast CAGR for 2024 to 2034	3.3%

Analyzing the Historical Demand in the Food and Grocery Retail Market

Historical CAGR (2019 to 2023)	5.3%
Forecast CAGR (2024 to 2034)	3.3%

Category-wise Insights

Category	CAGR by 2034
Fresh Food	3.1%
Supermarkets and Hypermarkets	2.9%

Country-wise Insights

Countries	CAGR
The United States	3.5%
Canada	4.3%
China	3.9%
Japan	4.8%
South Korea	5.2%

Report Scope

Attributes	Details
Estimated Market Size in 2024	US$ 12.4 trillion
Projected Market Valuation in 2034	US$ 17.1 trillion
Value-based CAGR 2024 to 2034	3.30%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in US$ trillion
Key Regions Covered	North America Latin America Western Europe Eastern Europe South Asia and Pacific East Asia The Middle East and Africa
Key Market Segments Covered	Product Distribution Channel Region
Key Countries Profiled	The United States Canada Brazil Mexico Germany The United Kingdom France Spain Italy Russia Poland Czech Republic Romania India Bangladesh Australia New Zealand China Japan South Korea GCC countries South Africa Israel
Key Companies Profiled	Walmart Costco Wholesale Corp. 7-ELEVEN, Inc. Amazon.com Inc. The Kroger Co. Target Brands, Inc. ALDI AEON Co Ltd Carrefour CA Schwarz Gruppe

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

Report Metric	Details
Forecast Period	2023 to 2030
Base Year	2022
Historic Years	2021 (Customizable to 2015-2020)
Quantitative Units	Revenue in USD Million, Pricing in USD
Segments Covered	By Product Type (Packaged Food, Unpackaged Food, Drinks, Tobacco, Household Products, Others), Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Stores, Others)
Countries Covered	U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, and Rest of Middle East and Africa
Market Players Covered	Nestlé (Switzerland), Procter & Gamble (U.S.), Unilever (U.K.), The Coca-Cola Company (U.S.), PepsiCo (U.S.), Mondelez International (U.S.), Kellogg's (U.S.), General Mills (U.S.), Mars, Incorporated (U.S.), The Kraft Heinz Company (U.S.), and Danone (France)
Market Opportunities	New Technological Advancements Global Expansion of Grocery Retail

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Online Grocery Market Forecast 2023- 2027

The online grocery market size is projected to reach a value of USD 740.88 billion with a CAGR of 13.14% between 2022 and 2027. The market growth and trends depend on several factors, including the increased grocery purchases popularity and adoption of e-commerce platforms, the rapid growth in e-commerce, and the growing popularity of fast grocery delivery services. It offers the convenience of shopping from home and having the groceries delivered to the customer's doorstep. Online platforms often provide a wide selection of products and convenience in shopping including fresh produce, pantry staples, and even prepared meals, stored at warehouses with safety.

Market Overview and Growth

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Market Driver

The rapid growth in e-commerce is the key factor driving the growth of the global market. Apart from the growth in online web-based retail services, the global market has also witnessed an increase in the adoption of mobile-based (or app-based) services or m-commerce. This growth in m-commerce is mostly due to the increased penetration of smartphones globally.

The intensifying competition within the global online grocery market has spurred innovative approaches to offer expedited delivery services, particularly for fresh produce, pantry staples, breakfast choices, and shopping cart essentials. From bustling cities to suburban neighborhoods, deliveries of various brands and product types, including breakfast essentials, redefine accessibility. Online platforms offer a wider selection of products, including specialty items, fresh fruits, organic produce, and international brands, catering to a diverse number of consumers variety. Additionally, deals prompt increased purchases, driving higher sales volumes as customers explore additional items or categories due to the attractive incentives. These are fresh and direct add-to-the-shopping cart and checkout features that drive the growth of the market.

Although the penetration of e-commerce is high in developed regions, such as North American and European countries, due to the high adoption and use of laptops and desktops, developing regions such as Asia also offer a high growth opportunity to online retailers due to increasing demand for and use of m-commerce. In developing regions, people solely rely on their smartphones for Internet access due to increased mobile subscriptions, especially in developing countries such as the BRICS nations.

Market Trends

The demand for functional food and beverages is growing rapidly number among consumers worldwide due to health benefits such as enhanced immunity, improved mental strength, improved heart rate, improved digestive health, hydration and electrolyte-replenishing benefits, and better intestinal flora and gut function. Further, a number of consumers are spending more on non-traditional fitness activities, such as yoga and aerobics, and thus, prefer to consume functional food and beverages as a healthy source of nutrition.

This growing need and aspiration of customers regarding functional food are further propelling its demand across the globe. As all these functional food and beverage products are not readily available at brick-and-mortar retail stores, supermarket and hypermarket consumers must buy them online. Vendors of functional food and beverages are also marketing their products with the help of effective labeling and product formulation. The stores and grocery delivery service providers are showcasing and offering these products to widen their product portfolios to capture more share in of the market.

Market Challenge

The huge competition from offline retail stores is a major challenge to the growth of the global market. Offline grocers and brick-and-mortar stores, especially unorganized nearby grocery retailers, are major competitors of online grocery delivery service providers. In developing countries, such as India, unorganized nearby grocery retailers offer various offers, services, and discounts to their customers. The services include the exchange of products that do not meet customer expectations and free delivery at doorsteps. The online delivery service players find it difficult to compete with brick-and-mortar grocery sellers as, in developing countries, a number of consumers are price-sensitive and are very concerned about the way goods are delivered to them.

Another major reason is ensuring the freshness and quality of perishable items like fruits, vegetables, and meats throughout the supply chain. Managing the short shelf life of fresh products demands meticulous pantry control while meeting the demand and order of several consumers.

Market Segmentation

The market share growth by the food products segment will be significant during the forecast period. The grocery food product segment contributes substantially to the revenue gen

Due to the coronavirus pandemic, online delivery orders surged in the United States. Up to 70 percent of grocery shoppers purchased non perishable packaged foods like cereals or sneaks on the internet in 2021, while they were only 58 percent in 2017. More than half of respondents also adopted online shopping for fresh and frozen foods, as well as drinks.

The online grocery craze One of the most visible shifts in U.S. consumer demand and behavior after the COVID-19 pandemic can be seen in regard to grocery shopping. Since April 2020, grocery delivery and pick up sales remained well above five billion dollars per month. Particularly among older generations, consumers seemed keen on buying groceries online in the future, as they did during the pandemic.

Food delivery: a tale of two sides Not only the amount and type of food that U.S. customers buy and sometimes stockpile has shifted, but also the preferred avenues. Around one-third of surveyed shoppers indicate a willingness to keep using Amazon Fresh or DoorDash to have food home delivered. Other widely chosen options include local grocery stores, chain restaurants, and online grocery sites. In return, app downloads of online grocery delivery platforms like Uber Eats and Instacart are surging.

But while these services offer customers a safe and flexible alternative to jammed grocery stores or restaurants, companies like Instacart also face criticism for their treatment of delivery workers. As couriers are hired as gig workers instead of employees, they do not receive sick pay or other health benefits. Seeing that these contractors have worked on the frontlines of the pandemic, their lack of financial and physical protection remains an ongoing point of contention.

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 25 billion British pounds. That figure was forecast to increase to nearly 30 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 42 percent of shoppers bought their groceries primarily in-stores, and only partially online.

According to Cognitive Market Research, the global E grocery market size is USD 51254.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 27.00% from 2024 to 2031.

North America holds the major market of more than 40% of the global revenue with a market size of USD 20501.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.2% from 2024 to 2031.
Europe accounts for a share of over 30% of the global market size of USD 15376.26 million.
Asia Pacific holds the market of around 23% of the global revenue with a market size of USD 11788.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 29.0% from 2024 to 2031.
Latin America's market has more than 5% of the global revenue, with a market size of USD 2562.71 million in 2024. It will grow at a compound annual growth rate (CAGR) of 26.4% from 2024 to 2031.
Middle East and Africa holds the major market of around 2% of the global revenue with a market size of USD 1025.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 26.7% from 2024 to 2031.
The staple and cooking essentials holds the highest E grocery market revenue share in 2024.

Market Dynamics of E grocery Market

Key Drivers for E grocery Market

Convenience and Timesaving Benefits to Increase the Demand Globally

The convenience and timesaving benefits of ordering groceries online are key factors driving increased demand globally. E-grocery platforms allow consumers to browse and purchase items from the comfort of their homes or on the go, eliminating the need for physical store visits and long checkout lines. This streamlined shopping experience saves valuable time and effort, catering to the busy lifestyles of modern consumers. Moreover, the availability of flexible delivery options, including same-day or scheduled deliveries, further enhances convenience. As consumers increasingly prioritize convenience and efficiency in their shopping habits, the demand for online grocery services continues to rise worldwide, shaping the future of retail and driving the expansion of the e-grocery market.

Changing Consumer Behavior to Propel Market Growth

Another key driver in the E grocery market is the Changing Consumer Behavior. With increasingly hectic lifestyles, consumers prioritize convenience and timesaving solutions in their shopping habits. Online grocery shopping provides a convenient alternative to traditional brick-and-mortar stores, allowing customers to browse and purchase items from the comfort of their homes or on-the-go. The convenience, variety, and accessibility offered by e-grocery platforms align with evolving consumer preferences, driving increased adoption globally. This changing behavior underscores a growing demand for digital solutions that cater to modern lifestyles and preferences. As a result, e-grocery market players are expanding their offerings and enhancing their services to meet the evolving needs of consumers, leading to substantial market growth and reshaping the future of grocery retailing on a global scale.

Restraint Factor for the E grocery Market

Quality Concerns to Impede the Growth

One key restraint in the E grocery market is quality concerns. Unlike traditional brick-and-mortar stores where shoppers can inspect products firsthand, e-grocery shoppers rely on descriptions and images provided by the platform, which may not always accurately reflect the item's condition upon delivery. Issues such as mishandling during transit or improper storage can further compromise product quality. To address these concerns and foster consumer trust, e-grocers must prioritize quality control measures, including stringent sourcing standards, proper handling procedures, and transparent communication with customers regarding product freshness and quality assurance processes. By instilling confidence in the quality of their offerings, e-grocers can mitigate this restraint and drive sustained growth in the market.

Impact of COVID-19 on the E grocery Market

The COVID-19 pandemic has had a profound impact on the e-grocery market, accelerating its growth and reshaping consumer behaviors. With lockdowns and social distancing measures in place, consumers increasingly turned to online shopping for groceries as a safer alternative to traditional brick-and-mortar stores. This surge in demand led to unprecedented levels of traffic on e-grocery pla...

Snapshot img

UK Grocery Retail Market Forecast 2023-2027

The UK Grocery Retail Market size is projected to increase by USD 52.54 billion and the market size is estimated to grow at a CAGR of 3.83% between 2022 and 2027. In 2017 the size of the market was valued at USD 217 billion.

The market is primarily driven by the diverse needs of consumers. With a significant portion of retail sales attributed to grocery shopping, there's a consistent demand for groceries among British consumers. This demand fuels the growth of grocery retailers and supermarket chains, which play a vital role in the UK's retail sector. London, as a major economic hub, influences trends and sales patterns in the grocery market nationwide. Moreover, the presence of established British grocery retailers and supermarket giants further solidifies the market's stability and growth potential. These factors collectively contribute to the robustness of the UK's grocery retailing industry.

Overview of the UK Grocery Retail Market

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Market Overview

Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic market analysis and report of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Consumer Trends and Preferences

Innovative store layouts and offerings to amplify customer experience is an ongoing trend driving the market. The use of both traditional and online channels for shopping is increasing in the country, putting pressure on distribution channels like department stores, specialty stores, hypermarkets, and supermarkets to adopt innovative strategies. The prevalence of smartphones has led to the development of IoT devices like Beacons, which enable location-based services and precise targeting for department stores. Additionally, retailers and supermarkets in the UK are introducing technologies like 3D sensors to enhance safety and curb the spread of COVID-19. The adoption of beacon technologies is expected to increase customer interaction and have a positive impact on the market and trends during the forecast period.

Future Outlook and Predictions

The future projection for the market is one of intense competition and dynamic changes. With the rise of e-commerce and delivery services, traditional grocery stores face challenges to retain their market share. British retailers are adapting, focusing on building customer loyalty through personalized content and streamlined delivery services. The UK's grocery sector is also witnessing increased competition from international players like Canada and France, further spurring innovation. Local shops are leveraging their proximity and community ties to compete with larger supermarket chains. Economic shifts and evolving consumer preferences will continue shaping the landscape of the UK grocery market.

Major Challenges and Opportunities

The threat of counterfeit grocery products is a major challenge hindering market. The market is facing a significant threat from counterfeits, which are widely available in various product categories, including FMCGs and electronics. Customers are finding it challenging to differentiate between counterfeit and genuine products, and the counterfeit market is flourishing through online platforms. This is negatively impacting the sales of major retailers and tarnishing the reputation of genuine manufacturers. Duplicate brands price their products lower than genuine ones, but they lack quality and durability due to low production costs. Counterfeit products often mislead consumers with fake packaging and similar product names, particularly in rural areas. The prevalence of counterfeit products is likely to impede the growth of the market during the forecast period.

Customer Landscape

The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the Market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market in UK Customer Landscape

Key Players in the Grocery Retail Market

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

Key Offering- EG Group is a world-leading independent convenience retailer that deals with food service, grocery, merchandise, and fuel stations across Europe, the United States, and Australia. The key offerings of the company include a premier 30-gram protein plus energy and immune support shake. 
Key Offering- Amazon offers 400-gram Eng

The India online grocery market size is predicted to reach a valuation of US$ 6.8 billion by 2033. Our food and beverage industry analysts opine that India online grocery providers can expect a CAGR of 7.8% through 2033, with a current valuation of US$ 3.2 billion in 2023.

Attribute	Details
India Online Grocery Market Size, 2022	US$ 2.0 billion
India Online Grocery Market Size, 2023	US$ 3.2 billion
India Online Grocery Market Size, 2033	US$ 6.8 billion
Value CAGR (2023 to 2033)	7.8%

Historical Performance of India Online Grocery Market (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

Attributes	Details
Halal Food Market Size (2018)	US$ 1.48 billion
Halal Food Market Size (2022)	US$ 2.0 billion

Category-wise Insights

Segment	Snacks & Beverages
Market Share (2022)	28.90%

Segment	Online
Market Share (2022)	67.9%

The global food & grocery retail market size was valued at USD 11,932.5 billion in 2023 and is expected to grow at a CAGR of 3.2% from 2024 to 2030.

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India Grocery Market Forecast 2023-2027

The India grocery market size is estimated to increase by USD 289.29 billion and grow at a CAGR of 8.06% between 2022 and 2027. The rise in disposable income among consumers in India is the key factor driving the market growth. The online grocery market in India is expected to grow due to factors such as the rising Internet penetration, the increasing number of mobile phone users, the rising preference for convenience and value-added services, and the growing awareness of the benefits of online shopping among Indian consumers. In addition, consumers in tier II and III cities such as Vadodara and Kanpur are shifting their preference from neighborhood convenience stores to supermarkets and hypermarkets with cheap prices because of increasing disposable income and rapid urbanization. Thus, these factors are expected to drive the growth of the market during the forecast period.

India Grocery Market: Overview

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Market Segmentation

This market report extensively covers market segmentation by platform (offline and online), product (food grains, bread bakery, and dairy products, fruits and vegetables, personal care, dry and baking products, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.

By Product

The food grains segment is expected to dominate the market. According to the fourth preliminary production estimate released by the Ministry of Agriculture and Farmers' Welfare on August 12, 2021, India's total food grain production reached a record high of 315.7 million tonnes for the period 2021-2022, with rabi cereal production exceeding that of rabi. target. Various suppliers, such as Amazon Inc., Reliance Industries Limited, and Grofers India Pvt. Ltd., offer a wide range of food products and offer various discounts and offers. This factor is helping to maintain the dominance of the food grains segment thereby driving the growth of the market during the forecast period.

Bread, bakery products, and dairy products account for the second-largest share of the market in 2022. Bakery products such as bread have become a popular choice among consumers due to their high nutritional value and affordable price. The growing population and rising health awareness of consumers in the region are driving demand for dairy products such as milk, ice cream, cheese, and butter. Hence, the bakery, bread, and dairy products segment is expected to grow significantly, which in turn will drive the growth of the market during the forecast period.

By Platform

The market share growth by the offline segment will be significant during the forecast period. The offline segment includes supermarkets, hypermarkets, convenience stores, discount stores, and retail stores. Supermarkets and hypermarkets are popular distribution channels for the market. The widespread popularity of organized retailing increases food sales. The large shelf space and storage areas of these stores hold a wide variety of products and allow consumers to choose based on their favorite brands.

The offline segment was the largest segment and was valued at USD 499.24 billion in 2017.

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Convenience stores and discount stores are other forms of organized retail. These stores are smaller than hypermarkets and supermarkets in terms of capacity but offer a wide variety of groceries from different market players under one roof. Furthermore, new product launches as well as increased market players' promotional and marketing spending have resulted in creative and engaging displays at offline stores. Thus, such factors will boost the growth of the offline segment during the forecast period.

The convenience offered by online channels is projected to lead to substantial growth in this segment. Further momentum on the market will be provided by government support to digital literacy, and initiatives relating to the digital economy framework. People are increasingly looking for convenient and personalized online platforms as their disposable income and expenses increase and their lifestyles become busier. Indian customers are increasingly starting to explore international cuisines and brands, which is driving the growth of the online market during the forecast period.

Market Dynamics and Customer Landscape

The Market is undergoing a transformation driven by various factors including busy lifestyles, digital payment methods, and the rise of AI-driven recommendation systems. With consumers seeking convenience, grocery shopping is increasingly shifting towards digital platforms, aided by automation and delivery systems. The Digital India effort has further accelerated this transition, with a sur

Expert industry market research on the Supermarkets and Grocery Stores in Australia (2024-2029). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

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Online Grocery Market in India Forecast 2023-2027

The online grocery market in India is poised to grow by USD 4.74 billion accelerating at a CAGR of 20.52% between 2023 and 2027. Additionally, the market is fragmented in nature and shows a YOY growth of 19.20%. The report covers diverse dimensions such as the market size of forecast and historic data, influential drivers, analysis of prominent companies, and evolving market growth and trends, presenting a comprehensive outlook on the global market scenario.

The growth of the market depends on several factors, including increased popularity and rise in e-commerce platforms, rise in disposable income among consumers in India, and rapid growth in m-commerce. The comprehensive report offers crucial insights into the industry's changing dynamics, helping businesses to identify growth opportunities in the constantly evolving digital retail landscape.

What will be the Size of the Online Grocery Market In India During the Forecast Period?

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Key Driver

The rapid growth in m-commerce is notably driving market growth.

Apart from the growth in online web-based retail services, the market has also witnessed an increase in the adoption of mobile-based (or app-based) services or m-commerce. The growth in m-commerce is mostly attributed to the increased penetration of smartphones in India. Using mobile apps, consumers can shop from anywhere and in any situation, even when traveling.

The penetration of e-commerce is high in Indian metropolitan cities, including Mumbai, Delhi, Hyderabad, Bangalore, and other places owing to the high adoption and use of laptops and desktops, which offers a high growth opportunity to these retailers due to the increasing demand for and use of m-commerce. Moreover, the popularity of m-commerce has motivated offline stores and e-commerce players to switch to these platforms. These factors are expected to drive the growth of the market in India during the forecast period.

Major Trends

The growth in demand for functional foods and beverages is an emerging trend in the market.

The growing prevalence of obesity and other health conditions is encouraging health-conscious consumers to opt for food and beverage products that have various functional benefits. Consumers are ready to pay a premium price for products offering various functional and several other health-promoting benefits, such as reduced fat.

However, these products are not available in local grocery stores and even in large-scale supermarkets and hypermarkets. companies in the market are offering new products on their e-commerce platforms that are rich in nutrients and antioxidants and cater to the changing demands of consumers. A large number of functional foods and beverages are available in the market, owing to the increasing product launches by prominent brands and increasing consumer demand for these products. E-commerce platforms collaborate with local and international brands and make these products available to consumers through their online platforms. Hence, such factors will drive the growth of the market in India during the forecast period.

Market Report Coverage

Market Segmentation
Marekt Regional Analysis
Market Companies Contribution

Market Segmentation

The market share growth by the food products segment will be significant during the forecast period. The grocery food products segment contributes substantially to the revenue generated from the retail sales of groceries through online channels. The products included in the food products segment are consumed on a regular basis, and they have shorter shelf lives than those in the non-food products segment.

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The food products segment was valued at USD 734.55 million in 2017 and continued to grow until 2021. Consumers prefer these retail channels over brick-and-mortar stores for shopping for food products due to factors like options for customization and personalization, availability of high-quality food products, swift delivery processes and integrated return policies, and a wide range of products and brands to select from. In addition, the presence of various leading global packaged food and beverage producers, such as Nestle S.A (Nestle), PepsiCo Inc (PepsiCo), Mars Inc. (Mars), Coca-Cola Co (Coca-Cola), and several others on these retail channels, both through their own websites as well as through third-party retailers, encourage consumers in India to shop for food products online. Moreover, omnichannel marketing of products also enables packaged food and beverage players to attract consumers and increase the sales of food products. Hence, such factors are expected to boost the growth of the segment during the forecast period.

Online Grocery Market in India Companies Contribution

Avenue Ecommerce Ltd. - The company offers grocery, cookware and serve ware, fruit

Scraped grocery data from Costco's online marketplace.

Features:

• Sub Category: This column categorizes the grocery items into subcategories, providing a detailed classification for easier analysis and organization.
• Price: Represents the monetary value of the grocery item, indicating its cost or retail price in the specified currency.
• Discount: Reflects any discounts or promotional offers applicable to the respective grocery item, providing insights into pricing strategies.
• Rating: Indicates customer satisfaction or product quality based on user ratings, offering a measure of the overall perceived value of the grocery item.
• Title: Describes the name or title of the grocery item, providing a concise identifier for easy reference and understanding.
• Currency: Specifies the currency in which the prices are denominated, facilitating proper interpretation and comparison of monetary values.
• Feature: Includes features or characteristics of the grocery item, offering additional information about its unique attributes or selling points.
• Product Description: Provides a detailed textual description of the grocery item, offering comprehensive information about its specifications, uses, and other relevant details. This column is handy for understanding product details beyond what is captured in other columns.