Online Grocery Market to Hit USD 6,590.92 Billion by 2033, Powered by Urbanization and Eco-Friendly Supply Chain Shifts

Market Overview:

According to IMARC Group's latest research publication, "Online Grocery Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global online grocery market size reached USD 710.10 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6,590.92 Billion by 2033, exhibiting a growth rate (CAGR) of 28.09% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Online Grocery Market

• AI optimizes route planning for delivery vehicles, reducing delivery times by 15-20% and lowering operational costs through predictive analytics for demand forecasting.
• Government initiatives like India's ONDC (Open Network for Digital Commerce) support AI adoption in grocery platforms, with Ola managing over 30% of ONDC food orders in major cities.
• Companies like Amazon and Walmart use AI-powered recommendation engines to personalize shopping experiences, with 60% of consumers preferring customized product suggestions based on their purchase history.
• AI enhances inventory management with machine learning algorithms predicting stock requirements, reducing waste by 10-15% and ensuring product availability across 70% of online grocery platforms.
• Smart logistics powered by AI improve last-mile delivery efficiency, with autonomous vehicles and drones being tested, potentially saving the industry $940 billion annually in operational costs.

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Key Trends in the Online Grocery Market

• Surge in Mobile Shopping: Smartphone penetration has revolutionized grocery shopping, with mobile apps providing user-friendly platforms for browsing and purchasing. Over 78% of Asia-Pacific consumers prefer mobile shopping, and quick-commerce models offering 30-minute deliveries are gaining popularity in metro areas.
• Subscription Models Gaining Traction: Subscription-based purchases lead the market with 58.0% share in 2024. Services like Amazon Fresh and Walmart+ offer automated replenishment of essentials with benefits including discounted pricing, free delivery, and personalized experiences based on consumer preferences.
• Integration of Traditional and Digital Retail: Major grocery chains are adopting omnichannel strategies, allowing customers to shop online and choose between home delivery or in-store pickup. Click-and-collect techniques are widely used in France and other European nations, bridging physical and digital shopping experiences.
• Rapid Commerce Revolution: Same-day and instant delivery services are transforming the market, with quick-commerce comprising 45% of India's $11 billion online grocery business in 2024. Consumers increasingly prefer speed and convenience, willing to pay premium for 15-30 minute delivery windows.
• Focus on Fresh and Specialty Products: Online platforms are expanding their offerings to include fresh produce, organic items, and specialty foods. Partnerships with local farmers and vendors ensure product freshness, with staples and cooking essentials accounting for 28.9% market share in 2024.

Growth Factors in the Online Grocery Market

• Growing Smartphone Penetration: With over 90% of Americans owning smartphones and internet access, mobile devices are driving online grocery adoption. Asia-Pacific smartphone penetration reached 78% by 2023, enabling consumers to browse and shop conveniently from anywhere.
• Convenience-Driven Consumer Behavior: Busy lifestyles and time constraints push consumers toward online grocery shopping. Around 50% of Gen Z and millennials prefer convenience shopping, appreciating the ability to avoid traffic, long queues, and heavy lifting associated with traditional grocery shopping.
• Technological Advancements in Logistics: Advanced AI and machine learning integration for personalized recommendations, predictive analytics, and inventory management improves customer experience. Over 50% of eCommerce companies have integrated AI into operations, enhancing delivery efficiency and product availability.
• E-Commerce Infrastructure Expansion: Retail e-commerce sales worldwide are projected to exceed $4.1 trillion by 2024. Improved last-mile delivery solutions including dark stores, autonomous vehicles, and drone deliveries make online grocery shopping more accessible and efficient.
• Post-Pandemic Shopping Habits: COVID-19 accelerated digital adoption, with US households buying groceries online increasing by 116% since 2019. Health and safety concerns continue to encourage contactless shopping, with consumers maintaining their preference for online platforms even post-pandemic.

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Leading Companies Operating in the Global Online Grocery Industry:

• Amazon.com, Inc.
• Carrefour
• Costco Wholesale Corporation
• Edeka Group
• HappyFresh
• Koninklijke Ahold Delhaize N.V.
• Reliance Retail Limited (Reliance Industries Limited)
• Safeway Inc. (Albertsons Companies, Inc.)
• Schwan’s Home Delivery
• ShopFoodEx
• Tesco PLC
• The Kroger Co.
• Walmart Inc.
• Wm Morrison Supermarkets Limited

Online Grocery Market Report Segmentation:

By Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others

Staples and cooking essentials exhibit a clear dominance in the market due to their consistent demand and necessity in daily household consumption.

By Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others

Pure marketplace represents the largest segment, as it offers a wide variety of products from multiple sellers, providing buyers with more options and competitive pricing.

By Platform:

• Web-Based
• App-Based

Based on the platform, the market has been bifurcated into web-based and app-based.

By Purchase Type:

• One-Time
• Subscription

On the basis of the purchase type, the market has been classified into one-time and subscription.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America dominates the market owing to its high internet penetration, growing preference for online shopping, and well-established e-commerce infrastructure.

Recent News and Developments in Online Grocery Market

• January 2024: Instacart launched a novel SNAP eligibility screener on its platform, enabling people nationwide to check their eligibility for SNAP benefits in less than 60 seconds, improving accessibility to grocery delivery services.
• 2024: OLA announced plans to launch grocery delivery services via India's Open Network for Digital Commerce (ONDC), with the company managing over 30% of ONDC food orders in Bengaluru and Delhi-NCR.
• 2024: Goldman Sachs reported that quick delivery services comprised $5 billion or 45% of India's $11 billion online grocery business, with rapid commerce projected to reach 70% of the market by 2030 as it grows to $60 billion.

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