Dublin, August 27, 2024 (GLOBE NEWSWIRE) — The report “Online Grocery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2019-2029F” has been added to The Offer.
The global online grocery market was valued at USD 51.76 billion in 2023 and is expected to witness robust growth during the forecast period at a CAGR of 27.06% until 2029
The global online grocery market has witnessed significant growth and transformation in recent years, driven by the increasing adoption of e-commerce and changing consumer preferences. The convenience of ordering groceries online, coupled with the emergence of digital payment systems, has fueled the expansion of this market. The COVID-19 pandemic has accelerated the shift to online grocery shopping even further as consumers looked for safer and more convenient ways to procure essentials.
The major factors contributing to the growth of the market include the proliferation of smartphones and internet connectivity, which allows users to search for and order groceries from the comfort of their homes. E-commerce giants and traditional retailers have invested heavily in developing user-friendly platforms and efficient delivery systems to improve the overall online shopping experience. In addition, the availability of a wide range of products, competitive pricing and special offers have added to the appeal of online grocery shopping.
As the market evolves, players are exploring innovative technologies such as artificial intelligence and data analytics to personalize recommendations and optimize supply chain operations. Regional differences in consumer preferences and regulatory frameworks also influence the competitive landscape of the global online grocery market. Overall, the industry is poised for sustained growth driven by technological advancements, changing consumer behavior, and the progressive integration of online and offline retail channels.
Asia Pacific is the dominant region in the packaged food and beverage industry, driven by a combination of population growth, urbanization and changing consumer lifestyles. The region’s diverse and dynamic markets, including China, India and Southeast Asia, are characterized by a growing middle class with rising disposable income, leading to a rise in demand for convenient and packaged food. Rapid urbanization has led to a more hectic lifestyle, thereby increasing the preference for ready-to-eat and on-the-go packaged products.
Furthermore, the influence of Western eating habits, coupled with growing health and wellness awareness, is shaping consumer choices. Multinational and local companies are actively innovating to cater to the diverse tastes and preferences of this thriving market, making Asia Pacific a heavyweight in the global packaged food and beverage market.
Rapid implementation of omnichannel strategies
A prominent trend in the online grocery market is the rapid adoption of omnichannel strategies by retailers. Omnichannel refers to a seamless integration of different shopping channels, including online platforms, mobile apps, and physical stores, providing consumers with a unified shopping experience. This approach takes into account that consumers often use a combination of online and offline channels during their shopping experience.
Online grocers and traditional brick-and-mortar stores are increasingly using omnichannel strategies to provide flexibility and convenience to their customers. For example, retailers may offer the option to order online and pick up in-store, or allow customers to order through a mobile app while shopping in-store. This trend not only improves the overall customer experience, but also allows retailers to maximize their reach and reach a wider audience.
As part of their omnichannel strategies, some online grocery platforms are also exploring partnerships with third-party delivery services to expand their delivery reach and offer their customers faster and more flexible delivery options.
Focus on sustainable and ethical practices
Sustainability and ethical practices have become important considerations for modern consumers, and this trend is having a significant impact on the online grocery market. Consumers are increasingly looking for products that align with their values, including those related to environmental sustainability, ethical sourcing, and social responsibility. Online grocers are responding to this demand by emphasizing the transparency of their supply chains and offering environmentally friendly and responsibly sourced products.
Key initiatives include reducing packaging waste, promoting locally made products to reduce carbon footprints, and providing information about the ethical treatment of workers and animals in the production process. This trend not only reflects growing consumer awareness, but also positions online grocery platforms as responsible and socially conscious businesses in the eyes of their customers.
As sustainability plays an increasingly important role in purchasing decisions, online grocers are expected to continue to integrate environmentally friendly practices into their operations, from sourcing to packaging and delivery.
Integration of artificial intelligence and personalization
The integration of artificial intelligence (AI) and machine learning is a transformative trend in the online grocery market. AI is used to improve the overall customer experience by providing personalized recommendations, streamlining the shopping process, and optimizing supply chain operations. Machine learning algorithms analyze customer behavior, preferences, and purchase history to offer targeted product suggestions, promotions, and discounts.
Personalization not only improves customer satisfaction but also contributes to higher sales and increased customer loyalty. Online grocery platforms are investing in AI-driven technologies to create more intuitive and user-friendly interfaces and make the shopping experience more exciting and efficient. In addition, AI is being used to optimize inventory management, predict demand, and increase last-mile delivery efficiency, ultimately reducing operational costs and improving overall service quality.
The trend toward AI integration is expected to continue to evolve as online grocers explore new ways to leverage data analytics and machine learning for hyper-personalization and more sophisticated customer engagement.
Expansion of the online grocery market in emerging markets
While online grocery shopping has gained traction in developed countries, the trend is also rapidly spreading in emerging markets. Increasing internet penetration, rising smartphone usage and a growing middle class in many emerging markets are contributing to the growth of online grocery shopping. Online grocery platforms are capitalizing on these opportunities by expanding their services to new geographic regions.
Emerging markets face challenges such as different consumer preferences, logistical complexities and payment infrastructure issues. Online grocers are adapting their business models to meet local needs, partnering with local suppliers and investing in localized marketing strategies. This trend represents a significant growth opportunity for the global online grocery market as it leverages the increasing digitization of retail in emerging markets.
Main features:
| Report Attribute | Details |
| Number of pages | 185 |
| Forecast period | 2023 – 2029 |
| Estimated market value (USD) in 2023 | 51.76 billion US dollars |
| Projected market value (USD) until 2029 | 217.15 billion US dollars |
| Average annual growth rate | 27.0% |
| Regions covered | Generally |
Report scope:
Important market participants
- Aeon Co., Ltd.
- Alibaba Group Holding Limited
- Amazon.com, Inc.
- Blink Commerce Private Limited
- JD.com, Inc.
- Natural Basket Limited.
- Reliance Retail GmbH
- Target Brands, Inc.
- Tesco Co., Ltd.
- The Kroger Co.
Online grocery market, by type:
- Packaged food and beverages
- Body care
- Household products
- Fruit & Vegetables
- Miscellaneous
Online grocery market, by platform:
- Mobile application
- Desktop website
Online grocery market by region:
- North America
- United States
- Canada
- Mexico
- Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Indonesia
- Middle East and Africa
- South Africa
- Saudi Arabia
- United Arab Emirates
- turkey
- South America
- Argentina
- Colombia
- Brazil
For more information about this report visit https://www.researchandmarkets.com/r/two7si
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Global online grocery market
