Online Grocery Market Size to Hit USD 6,590.92 Billion in 2033 | Grow CAGR by 28.09%

Market Overview:

The online grocery market is experiencing rapid growth, driven by digital penetration and urban lifestyle changes, expansion of delivery and fulfillment models, and technological advancements in personalization and efficiency. According to IMARC Group's latest research publication, "Online Grocery Market Size, Share, Trends and Forecast by Product Type, Business Model, Platform, Purchase Type, and Region, 2025-2033", The global online grocery market size was valued at USD 710.10 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 6,590.92 Billion by 2033, exhibiting a CAGR of 28.09% from 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.

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Our report includes:

• Market Dynamics
• Market Trends and Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Online Grocery Market

• Digital Penetration and Urban Lifestyle Changes

The increasing widespread adoption of smartphones and high-speed internet is fundamentally reshaping consumer access to online grocery platforms. In 2024, the Asia-Pacific region, for example, accounted for the largest market share globally—a dominance largely attributed to a tech-savvy population and high mobile accessibility. Furthermore, the rising global urban working population and increasingly passive lifestyles drive demand for convenient, time-saving solutions. US data indicates that approximately 61% of households were buying groceries online as of mid-2025, with 77% of shoppers citing time savings as the primary reason. This demographic shift, coupled with an available digital infrastructure, makes online grocery shopping a preferred necessity over the traditional store visit.

• Expansion of Delivery and Fulfillment Models

Intense competition among major retailers and agile startups is driving significant investment in logistics and delivery innovation, thereby expanding the market's reach and speed. Large companies like Walmart and Kroger are aggressively pursuing omnichannel retail strategies, leveraging their physical store networks for "Click & Collect" services. This model is highly attractive, with surveys showing a significant percentage of consumers prefer it for the speed and cost-effectiveness of avoiding delivery fees. Concurrently, the rise of "Quick Commerce" (Q-commerce), offering ultra-fast delivery, caters to immediate consumer needs. For instance, in March 2025, Uber Eats partnered with FreshDirect to expand same-day and on-demand grocery delivery across New York City, demonstrating how strategic alliances and optimized urban logistics networks are essential for market expansion.

• Technological Advancements in Personalization and Efficiency

The integration of advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) is continuously improving the customer experience and operational efficiency of online grocery platforms. AI analyzes consumer purchase histories and dietary preferences to provide highly personalized product recommendations, a feature that can significantly boost retailer revenue. On the back-end, predictive analytics in inventory management helps grocers minimize food waste and ensure product availability, especially for perishable goods. Many online platforms now offer features like dietary filters for health-conscious consumers and simple reordering tools for staples. This focus on a seamless, data-driven shopping journey attracts and retains customers by saving time and aligning product offerings precisely with individual needs.

Key Trends in the Online Grocery Market

• The Rise of Quick Commerce and Instant Delivery

The emerging Quick Commerce (Q-commerce) trend focuses on delivering groceries within minutes, rather than hours or the next day, fundamentally changing consumer expectations for speed. This model is rapidly expanding, particularly in densely populated urban centers where the demand for instant gratification is high. For example, numerous startups have entered the market offering delivery times often under one hour for a curated selection of essentials. This hyper-local strategy, relying on small, strategically placed fulfillment centers or dark stores, has led to a significant shift, with the instant delivery segment expected to hold a leading share of the total delivery market. This trend appeals strongly to busy consumers and those needing last-minute items, establishing a new benchmark for convenience.

• Focus on Health, Wellness, and Sustainable Sourcing

Consumers are increasingly prioritizing health and environmental impact, pushing online grocers to expand their assortments of organic, sustainable, and ethically sourced products. A significant percentage of consumers are actively seeking products that align with their personal values, such as eco-friendly packaging or specific dietary restrictions. This demand is quantified by the fact that nearly 80% of consumers worldwide are open to paying extra for eco-friendly products. Consequently, online platforms are not just stocking, but actively highlighting, specialized categories like plant-based alternatives and local produce. This trend fosters customer loyalty by reflecting shoppers' commitment to healthier lifestyles and supporting businesses with transparent, responsible supply chains.

• Subscription-Based Models for Recurring Needs

The adoption of subscription services is becoming a crucial strategy for online grocers to secure recurring revenue and enhance customer retention. These models simplify the consumer's experience by automating the regular purchase of staple items like milk, eggs, or pantry goods, removing the need for manual reordering. Companies like Amazon and various regional players offer subscription options for their popular products, often providing a discount or free delivery to incentivize the commitment. For the retailer, this predictability in demand allows for more efficient inventory and logistics planning. The segment covering recurring purchases is poised to demonstrate substantial expansion, indicating a strong preference among busy households for a predictable, hands-off approach to stocking essential groceries.

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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.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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