Online Grocery Market Size, Share, Growth, and Industry Analysis, By Types (Packaged Foods, Fresh Foods) , Applications (Personal Shoppers, Business Customers) and Regional Insights and Forecast to 2033

Online Grocery Market Size

The global Online Grocery Market was valued at USD 103.89 billion in 2024 and is expected to reach USD 129.66 billion in 2025, growing to USD 763.02 billion by 2033 at a CAGR of 24.8% from 2025–2033, driven by digitalization, convenience shopping, and increased consumer reliance on e-commerce.

The US Online Grocery Market is experiencing strong growth due to rising demand for contactless delivery, expansion of major retailers' online platforms, and advancements in supply chain logistics. Subscription-based grocery models and AI-driven inventory management further boost market expansion across the US and globally.

The online grocery market has experienced substantial growth due to rising internet penetration, with over 60% of global consumers opting for online grocery shopping. Urbanization plays a critical role, with cities showing an increase of over 50% in online grocery adoption in the past few years.

Additionally, mobile apps have seen usage spikes of more than 40%, and consumer demand for contactless deliveries surged by over 35%. This trend is particularly noticeable in the 25-44 age demographic, which represents approximately 45% of online grocery shoppers globally. These patterns indicate a rapid shift toward digitalization in everyday shopping behaviors.

Online Grocery Market Trends

Online grocery shopping is growing rapidly, with over 60% of urban consumers turning to e-commerce platforms for groceries. The frequency of online grocery purchases is up by 20%, and about 70% of consumers have made at least one online grocery order in the past year.

According to research, 50% of consumers aged 25-44 are expected to make regular online grocery orders in the next few years, showing the trend’s expansion among younger demographics. Online grocery shopping for fresh food has also seen a rise of around 25%, reflecting the growing acceptance of purchasing perishable goods online.

Moreover, 40% of consumers reported purchasing health-conscious or organic products through these platforms. These statistics highlight the growing shift in consumer purchasing habits towards digital grocery shopping.

Online Grocery Market Dynamics

Several factors drive the dynamics of the online grocery market, with the increase in digital payments growing by over 25% year-on-year. Consumer behavior is rapidly evolving, with more than 60% of online grocery shoppers using mobile apps for convenience.

Furthermore, the market is witnessing an increasing preference for subscription models, with more than 20% of online grocery buyers engaging in weekly or monthly subscription services.

Technological improvements, such as AI-driven personalized shopping experiences, have driven a 15% increase in customer satisfaction. The emphasis on sustainable practices is also growing, with over 30% of consumers favoring platforms that offer eco-friendly packaging.

Drivers of Market Growth

"Convenience and Flexibility"

Around 60% of consumers prefer online grocery shopping because of its convenience, with 35% of shoppers specifically noting time savings as a key driver. More than 45% of consumers are likely to shop for groceries online during busy hours, and a significant portion, over 50%, reports a preference for home delivery services.Over 50% of online shoppers benefit from personalized experiences driven by AI, which has been shown to increase repeat purchases by 20%. Over 30% of users are attracted to platforms that offer seamless app experiences, contributing to this market’s steady growth.In developing regions, online grocery shopping adoption has grown by more than 40%, with 25-35% of consumers in major cities opting for online platforms for their grocery needs.

Market Restraints

"Delivery Costs"

Delivery charges have been a major concern, with nearly 40% of consumers reporting that high shipping fees prevent them from making regular online grocery purchases. About 25% of shoppers find the minimum order requirement to be a deterrent, which impacts smaller, frequent purchases.The costs of fulfillment are significant, and more than 35% of online grocery retailers struggle to maintain profitability due to high operational costs, including inventory management and packaging. Additionally, 30% of retailers face logistical difficulties related to maintaining cold chain logistics for perishable goods.About 25% of customers complain about the limited selection of fresh produce or specialty products available online, and nearly 30% of shoppers believe online platforms cannot compete with physical stores' variety.

Market Opportunities

"Health and Wellness Products"

A significant 40% of online grocery shoppers are actively seeking healthy or organic food options, making this a lucrative market segment. Furthermore, 25% of consumers are increasingly looking for vegan and gluten-free products, driving the demand for specialized grocery categories.Subscription-based services have witnessed a 20% increase in adoption, and approximately 30% of consumers are willing to commit to monthly deliveries of essential items. This model not only provides a steady stream of revenue but also builds brand loyalty.In emerging markets, internet penetration has increased by more than 30% over the past few years, offering significant opportunities for online grocery retailers. With over 20% of these regions' population adopting online shopping, growth in these areas presents new revenue opportunities.

Market Challenges

"Logistical Complexities"

More than 30% of online grocery retailers face challenges related to inventory management, especially for perishable goods. This leads to a rise in operational costs by over 25%, and on-time delivery can be a concern for nearly 20% of online shoppers.The competition is fierce, with over 50% of online grocery consumers showing brand loyalty to just a handful of major players. Smaller platforms struggle to maintain market share, leading to a 15% year-over-year increase in market consolidation among top retailers.Ensuring product quality during transit remains a key challenge for online grocery retailers. Around 25% of consumers have reported dissatisfaction with the quality of perishable items, and around 20% of items are returned due to quality concerns.

Segmentation Analysis

The online grocery market is segmented by type and application, with distinct growth patterns emerging across these categories. For instance, a significant portion of the market, approximately 60%, is driven by packaged foods, while fresh foods account for nearly 35%. On the application side, personal shoppers make up around 70% of the market, with business customers accounting for 25%. These segmentation figures indicate the importance of tailored strategies for different customer needs. With online grocery adoption rising in various regions, segmentation analysis allows stakeholders to identify key market drivers and opportunities for expansion.

By Type

• Packaged Foods: Packaged foods dominate the online grocery market, with over 60% of online grocery consumers opting for items such as snacks, beverages, and ready-to-eat meals. The growth of packaged food sales has been accelerated by the increasing preference for convenience and longer shelf life. In urban areas, approximately 55% of consumers choose packaged food for regular purchases, and nearly 45% buy these items on a monthly basis. This trend reflects the broader consumer shift toward time-saving solutions and the continued preference for pre-packaged, shelf-stable goods.
• Fresh Foods: Fresh foods, including fruits, vegetables, meats, and dairy, are gaining significant traction in the online grocery market, accounting for about 35% of all online grocery purchases. This segment has grown rapidly, with fresh food orders seeing an increase of around 30% in the last year alone. Consumer demand for high-quality, fresh produce is contributing to this growth, with 25% of consumers purchasing fresh foods online at least once a month. With improvements in delivery logistics and packaging, the share of fresh foods in the online grocery market is expected to continue growing steadily.

By Application

• Personal Shoppers: Personal shoppers represent the largest segment of the online grocery market, accounting for approximately 70% of total purchases. This segment is driven by consumers seeking the convenience of having groceries delivered directly to their homes. Around 60% of consumers in the 25-44 age group regularly shop online for groceries, with personal shoppers accounting for nearly 75% of these transactions. The demand for home delivery services continues to rise, as about 40% of personal shoppers order groceries at least once a week, underlining the popularity of online grocery shopping for convenience.
• Business Customers: Business customers, including restaurants and catering services, represent around 25% of the online grocery market. These customers prefer bulk purchases and value the time-saving benefits of ordering groceries online. About 15% of businesses report a shift from traditional procurement methods to online platforms, with nearly 20% of restaurant chains in urban areas relying on online grocery services for routine supplies. As the business customer segment grows, online grocery platforms are expanding their offerings and customizing solutions to meet the needs of B2B clients, such as bulk pricing and flexible delivery options.

Online Grocery Regional Outlook

The online grocery market is expanding across different regions, with varying growth rates observed. North America leads with the highest share, followed by Europe and Asia-Pacific. About 35% of online grocery sales globally are attributed to North America, where e-commerce adoption rates are higher. Europe has shown strong growth, particularly in countries like the UK, where over 30% of consumers shop for groceries online. In Asia-Pacific, the rise of digital platforms and increased internet penetration have contributed to growth, with nearly 25% of urban populations in key markets shopping for groceries online. The Middle East & Africa are experiencing steady growth, albeit at a slower pace.

North America

In North America, the online grocery market holds a dominant share, accounting for over 40% of global online grocery sales. Approximately 65% of U.S. consumers buy groceries online, with more than 50% of them shopping for groceries at least once a month. Over 25% of total grocery sales in the U.S. are now conducted online, making North America the largest regional contributor to the online grocery sector. The region’s robust logistics and infrastructure, along with a high internet penetration rate, have helped drive this adoption.

Europe

Europe is witnessing significant growth in the online grocery sector, with the UK, Germany, and France leading the charge. Nearly 30% of European consumers now purchase groceries online, and 40% of these shoppers make weekly purchases. In the UK, approximately 35% of grocery sales are completed online, reflecting strong demand for digital shopping solutions. The trend is also growing in Eastern Europe, where adoption rates have increased by 20%, with countries like Poland and Hungary seeing notable shifts toward online grocery platforms.

Asia-Pacific

Asia-Pacific is one of the fastest-growing regions for online grocery shopping, with online grocery adoption in urban areas exceeding 40%. In China, more than 50% of consumers in major cities shop for groceries online, and this is expected to increase by over 20% annually. The rise of mobile payment systems and online grocery platforms such as Alibaba and JD.com has contributed to this growth. Additionally, India and Southeast Asia are seeing a surge in online grocery adoption, with approximately 25% of urban consumers engaging in online grocery shopping.

Middle East & Africa

The Middle East & Africa region is experiencing growing interest in online grocery shopping, with the UAE and Saudi Arabia leading the trend. Around 25% of consumers in these regions have made online grocery purchases, and the adoption rate is expected to increase steadily. The Middle East’s tech-savvy population, combined with rising disposable incomes, is driving this growth. However, in Africa, the adoption rate remains relatively low, at just 10% in most countries, but it is gradually increasing due to better internet access and the expansion of e-commerce infrastructure.

List of Key Online Grocery Market Companies Profiled

• Carrefour
• Kroger
• Tesco
• Walmart
• Amazon
• Target
• ALDI
• Coles Online
• BigBasket
• Longo
• Schwan Food
• FreshDirect
• Honestbee
• Alibaba

Top Two Companies with Highest Share

• Walmart – Walmart holds the largest market share in North America, accounting for approximately 25% of the total market share.
• Amazon – Amazon captures around 20% of the global online grocery market, making it one of the top players in the industry.

Investment Analysis and Opportunities

The online grocery market offers significant investment opportunities driven by key trends like increasing consumer demand for convenience and digital shopping. Around 60% of urban consumers now purchase groceries online, with this percentage expected to continue growing steadily. The growing focus on technology, such as AI and logistics optimization, represents a key investment opportunity, with over 30% of major retailers increasing their technological investments. Subscription services are gaining popularity, with over 20% of consumers preferring regular grocery deliveries, making it an area for substantial investment. Additionally, over 25% of the market’s growth is expected to come from emerging markets, particularly in Southeast Asia, where internet penetration is expected to rise by over 30%. Investing in these markets offers high growth potential, driven by a more digitally engaged population.

Further, retailers that focus on last-mile delivery solutions, with 40% of the logistics market dedicated to improving this area, stand to benefit from a significant share of the growing online grocery sector. As mobile applications continue to dominate, with over 40% of consumers preferring to use mobile apps for their grocery shopping, there is ample room for investment in developing more efficient and user-friendly mobile platforms. Investors that align with these trends will have strong opportunities for growth in this expanding market.

New Products Development

Product innovation is key to the ongoing growth of the online grocery market, with more than 30% of consumers reporting that new products influence their purchase decisions. The demand for healthier products, such as gluten-free, vegan, and organic options, is increasing rapidly, with 25% of online shoppers actively seeking these categories. Over 20% of online grocery platforms have recently expanded their product lines to include a wider variety of health-conscious foods.

In addition to healthier products, 30% of consumers express a preference for sustainable and eco-friendly packaging, prompting online grocery retailers to introduce biodegradable or recyclable packaging options. Over 25% of platforms have started offering products in environmentally friendly packaging to meet this demand. To further cater to changing consumer needs, retailers are also focusing on offering faster delivery services. More than 35% of consumers expect next-day or same-day delivery options, making this a major area of innovation and development for online grocery companies.

Moreover, personalized shopping experiences have become a major selling point for platforms. Around 30% of consumers report that they are more likely to buy products that are recommended based on their browsing history and preferences, pushing platforms to integrate more advanced AI-driven recommendation systems. These innovations reflect the market's broader shift toward more personalized, health-conscious, and sustainable grocery shopping options.

Recent Developments by Manufacturers in Online Grocery Market 

In 2023 and 2024, key players in the online grocery market have made several strategic advancements to stay competitive. Walmart introduced AI-powered shopping recommendations, with 30% of its consumers engaging with the new system. Additionally, Walmart expanded its same-day delivery service to 25% more cities, addressing consumer demand for faster and more reliable delivery. By mid-2024, the company had increased its delivery capacity by 20% to meet the growing demand.

Amazon Fresh also made strides by expanding into 40% more urban areas in 2024, adding a substantial number of cities to its service network. The platform introduced new subscription services, with 20% of Amazon Fresh users opting for regular delivery plans. Amazon also improved its delivery speed, with over 50% of deliveries now reaching customers within a 24-hour window, a significant improvement in efficiency.

In Europe, Tesco launched eco-friendly packaging for over 15% of its grocery products in 2023, with an additional 20% of their product range set to follow suit by 2024. This move aligns with the rising consumer demand for sustainability, with around 25% of European consumers indicating they prefer retailers that offer eco-friendly products.

Report Coverage of Online Grocery Market

This report offers an in-depth analysis of the online grocery market, covering key aspects such as market drivers, trends, segmentation, and regional insights. It highlights the continued growth of the market, with urban consumers accounting for over 60% of online grocery purchases. The report also outlines the increasing investment in technology, logistics, and last-mile delivery, with over 30% of retailers focused on improving these areas to meet rising demand.

Furthermore, the report details regional developments, with North America accounting for over 40% of the global online grocery market share, and Europe showing strong growth in eco-friendly and sustainable product offerings, representing 30% of the region’s grocery sales. In Asia-Pacific, the adoption rate has surged, with 50% of urban consumers in China now shopping for groceries online. The Middle East & Africa, though slower in adoption, have experienced a growth of 25% in online grocery shopping in the past year.

The report also covers recent developments in product innovation, with 30% of consumers seeking healthier and more sustainable grocery options, and new delivery models being introduced by major players like Amazon and Walmart. These developments reflect the evolving demands of the modern consumer and the increasing role of technology in shaping the future of the online grocery industry.