Online Grocery Market Share, Growth & Trends Report 2025-2033

Market Overview:

The online grocery market is experiencing rapid growth, driven by convenience and time-saving features, expansion of digital infrastructure, and changing consumer preferences. 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", offers a comprehensive analysis of the industry, which comprises insights on the global online grocery market share. the global 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

• Convenience and Time-Saving Features

The demand for convenience is a significant driver of the online grocery market's growth. Consumers increasingly value the ability to shop for groceries from home, avoiding crowded stores and long checkout lines. Platforms like Instacart and Amazon Fresh allow users to order groceries with a few clicks, with same-day or next-day delivery options. For example, Instacart partners with local supermarkets to provide personalized shopping experiences, enabling customers to select specific produce or request substitutions. This convenience appeals to busy professionals, parents, and elderly individuals who prioritize time efficiency, fostering loyalty and repeat purchases as online platforms streamline the shopping process with user-friendly apps and flexible delivery schedules.

• Expansion of Digital Infrastructure

The growth of digital infrastructure, including widespread internet access and mobile technology, has fueled the online grocery market. High-speed internet and smartphone penetration enable seamless browsing, ordering, and payment processes. Retailers like Walmart and Kroger have invested heavily in mobile apps and websites to enhance user experience, integrating features like voice ordering and AI-driven product recommendations. For instance, Walmart’s app allows customers to scan items at home to build shopping lists, simplifying reordering. Improved logistics, such as automated warehouses and last-mile delivery networks, further support market expansion by ensuring faster and more reliable deliveries, making online grocery shopping accessible to a broader audience.

• Changing Consumer Preferences

Shifting consumer preferences toward healthier, sustainable, and personalized food options are propelling the online grocery market. Shoppers increasingly seek organic, locally sourced, or specialty products, which online platforms can offer through curated selections. For example, Thrive Market focuses on organic and non-GMO products, catering to health-conscious consumers with subscription-based models. Additionally, younger generations like Millennials and Gen Z prefer the flexibility of online shopping, valuing customization options such as dietary filters for vegan or gluten-free products. This trend encourages retailers to diversify their offerings and leverage data analytics to tailor recommendations, enhancing customer satisfaction and driving market growth.

Key Trends in the Online Grocery Market

• Rise of Subscription-Based Models

Subscription-based grocery services are gaining traction as retailers aim to build customer loyalty and ensure recurring revenue. Companies like HelloFresh and Blue Apron offer meal kit subscriptions, delivering pre-portioned ingredients and recipes directly to consumers’ doors. These services appeal to those seeking convenience and variety, particularly urban dwellers with busy lifestyles. For example, HelloFresh allows subscribers to choose from a rotating menu of global cuisines, catering to diverse tastes. Retailers like Amazon with its Subscribe & Save program also encourage regular purchases by offering discounts on recurring deliveries, creating a predictable shopping pattern and fostering long-term customer engagement.

• Integration of Advanced Technologies

The integration of advanced technologies like artificial intelligence, machine learning, and robotics is transforming the online grocery market. AI-powered algorithms analyze consumer behavior to offer personalized product suggestions, improving the shopping experience. For instance, Ocado, a UK-based online grocer, uses automated warehouses with robotic picking systems to process orders efficiently, reducing delivery times. Additionally, voice assistants like Amazon’s Alexa enable hands-free ordering, while chatbots handle customer inquiries in real-time. These technologies enhance operational efficiency and customer satisfaction, allowing retailers to scale operations and meet growing demand while maintaining a competitive edge in the market.

• Focus on Sustainability and Ethical Sourcing

Sustainability and ethical sourcing are becoming key trends in the online grocery market as consumers prioritize environmentally friendly practices. Retailers are adopting eco-conscious strategies, such as reducing plastic packaging and offering carbon-neutral delivery options. For example, Imperfect Foods specializes in delivering “ugly” produce that might otherwise go to waste, appealing to environmentally conscious shoppers. Additionally, platforms like Whole Foods Market emphasize ethically sourced products, such as fair-trade coffee or sustainably caught seafood, to align with consumer values. This trend encourages retailers to invest in transparent supply chains and partner with local farmers, enhancing brand trust and attracting eco-minded customers.

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.

Breakup By Region:

• 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.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

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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