Online Grocery Market Size
Online Grocery Market size surpassed USD 190 billion in 2019 and is estimated to expand at around 28% CAGR between 2020 and 2026. Rising urbanization and the flourishing e-commerce sector in developing economies is a key factor driving the industry growth.
Online stores are working on making their supply chains more efficient so that deliveries take less time. This will have a favorable effect on market demand. For example, Paytm Mall, an online store, said in June 2020 that it would offer same-day hyperlocal delivery of groceries to give shoppers more options. The plan has helped them fast distribute basic groceries to people in Tier-II and Tier-III cities in India during the COVID-19 lockdown.
In FY2020, online grocery retailers saw a sudden rise in their quarterly sales because many brick-and-mortar grocery stores had to close for a short time. BigBasket, an online grocery store in India, said in April 2020 that the number of new consumers had grown by 84% compared to before COVID-19, and the percentage of keeping clients had grown by almost 60%.
| Report Attribute | Details |
|---|---|
| Base Year | 2019 |
| Online Grocery Market Size in 2019 | USD 190 billion |
| Forecast Period | 2020 to 2026 |
| Forecast Period 2020 to 2026 CAGR | 28% |
| 2026 Value Projection | USD 1 trillion |
| Historical Data for | 2016 to 2019 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 298 |
| Segments covered | Purchaser Type, Category, Delivery Type, End-Use and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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Market leaders have had to offer a cheap online experience because of changes in how people shop for groceries. This has led to more products and more loyal customers. But the industry's growth may be limited by a lack of operating manufacturing facilities and the ability to resupply and reduce inventories.
Online Grocery Market Analysis
The UK online grocery market's fresh produce sector is expected to grow at a rate of more than 32% each year until 2026. About 40% of people in the country have bought fresh food online and had them delivered to their homes. Consumers like online grocery stores mainly because they are convenient and quick to get to, and they have a lot of high-quality fresh products. This has pushed businesses to come up with alternative business strategies that will make customers happier and help them stay competitive in the market.
Since the pandemic began, grocery retailers all around the UK have been working hard to keep up with the huge demand for home delivery. For example, Sainsbury's has added 1,000 more vehicles to accommodate 700,000 orders a week! To help as many customers as possible, Tesco, Asda, and Morrisons have also extended their delivery hours. "Click and collect" is another common choice. People order groceries online and then pick them up at a nearby store. A poll found that almost 70% of American shoppers like this strategy because it's quick and cheap. You can also check your products, pick them up when you want, and avoid paying for delivery. Retailers also gain by saving money on shipping and hiring more workers. And don't forget about subscription boxes! These have grown very popular, and by 2026, they should expand by more than 30%. They're great for folks who want their favorite groceries delivered on a daily basis without having to worry about running out or paying extra. It's like a delivery service only for you that makes life easier!
Europe online grocery market accounted for above 30% share in 2019. The presence of leading retail grocery chains and the growing popularity of online shopping in countries such as the UK, Germany, Spain, France, and Italy are driving the regional market growth. The COVID-19 pandemic is providing a significant short-term boost to the industry. According to Waitrose & Partners, a brand of supermarkets, out of 2,000 consumers in the UK, 60% have shopped online for groceries since the pandemic with 40% citing convenience as the primary reason.
Furthermore, the increasing focus of government administrations & financial organizations on promoting the usage of digital payment methods to contain the virus spread is likely to boost the market revenue. In March 2020, the European Banking Authority (EBA) directed payment firms to adopt contactless payments to reduce the risk of spreading the virus.
Online Grocery Market Share
The online grocery industry is highly competitive with the presence of multiple small and large players across the globe. Companies are engaged in acquisitions and partnerships to gain a competitive edge over other companies through expansion in new territories.
The key online grocery market participants include
- Koninklijke Ahold Delhaize N.V.
- mySupermarket Limited
- AmazonFresh, LLC
- Safeway, Inc.
- NetGrocer.com, Inc.
- My Brands Inc.
- ShopFoodEx
- Fresh Direct, LLC
- Schwan Food Company
- Walmart Stores, Inc.
These companies are investing in R&D activities to adopt innovative technologies and speed up delivery time for customers.
Impact of COVID-19 pandemic
The unprecedented outbreak of COVID-19 has emerged as a major factor for individuals shifting from brick and mortar stores to online grocery stores. According to a survey by Chicory, a New York-based digital shopper marketing platform, in October 2020, there were 18% more online grocery users compared to pre-COVID times.
In 2019, individual users in the Canada accounted for over 65% of the market revenue share. Consumers transitioning is compelling grocers to focus on improving their business strategies.
The online grocery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments
Market, By Category
- Dairy and breakfast products
- Fresh Produce
- Snacks and beverages
- Meat and seafood
- Staple and cooking essentials
- Others
Market, By Purchaser Type
- One Time
- Subscriber
Market, By Delivery Type
- Home delivery
- Click and collect
Market, By End-Use
- Individual
- Distributors
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- South East Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- GCC
- South Africa
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