Market Overview:
The online grocery market is experiencing rapid growth, driven by surge in quick-commerce and hyperlocal fulfillment, integration of generative AI and personalization, and government digital infrastructure initiatives. 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.
Download a sample PDF of this report: https://www.imarcgroup.com/online-grocery-market/requestsample
Our report includes:
- Market Dynamics
- Market Trends and Market Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Growth Factors in the Online Grocery Market
- Surge in Quick-Commerce and Hyperlocal Fulfillment
The global online grocery market is being significantly propelled by the rise of "quick-commerce," where delivery times have been slashed from days to mere minutes. Companies like Zepto and Swiggy Instamart are leading this shift by deploying thousands of dark stores—small, strategically located warehouses—within high-density urban areas. In late 2025, reports indicated that major platforms in India reached milestones of delivering essentials in 100 cities within an average of 10 minutes. This speed is supported by heavy capital injections; for instance, Blinkit recently allocated 370 crore for the expansion of its warehousing and cold storage network. By providing immediate gratification for impulse purchases and last-minute needs, these platforms have transformed online grocery from a planned activity into a spontaneous convenience. This logistical evolution ensures that fresh produce and dairy remain high-quality, meeting the demands of time-constrained urban consumers globally.
- Integration of Generative AI and Personalization
Technological integration, specifically through artificial intelligence, is a primary engine for current industry expansion. Retailers are utilizing AI-driven demand forecasting and machine learning to optimize inventory management, which drastically reduces food waste and operational overhead. Beyond the back-end, AI is revolutionizing the customer journey through hyper-personalized shopping experiences. Modern platforms now use predictive analytics to analyze past purchase history, offering "smart reordering" reminders and tailored product bundles that increase average order values. Major industry players like Amazon and Walmart have integrated AI-powered chatbots to assist with real-time order tracking and product discovery, making the digital shelf more intuitive than physical aisles. Current data shows that these personalized recommendations are a significant factor in user retention, as tech-savvy demographics, particularly millennials and Gen Z, increasingly prefer apps that anticipate their dietary needs and household cycles.
- Government Digital Infrastructure Initiatives
Strategic government interventions and the democratization of digital commerce are unlocking massive growth in previously untapped markets. A prime example is India’s Open Network for Digital Commerce (ONDC), which aims to break the dominance of large e-commerce entities by enabling small-scale grocers and local "Kirana" stores to list their products on a unified, open protocol. By late 2025, thousands of micro-enterprises and Fair Price Shops had successfully onboarded these digital networks, gaining access to a nationwide customer base. Similar initiatives in other regions focus on improving high-speed internet penetration and seamless digital payment systems like UPI, which eliminate transaction friction. These policy-driven frameworks reduce the cost of customer acquisition for sellers and provide consumers in Tier-2 and Tier-3 cities with access to the same variety and pricing found in metros. Consequently, the industry is witnessing a diversification of its seller base and a surge in first-time online shoppers.
Key Trends in the Online Grocery Market
- Expansion of Sustainable and Ethical "Green" Delivery
Environmental consciousness has moved from a niche preference to a dominant market trend, with 69% of consumers reporting that sustainability is a core factor in their purchasing decisions. Online grocers are responding by overhaulng their supply chains to include zero-emission delivery fleets and plastic-free packaging. For example, in 2025, partnerships between retailers and packaging innovators led to the introduction of recycled polymer containers specifically designed for high-speed grocery transit. Many platforms now offer "Green Slots," allowing customers to choose delivery times when a vehicle is already in their neighborhood to minimize carbon footprints. Furthermore, there is a visible shift toward sourcing from local organic farmers to reduce "food miles." Swiggy’s recent collaboration with organic certifiers to bring dozens of certified staples to metro markets highlights how retailers are aligning with the eco-friendly values of the modern shopper.
- Dominance of Private-Label and Value-Based Offerings
In response to global inflationary pressures and a heightened focus on value, online grocery platforms are rapidly expanding their in-house or "private-label" brands. Data suggests that nearly 50% of global shoppers are now choosing private-label products over traditional national brands due to their perceived balance of quality and affordability. Retailers like Albertsons and Tesco have reported significant digital sales growth by positioning these brands as premium yet cost-effective alternatives for pantry staples. This trend is bolstered by the digital platform's ability to use "nudge" marketing, such as displaying the private-label alternative alongside a branded item at checkout. By controlling the entire production and pricing chain, platforms can offer deeper discounts and loyalty rewards on these items, effectively capturing budget-conscious consumers while maintaining healthier profit margins compared to third-party goods.
- Rise of Subscription-Based Grocery Models
The "set-it-and-forget-it" economy is firmly taking root in the grocery sector through the proliferation of subscription and membership models. Large retailers are shifting from one-time transactions to recurring revenue streams by offering "Pro" or "Gold" memberships that provide unlimited free deliveries, exclusive discounts, and early access to new products. Statistics from 2025 show that users with active subscriptions place orders nearly three times more frequently than non-members, with average monthly spending reaching record highs. These models often include automated replenishment for high-frequency items like milk, eggs, and detergents, which ensures household staples never run out. This trend not only provides consumers with significant savings and convenience but also allows retailers to better predict demand and streamline their logistics, making the entire grocery ecosystem more efficient and customer-centric.
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 lead the market with around 28.9% share in 2024, driven by universal demand and convenience for everyday cooking.
By Business Model:
- Pure Marketplace
- Hybrid Marketplace
- Others
Pure Marketplace dominates the market by connecting sellers and buyers without inventory ownership, allowing for a vast assortment of products and scalability.
By Platform:
- Web-Based
- App-Based
Web-Based platforms are key to the online grocery market, offering comprehensive product views and easy navigation for users who prefer larger displays for research.
By Purchase Type:
- One-Time
- Subscription
Subscription leads the market with around 58.0% share in 2024, providing convenience and automation for regularly used products through personalized experiences.
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
Asia Pacific accounts for the largest market share of over 58.3% in 2024, fueled by digital adoption, innovative e-commerce platforms, and the integration of online and traditional retail.
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.
Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: [email protected]
Tel No:(D) +91 120 433 0800
United States: +1-201971-6302