Global Online Grocery Shopping Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Fresh Produce, Dairy Products, Meat & Poultry Products, Others), By Mode Of Payment (Cash On Delivery, Prepaid), And By Geography - Forecasts From 2022 To 2027

The global online grocery shopping market is estimated to grow at a CAGR of 10.04% to reach a market size of US$318.073 billion in 2027 from US$162.781 billion in 2020.

The global online grocery shopping market is growing due to increasing internet penetration and connected devices such as smartphones and tablets. The online grocery shopping market is growing due to increasing advancements in technology, ease, and convenience of shopping online as various products are available at a saving in cost and time. The major reasons for the start of online grocery shopping are the increasing internet penetration all over the world and the growth in smartphone devices that are directly connected to the internet. According to World Bank data, the number of people using the internet has grown two-fold in a decade. This increase in usage of the internet has given rise to the number of people using internet applications around the world.

The increasing workforce engaged in work with hectic schedules and tedious commuting is boosting the demand for online grocery shopping services with the option of buying essential groceries online and getting them delivered at home conveniently. The ease of payment methods available for online shopping and improving customer experience is further increasing the demand for online grocery shopping.

Growing demand for online grocery shopping is encouraging companies to expand their market share in emerging economies while providing ample services to their customers, thereby fueling the global online grocery shopping market growth. Moreover, companies are opting to sell their food products online as it helps in saving costs while expanding their consumer base. Many grocery providers are even exclusively launching their new products on these online platforms as a part of advertising. The emerging popularity of digital wallets is also supporting market growth by making it easier for people to make a hassle-free online order.

The global online grocery shopping market is segmented by product, payment method, and geography. The market segmentation based on the product is done as fresh produce, dairy products, meat & poultry products, and others. The global online grocery shopping market is also segmented based on payment methods such as cash on delivery (COD) and prepaid.

Everything is easily available for online grocery shopping

The market for online grocery shopping is increasing due to the rise in demand for food and the ease of accessibility of various grocery products on various online platforms. The internet has made it easy for everyone to buy online, with a variety of options to choose from and at a discounted rate. The growing population of vegans worldwide is an opportunity for online grocery shopping. A lot of people are turning to a vegan diet by abstaining from using animal products like meat, eggs, and even dairy products. The major benefit of online grocery shopping is that you can select the products required, pay at the same time, and get them delivered on the same day or within 24 hours. This makes it more favourable than the traditional method of buying groceries from physical stores while waiting in a queue to make payments.

The ease of payment methods has increased people’s faith in online grocery shopping

There are not only a lot of options available for choosing food, but also several options for paying the total bill. Online grocery shopping allows options like paying at the time of delivery and prepaid payment. Cash on delivery has a significant market share in the global online grocery shopping market as people have more faith in paying in physical form than in online transactions. The prepaid method can also be used for paying for groceries by paying with credit or debit cards, directly from the bank that is through internet banking, or by wallet services available online. This kind of payment method is generally used by the younger generation as they are more technology-friendly, thus leading to the substantial growth of this payment method during the forecast period.

By geography, North America has a significant share of the market

Regionally, the global online grocery shopping market is classified into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. North America is expected to have a significant market share in the global online grocery shopping market due to the presence of large retailers who own big wholesale shops and provide online grocery shopping services.  The early adoption of advanced technology and services along with high awareness among consumers on how to use online grocery shopping apps is spurring the market growth of online grocery shopping in North America. The ease and convenience provided by online grocery shopping further increase the demand in the region.

 The Asia Pacific region is expected to be the fastest-growing regional online grocery shopping market. The market is tended to increase in developing countries like India and China due to urbanization in the countries. The changing lifestyle, growing disposable income, and an increase in the number of people working in multinational companies have increased the demand for online grocery shopping in the region. The growing penetration of the internet and smartphones is further increasing the demand for online grocery shopping services in the Asia Pacific region.

Recent Developments

• Kroger Co., the largest grocery retailer in North America, announced during its business overview in Orlando that it will extend its delivery services to include Birmingham as well as Austin and San Antonio, and Texas in 2022.
• Amazon announced in November 2021 that it had combined its Fresh and Pantry food businesses into one platform called Amazon Fresh. This website primarily sells groceries, though vegetables can also be purchased there.
• Anycart, a tech business, introduced the first online grocery shopping engine in May 2021. To ensure a frictionless experience for customers and major retailers during the pandemic and beyond, the software technology business has solved fundamental consumer hurdles in online buying.
• Lollipop AI introduced an online food store in June 2021 where customers could create their meals. The application enables users to create meal plans from recipes, automatically adding the necessary components to their shopping carts and recommending any other household necessities.

COVID-19 Impact on Online Grocery Shopping Market

COVID-19 is projected to have a favourable impact on the global online grocery shopping market. The epidemic caused a significant change in consumer purchasing behaviour, which boosted market expansion. To limit the spread of the epidemic, vendors implemented digital payment systems and provided contactless deliveries of necessities. Additionally, service providers used a variety of cutting-edge business models, including subscription-based or on-demand delivery, express or scheduled delivery, and other models, which also enhanced the market outlook.

Online Grocery Shopping Market Scope:

Segmentation

• By Product
  • Fresh Produce
  • Dairy Products
  • Meat & Poultry Products
  • Others
• By Mode of Payment
  • Cash on Delivery
  • Prepaid
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Taiwan
    • Others

Frequently Asked Questions (FAQs)

Q1. What will be the online grocery shopping market size by 2027?
A1. The global online grocery shopping market is estimated to reach a market size of US$318.073 billion in 2027.

Q2. What is the size of the global online grocery shopping market?
A2. Online Grocery Shopping Market was valued at US$162.781 billion in 2020. 

Q3. What are the growth prospects for the online grocery shopping market?
A3. The online grocery shopping market is estimated to grow at a CAGR of 10.04% over the forecast period. 

Q4. What factors are anticipated to drive the online grocery shopping market growth?
A4. The global online grocery shopping market is growing due to increasing internet penetration and connected devices such as smartphones and tablets.

Q5. Which region holds the maximum market share of the online grocery shopping market?
A5. North America is expected to have a significant market share in the global online grocery shopping market due to the presence of large retailers who own big wholesale shops and also provide online grocery shopping services.