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Online Grocery Market Size

Report ID: GMI4870
Published Date: Nov 2020
Report Format: PDF

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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.

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Online retailers are developing an efficient supply chain to reduce delivery timelines, which will positively influence the market demand. For instance, in June 2020, Paytm Mall, an e-commerce firm, announced its plan to implement same-day hyperlocal delivery of groceries to diversify its offerings to customers. The strategy has enabled it to deliver grocery essentials quickly to consumers in Tier-II and Tier-III cities across India during the COVID-19 lockdown period.

Online grocery market players have observed a sudden increase in their quarterly revenue in FY2020 on account of the temporary closure of several brick & mortar grocery stores. In April 2020, BigBasket, an online grocery store in India, reported 84% growth in the number of new customers compared to pre-COVID-19, while the retention rate grew by around 60%.

Online Grocery Market Report Attributes
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:	Attractive marketing strategy and promotional activities by key players Emerging technology such as voice assistance and delivery robots in North America Adoption of robust business model by market leaders to target small towns in Europe Rising demand for fiction free shopping in Asia Pacific Growing investments to develop e-commerce industry in Latin America and MEA
Pitfalls & Challenges:	Management of perishable groceries High operating costs

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Changing consumer behavior related to grocery shopping has encouraged market leaders to offer a cost-effective online experience, thus expanding their offerings and customer loyalty. However, diminishing inventory & restock ability and the lack of operational manufacturing facilities may limit industry expansion.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The global market share for online grocery exceeded USD 190 billion in 2019 and is set to grow at nearly 28% CAGR through 2026 with rising urbanization and thriving e-commerce sector in developing economies.

Owing to the convenience and easy accessibility to high-quality fresh groceries, the UK online grocery market revenue from the fresh produce segment is anticipated to record over 32% CAGR through 2026.

The Europe online grocery industry held over 30% share in 2019 and will gain substantial growth due to the presence of leading retail grocery chains and the recent concerns about the COVID-19 pandemic.

The market share of subscription based purchase options will expand at nearly 30% CAGR through 2026 owing to benefits like flexibility, scheduled home deliveries, and easy cancellation.