Online Grocery Market to USD 2789.1 Billion by 2032, Owing to Rising Demand for Convenience and Rapid Urbanization

The online grocery market is experiencing robust growth due to increasing consumer preference for digital platforms and delivery logistics.

AUSTIN, TX, UNITED STATES, January 30, 2025 /EINPresswire.com/ -- The SNS Insider report indicates that the Online Grocery Market size was valued at USD 369.2 billion in 2023 and is expected to grow to USD 2789.1 billion by 2032, at a CAGR of 25.22% over the forecast period of 2024-2032.

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Keyplayers:
Target Brands, Inc., Tesco.com, The Kroger Co., Walmart, Alibaba.com, Amazon.com, Inc., Instacart, JD.com, Supermarket Grocery Supplies Pvt. Ltd., AEON CO., LTD., Inc.

Online Grocery Market Thrives with Technological Advancements, Convenience, and Post-Pandemic Digital Adoption
The online grocery market has seen big growth over the last few years due to technology and changes in consumer behavior. With Urbanization and a fast-paced lifestyle, there is an increase in demand for convenience and time-saving shopping. Online grocery platforms provide a frictionless experience, letting customers shop for groceries from home, compare prices between products and services as well as purchase groceries without stepping out of their front door. The ease of access, combined with subscription models and instant delivery, has changed the paradigm of grocery shopping. These platforms leverage AI and machine learning to provide personalized recommendations that benefit user experience and customer retention. Retailers are broadening their product ranges as well as streamlining delivery logistics, and they are doing this to cater to the ever-growing demand. The online grocery market is set for long-term expansion, driven by high levels of digital penetration globally particularly within emerging economies.

By Platform: App-Based Segment Dominates While Web-Based Registers Fastest Growth
The app segment dominated the market and generated the highest revenue share of 60% in 2023, owing to the proliferation of smartphone penetration and ease of mobile apps. Features like real-time tracking, personalized notifications, and seamless user experience have made app-based platforms the go-to choice of consumers. The segment is likely to remain on top, as retailers continuously improve their mobile app features.

The web-based segment is estimated to be the fastest-growing CAGR during 2024-2032, primarily due to an increase in desktop and laptop devices used for online shopping. The increasing internet penetration among older age groups, who tend to prefer larger screens for web browsing, along with improved website designs and safe payment gateways are driving growth in this segment.

By Delivery: Schedule Delivery Leads While Instant Delivery Gains Momentum
Driven by the convenience and on-demand availability it offers to the customers, the Schedule Delivery segment dominated the market and captured the majority share of more than 59% of the market in 2023, with customers preferring convenience and flexibility to plan the deliveries according to their schedules. Due to a reliable scheduled delivery promise, retailers are pushing the growth of this segment with loyal customers.

The instant delivery segment is projected to grow at the fastest CAGR from 2024 to 2032– owing to growing consumer demand for same-day or even hourly delivery services. This is being driven by retailers investing in logistics solutions and local distribution centers.

By Purchase: Subscription Models Dominate While One-Time Purchases Show Rapid Growth
Subscription-based purchases led the market in 2023, as they provide consistent savings and convenience for regular buyers. Retailers offering customizable subscription plans have seen higher customer retention rates.

One-time purchases are expected to grow at the fastest CAGR during 2024-2032, driven by new customers exploring online grocery platforms and those seeking occasional purchases without long-term commitments.

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Asia-Pacific Leads the Online Grocery Market, While North America Grows Fastest with AI-Driven Innovations
Asia-Pacific held the largest share of more than 62% the online grocery market in 2023, driven by rapid urbanization, increasing disposable incomes, and a growing preference for convenience. Countries like China and India lead the region due to their large populations, increasing internet penetration, and strong presence of local e-commerce giants. The region's well-established digital payment systems and investments in logistics infrastructure further bolster its dominance in the online grocery market.

North America is expected to register the fastest CAGR during the forecast period of 2024-2032. The growth is fueled by high internet penetration, technological advancements, and the increasing adoption of app-based grocery platforms. The U.S., in particular, is witnessing a surge in demand for subscription-based and instant delivery models, driven by consumer preferences for convenience and time efficiency. The expansion of AI-driven services and innovative delivery solutions also supports the rapid growth in the region.

Amazon Fresh Expands Ultra-Fast Delivery, While Walmart Enhances Online Shopping with AI-Powered Assistants in 2024

In January: Amazon Fresh announced the expansion of its ultra-fast grocery delivery services to 10 new cities in the United States, aiming to enhance customer reach.

In February: Walmart introduced AI-powered shopping assistants on its online platform to provide personalized product recommendations.

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