Online Grocery Delivery Services Market Size to grow by USD 1120.4 billion between 2024-2028
According to a research report “ Online Grocery Delivery Services Market” by End-user (Individuals, Others) Product (Non food products, Food products) Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 1120.4 billion, at a CAGR of 25.2% during the forecast period. The e-commerce sector, specifically online grocery delivery services, has experienced significant expansion over the last decade. Factors driving this growth include the global increase in internet penetration, enabling access to a vast consumer base and promoting the omnichannel shopping experience. Developing markets, such as China and India, present lucrative opportunities due to their large populations and rising per capita income. Additionally, urbanization and the resulting traffic congestion and hectic work schedules have fueled consumer demand for convenient shopping models, such as online grocery delivery services.
Browse market data tables, figures, and in-depth TOC on “Online Grocery Delivery Services Market” by End-user (Individuals, Others) Product (Non food products, Food products) Geography (APAC, Europe, North America, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By End-user, the Individuals segment is projected to dominate the market size in 2024
The online grocery delivery services market encompasses a significant expansion beyond food items, with non-food products, which include cosmetics, personal care, and household cleaning supplies, representing the largest market segment. Swiggy's "everything delivery" strategy, enabling the consolidation of all riders into a single unit, optimizes fleet usage and lowers platform-wide discounts. Uber Eats' Super Bowl commercial in February 2022 showcased the delivery of non-food items, while Grubhub strengthened its partnership with 7-Eleven to further broaden their offerings. These strategic moves underscore the growing importance of non-food items within the online grocery delivery services sector.
By Product, Non food products segment is expected to hold the largest market size for the year 2024
The individuals segment holds the largest market share in the global online grocery delivery services market, expected to persist throughout the forecast period. This segment's growth can be attributed to the increasing preference for convenient shopping solutions, particularly among millennials and baby boomers. Factors driving this demand include time savings due to the absence of billing counter wait times, meal planner integration, increased savings from purchasing only necessary items, substantial discounts, detailed product descriptions, and the ability to save preferences and subscribe to timely delivery services. Furthermore, online grocery delivery eliminates the need for parking and transportation, ensuring access to high-quality products and minimizing returns and complaints, thereby reducing operational costs. Consequently, these benefits will fuel the expansion of the online grocery delivery services market through the individuals segment during the forecast period.
APAC is forecasted to hold the largest market size by region in 2024
The online grocery delivery market is experiencing significant growth as consumers increasingly prefer the convenience and time savings offered by this service. Key players in this sector are investing heavily in technology and logistics to streamline operations and enhance the customer experience. Strategic partnerships and collaborations are also crucial in expanding market reach and gaining a competitive edge. The market is expected to continue its upward trajectory, driven by the trend towards e-commerce and the increasing demand for contactless delivery solutions.
The Online Grocery Delivery Services Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The online grocery delivery services market is currently experiencing rapid growth, driven by the increasing urbanization, digitization, and changing consumer preferences. According to recent reports, the market is anticipated to expand at a CAGR of over 20% during the next five years. Suppliers, both local and international producers, are investing heavily in this sector to cater to the growing demand. Currently, the market is dominated by major players like Amazon, Walmart, and Alibaba, who are leveraging advanced solutions like AI and ML for personalized offerings and efficient logistics. The trend towards Meal Kits and Full basket-offerings is also gaining popularity, particularly among price-conscious and discretionary spending consumers. The macro-economic environment, including per capita expenses and economic areas, plays a significant role in the market's growth. The increasing use of smartphones and the Internet has made online grocery shopping more accessible, with mobile applications becoming a preferred choice for customers. Traditional grocery retailers are also entering the fray, recognizing the future prospects of this market. Warehouses and logistics are being upgraded to meet the demands of quick delivery and fresh produce. Anticipated future changes include the integration of AR and VR technologies for a more immersive shopping experience and the use of blockchain for supply chain transparency. Overall, the online grocery delivery services market is poised for significant growth in the coming years.
Market Research Overview
The Online Grocery Delivery Services Market has experienced significant growth in recent years, particularly due to the current pandemic situation and the increasing adoption of smartphones and internet usage. Analysts predict that staple meals, such as meat and seafood, fresh food, and dairy products, will continue to be in high demand as individuals seek time-saving options for their staple food needs. Retailers are responding to this trend by offering convenient delivery options and expanding their product offerings to include a wider customer base. The use of mobile apps and websites for shopping has become a convenient and convenient way for consumers to access fresh food and household items while practicing social distancing. The industry's turmoil has led to rapid digitization and urbanization, with new laws and developing technology driving rising investment requirements. Significant industry players, such as Meituan, Convenience stores, and Quick Commerce, are implementing advanced solutions to improve logistics and offer faster delivery times. The future prospects of the Online Grocery Delivery Services Market are anticipated to be bright, with current trends indicating continued growth in the cooking essentials category, including frozen foods, fresh produces, fruits & vegetables, and other household & grocery items. The market's success is influenced by macro-economic factors such as Internet connection speed, GDP per capita, and country-specific associations. User metrics, such as user-friendly websites and mobile applications, payment options, and easy access to door delivery, are essential for B2C enterprises to attract and retain customers. The revenue share of online grocery retailers is expected to increase as more consumers shift towards this convenient shopping method. Despite the challenges posed by the industry's turmoil, the future looks bright for online grocery retailers. With the continued adoption of smartphones and the Internet, the market is expected to follow an S-curve function, with exponential growth in the coming years. In conclusion, the Online Grocery Delivery Services Market is a rapidly growing industry, driven by consumer demand for convenience, freshness, and quality. Retailers are responding by offering a wider range of product offerings, convenient delivery options, and improved customer experience through mobile applications and websites. The market's future prospects are bright, with continued growth expected in the coming years as more consumers shift towards online shopping for their food and groceries.
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