Latest News- Online Grocery Market: Food products is expected to lead the Product segment during 2025-2029

The Online Grocery Market is being driven by Increased popularity and adoption of e-commerce platform

The Online Grocery Market is expected to grow at a CAGR of 18.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 1535.6 billion. The global market for functional food and beverages is experiencing significant growth due to increasing consumer awareness and preference for products that offer health benefits beyond basic nutrition. These benefits include enhanced immunity, improved cognitive function, heart health, digestive health, hydration, and electrolyte replacement, as well as better intestinal flora and gut function. With consumers prioritizing non-traditional fitness activities and seeking convenient sources of nutrition, online sales of functional food and beverages are surging. This trend is driven by the growing demand for these products and the convenience of shopping for them online. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Product
  • Food products
  • Non-food products
• Type
  • One time customers
  • Subscribers
• Delivery Mode
  • Home delivery
  • Click and collect
• Product Type
  • Fresh produce
  • Breakfast and dairy
  • Snacks and beverages
  • Staples and cooking essentials
  • Others
• Geography
  • APAC
    • China
    • India
    • Japan
  • Europe
    • UK
    • France
  • North America
    • Canada
    • US
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increased popularity and adoption of e-commerce platform
• Rapid growth in e-commerce
• Growing popularity of fast delivery services

However, the market also witnesses some limitations, which are as follows:

• End-user perception of online grocery shopping
• Huge competition from offline retail stores
• Lack of proper infrastructure in developing countries

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Market Scope in Online Grocery Market Research Report

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Research Analysis Overview

In the era of urbanization, tech-savvy consumers turn to online grocery marketplaces for convenience. Grocers offer digital platforms for ordering household products and household essentials with online payments and contactless delivery. Wide product selection, time-saving benefits, and discounts are key attractions. Small-scale grocers join the fray, leveraging AI and ML for supply chain management and freshness. Digital platforms cater to organic and locally sourced groceries, even drone deliveries, ensuring freshness and convenience.

Market Research Overview

The global broadline retail market encompasses the income generated by entities offering retail services, particularly in consumer discretionary merchandise sectors such as online retailers and marketplaces, department stores, and third-party platforms. According to Technavio, the market size is determined by the revenues of Internet retailing service providers, door-to-door retailers, department stores, and other general merchandise companies, including those facilitating online consumer product and service marketplaces. Factors fueling market expansion include the expanding use of sophisticated mobile devices and substantial Internet penetration, empowering consumers to access on-demand digital offerings, particularly in urban areas. Key players in the online grocery market include grocers, food-delivery platforms, and small-scale retailers. Consumers increasingly prefer contactless delivery, online payments, and discounts to optimize their shopping experience. Brand awareness, quality, and milk products are crucial considerations for retailers seeking to differentiate themselves in this competitive landscape. Service fees remain a significant concern for both retailers and consumers, necessitating ongoing innovation and efficiency improvements.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/