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Table Of Content
July 2024
The global online grocery market size is calculated at USD 73.45 billion in 2025 and is forecasted to reach around USD 623.70 billion by 2034, accelerating at a CAGR of 26.83% from 2025 to 2034. The Asia Pacific online grocery market size accounted for USD 44.07 billion in 2025 and is expanding at a CAGR of 26.93% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global online grocery market size was estimated at USD 57.91 billion in 2024 and is anticipated to reach around USD 623.70 billion by 2034, expanding at a CAGR of 26.83% from 2025 to 2034.
Artificial intelligence is bringing much-needed change in the industry by bringing in more aspects of personalization, operational efficiency, and good customer experience. Behavior analysis, browsing history, and past purchases are what AI is working on to recommend products, offer discounts, and display shopping interfaces accordingly. AI keeps inventory management at uptight levels, performing automations of some of their annoying tasks while offering dynamic price-setting functionalities based on real-time market situations. Additionally, AI smoothens the interaction using chatbots, visual search, and voice shopping while optimizing logistics from the time delivery happens to fuel consumption. It finally leads to less overstock and food waste, saving costs and augmenting efficiency to provide top-class, highly personalized, and economical shopping experiences for online grocery outlets.
The Asia Pacific online grocery market size was evaluated at USD 34.75 billion in 2024 and is predicted to be worth around USD 377.34 billion by 2034, rising at a CAGR of 26.93% from 2025 to 2034.
Asia Pacific dominated the global online grocery market with the largest market share of 60% in 2024. North America is forecasted to rise during the forecast period. Apart from these nations, India and China are considered to be very high potential markets for the platform. Due to digitization in India and China, which are Asia Pacific markets are expected to have a growth. The coronavirus lockdown had helped in a significant rise in online grocery sales in these regions.
The various government initiatives that are aimed at digitally empowering these nations, this market is expected to grow during the forecast. US is witnessing a steady growth in this platform. Several key players, Walmart Amazon.com Inc, Instacart etc. are all from North America.
The online grocery market is growing rapidly as the preferences of the consumers are changing due to the pandemic and the growth of the e-commerce industry. The global pandemic has brought this platform to the center stage. Previously, high e-commerce fees or not-so-user-friendly website designs had stunted the growth of this market. Apart from the pandemic, other factors have led customers to adopt this platform.
Previously, when all the grocery was bought from shops, now there is a shift to online grocery stores. Items of personal care, snacks, packaged foods, dairy, fresh meat, and frozen food have all seen a significant rise.
The United Nations Environment Programme (UNEP) reported in 2024 that major grocers are integrating sustainability into online operations, including low-emission packaging and optimized last-mile delivery.
Major online stores are providing services that help in placing the order and collecting it on the same day. This helps in the rapid growth of the services market. The click-and-collect concept is adopted to enable a contactless shopping experience.
Shopping online helps in saving the time required in traveling up and down to the store, collecting the things and prevents wastage of fuel or gas. Customers have an advantage of a fully stocked store even if you try to place an order at midnight. Online grocery shopping will help in reduction of the carbon dioxide emissions compared to the individual household trips for such shopping. The tendency of impulse buying within is turned down during online shopping.
The feature of price comparison provided by these platforms makes the life of the housewives easy and helps save their money. Searching the products online is also easy as compared to the shops. Many groceries store sites help you with your shopping list that you last ordered, so this also helps in reordering the items. It is also less stressful as compared to dealing with the busy grocery store, when everyone else is there during the peak hours.
There is a change in the preference for grocery shopping through online channels due to changes in technology due to urbanization and shift in consumer shopping habits. The growing disposable income and attractive discounts that are offered by the online grocery stores is driving the market. Low service fees and easy availability of time slots is also helping the market grow. The options offered by online grocery stores are more than the conventional stores. A hectic lifestyle has also led to an increase in the market share.
The availability of smartphones or smart devices at home, along with Internet connectivity, have also led to a growth in the online sales. Increased liking for hassle free shopping and a growing inclination towards the ecommerce platforms is also expected to help the market grow. The online grocery stores also provide some attractive offers like cash back, discounted offers and express delivery options.
| Report Coverage | Details |
| Market Size by 2034 | USD 623.70 Billion |
| Market Size in 2025 | USD 73.45 Billion |
| Growth Rate from 2025 to 2034 | CAGR of 26.83% |
| Largest Market | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Product, Delivery, Purchasers, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Convenience and Time Savings
Online grocery stores offer a high level of convenience for their clients; groceries can be ordered everywhere from anywhere, at any time. The need to drive to a physically existing grocery store, standing in long queues, keeping track of whatever they had to buy, and making multiple errands are all eliminated from the equation, thus saving an enormous amount of time and effort Saving repeated inputs into shopping lists, setting up recurring orders, and express delivery are some other attributes that add more weight to ease of use of such platform systems so that online grocery finds fewer traditional ways of grocery purchase.
High Operational and Logistics Costs
Public grocery club necessarily encountered considerably from higher operational and logistics cost. Building robust supply chains with specialized cold storage for perishables and last-mile delivery at a timeliness requires a lot of investment. Hence, such expenses inflict upon profits, especially on smaller or newer platforms. In addition, returns handling and all the difficulties in ensuring product standards while trying to vary demand make operations quite complex, causing such financial and logistical weight to keep the platform tied back in its growth capacity, thereby delaying expansion into newer markets and making long-term sustainability a challenge.
Using Technology and Personalization
Growing big has been an opportunity for the online grocery trade through the aid of technology and personalized services. AI and ML give platforms the ability to analyze customer behavior and recommend products to them, enhancing user satisfaction while doing so. Websites and mobile applications that provide smooth user experiences, accepting voice search along with numerous payment options, will increase the engagement and retention of users. They could also be integrated with smart kitchen appliances that register orders for goods for users based on actual consumption behavior and expiry tracking. All combined, these innovations create convenience in the life of the customer, thereby engendering loyalty and eventually creating avenues for selling, hence establishing technology as one of the growth levers.
All the staples and the staples and the cooking essentials segment accounted for the highest market share of 34% in the year 2024. Staples include the demand for grains, oil, which are necessities in any household. Especially across Asia Pacific apart from the staples the dairy market is expected to grow at par with the staple segment. Due to doorstep delivery available for the milk and milk products this market is growing. That is expected to be a 24% growth in the fresh produce segment. Due to availability of meat and seafood online this market is also expected to rise in the forecast period. The breakfast and dairy segment is expected to grow at a notable CAGR over the forecast period. Online grocery stores cover a wide range of products, like the cereals, vegetables, fruits, bakery,breakfast products, Poultry and meat.
Based on the delivery type the segment can be further classified into click and collect or home delivery. The home delivery option is expected to have a larger market share during the forecast period. The click and collect process allows the customer to place an order through the online website for the products and while selecting the option for pick up. The benefit of click and collect order is that the delivery is within on the same day or the next day. So it helps in saving time and the shipping costs.
The segment can be further classified as one-time customers or subscribed customers. The subscription services are rapidly growing and it's playing a niche role in driving the market. It helps in allowing the customers to have free delivery, cash back offers and priority of having the earlier slots for delivery. It helps in building trust among the customers and also encouraging customers to opt for subscriptions that are annual. In the recent years, there has been a rise of online shopping subscriptions. In order to retain the customers, subscription services are provided which provide rewards or savings.
By Product
By Delivery
By Purchasers
By Region
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