Global Online Grocery Market by Product Type (Breakfast & Dairy, Staples & Cooking Essentials, Fresh Produce, Snacks & Beverages) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global online grocery market was worth USD 189.81 million in 2019. It is expected to grow at a 24.8% CAGR between 2020 and 2027. The market is expected to grow due to rising disposable income and people's growing preference for comfort. Customers are increasingly turning to online grocery shopping because it is convenient and easy. COVID-19, which has caused an increase in online grocery shopping, has resulted in customers purchasing groceries online to avoid the hassle of going to departmental stores and to limit their social contact. Although online grocery shopping has seen an increase in the recent impact of coronavirus, this virus is likely to have a positive impact on the market and change consumers' buying habits.

Market growth is being driven by the shift away from traditional shopping to online grocery shopping. Global e-commerce sales reached USD29 trillion in 2017, according to the United Nations Conference on Trade and Development. The number of online shoppers in the world grew to 1.34 billion, compared with 1.20 billion in 2016. This is due to technological advancements that have resulted in the adoption of various online retailers and a rise in disposable income among people living in developing countries.

The market is expected to grow due to a rising number of smartphone users over the forecast period. Smartphones are popular for online shopping because of their ease-of-use and ability to purchase products via mobile apps. Smartphone manufacturers are working hard to increase their sales. They also invest heavily in R&D to produce technologically advanced smartphones.

Internet of Things (IoT), helps retailers improve customer experience and efficiently manage inventory. Market growth is expected to be driven by the increasing adoption of IoT technology by retailers around the world. In 2018, Walmart partnered up with Microsoft Corporation to help accelerate its digital transformation, and offer a better shopping experience for its customers. The five-year agreement between the companies will see Walmart move significant portions of samsclub.com, walmart.com, and Azure to improve customer's online experience.

Online grocery market growth will be hampered by the inability to provide physical evidence that the products are actually fresh. People are also reluctant to shop online for groceries because they don't trust the products' freshness. Companies like Amazon, Alibaba, Target, and Target are working to overcome this problem by offering faster delivery and greater discounts to their customers.

Product Type Insights

The market can be divided into three types of products: fresh produce, breakfast, dairy, snacks, beverages, meat and fish, staples and essentials, and other. In 2019, the staples and cooking necessities segment held a significant share of more than 25%. This is due to the repeat shopping of staples such as food grains and essentials like oils that are vital requirements for many households in Asia Pacific. In the next seven year, the path to growth will be paved by changing lifestyles and increasing disposable income.

Due to growing demand for dairy products like yogurt, milk, and curd, the breakfast and dairy market is expected to grow at a CAGR of around 24% between 2020 and 2027. These products are essential for daily living and have a shorter shelf life than other products. These products can't be stored for longer periods of time and must be consumed within a specified period.

Regional Insights

North America accounted for almost 15% of the total market in 2019, accounting for a significant share. The high share can be attributed to several major players in the region as well as the increasing number of e-commerce sales. The U.S. Census Bureau estimates that e-commerce sales to U.S. retailers was worth USD 461 billion in 2017, compared with USD 397.3 billion in 2016.

Asia Pacific is expected to grow at a rate of 27.0% in the forecast period. This is due to the initiatives taken by India and China to promote digitalization in their respective countries. The Indian government launched the Digital India campaign in 2015 to empower the nation. According to IBEF, the country's internet users will increase from 636.7 Million in 2019 to 829 Million by 2021.

Shared Insights from the Online Grocery Market

This market is fragmented and has high levels of competition among major players. Walmart, JD.com, Inc., Alibaba.com, Amazon.com, Inc., and Rakuten are some of the major players in the market. These companies are focused on increasing their market presence through inorganic strategies like acquisitions, mergers and partnerships as well as collaborations. To expand its Indian business, Walmart bought 77% of Flipkart's stock in 2018 for USD 16 billion.

Walmart also announced its partnership in 2018 with Rakuten to open its first ecommerce store in Japan, in order to revitalize its Asian business. Companies are also focusing on adding additional features to their products to increase their market share and meet end-user needs.

The Report Covers Certain Segments

This report predicts revenue growth at both the country and global levels. It also provides analysis of industry trends for each sub-segment from 2016-2027. Up Market Research has divided the global online grocery market report by product type and location for this study.

• Product Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Fresh Produce

  • Breakfast & Dairy

  • Snacks & Beverages

  • Meat & Seafood

  • Staples & Cooking Essentials

  • Other

• Regional Outlook (Revenue USD Billion, 2016-2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • Middle East & Africa

These are the most frequently asked questions about this report

b. Global online grocery markets are expected to expand at a compound annual rate of 24.8% between 2020 and 2027, to reach USD 1.13 trillion by 2027.

b. With a share of 26.27%, the staples and cooking necessities segment dominated online grocery markets in 2019. This is due to the repetitive buying of staples such as food grains and essential oils that are vital requirements for many households in Asia Pacific.

b. Walmart, JD.com, Inc., Alibaba.com, Amazon.com, Inc., and Rakuten are some of the key players in the online grocery market.

b. The key factors driving online grocery market growth are the COVID-19 outbreak, which has resulted in an increase of customers shopping online for groceries. Also, rising disposable income and people's growing desire to shop from the convenience of their own homes are two of the most important.

b. Global online grocery market size was USD 189.81 million in 2019, and is projected to rise to USD 1.1 trillion by 2027.

Up Market Research published a new report titled “Online Grocery Market research report which is segmented by Product Type (Breakfast & Dairy, Staples & Cooking Essentials, Fresh Produce, Snacks & Beverages), By Players/Companies Snacks & Beverages, Meat & Seafood, Others, Product Type Outlook (Revenue USD Billion 2016 - 2027)Fresh ProduceBreakfast & DairySnacks & BeveragesMeat & SeafoodStaples & Cooking EssentialsOthers, Breakfast & Dairy, Staples & Cooking Essentials, Fresh Produce”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Online Grocery Market Report Segments:

The market is segmented by Product Type (Breakfast & Dairy, Staples & Cooking Essentials, Fresh Produce, Snacks & Beverages).

Online Grocery Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Online Grocery Market

Overview of the regional outlook of the Online Grocery Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Online Grocery Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Online Grocery Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Breakfast & Dairy

                2. Staples & Cooking Essentials

                3. Fresh Produce

                4. Snacks & Beverages

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Online Grocery Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Online Grocery Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.