PUBLISHER: The Business Research Company | PRODUCT CODE: 1961649
PUBLISHER: The Business Research Company | PRODUCT CODE: 1961649
Online grocery refers to the digital procurement of food and household items through websites or mobile applications, coupled with the convenience of home delivery or the option for customers to pick up their orders. Online grocery shopping serves as a convenient, efficient, and cost-effective alternative to traditional in-store grocery shopping, providing consumers with a wide selection of items that can be browsed and purchased from the comfort of their homes.
The primary products available in the realm of online grocery shopping include fresh produce, staples and cooking essentials, ready-to-eat food, snacks and beverages, bakery and confectionery items, dairy products, and breakfast and cereal options. Fresh produce, which includes vegetables, fruits, and other unprocessed plant-based items, is readily accessible through online grocery platforms. This method of shopping provides a straightforward, time-saving, and cost-effective alternative to traditional in-store purchases, offering a diverse selection of fresh food with assured quality. Consumers can place orders for these products through various platforms such as mobile applications and websites, with the convenience of choosing between instant delivery or scheduled delivery. Online grocery shopping caters to a range of end-users, including individuals, distributors, and other entities seeking a more efficient and convenient way to procure food and household items.
Tariffs have influenced the online grocery market by increasing the cost of imported food products, packaging materials, and cold-chain logistics equipment, leading to higher operational expenses for platforms. These impacts are most pronounced in fresh produce, dairy, and ready-to-eat segments, particularly in import-dependent regions such as asia-pacific and europe. Delivery platforms have responded by optimizing local sourcing, renegotiating supplier contracts, and investing in regional fulfillment centers. In some cases, tariffs have positively encouraged domestic sourcing and private-label development, strengthening local supply chains and reducing long-term dependency on imports.
The online grocery market research report is one of a series of new reports from The Business Research Company that provides online grocery market statistics, including online grocery industry global market size, regional shares, competitors with a online grocery market share, detailed online grocery market segments, market trends and opportunities, and any further data you may need to thrive in the online grocery industry. This online grocery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The online grocery market size has grown exponentially in recent years. It will grow from $655.51 billion in 2025 to $794.86 billion in 2026 at a compound annual growth rate (CAGR) of 21.3%. The growth in the historic period can be attributed to rising internet penetration, growth of smartphone usage, increasing urban population, expansion of digital payment systems, changing consumer lifestyles.
The online grocery market size is expected to see exponential growth in the next few years. It will grow to $1721.3 billion in 2030 at a compound annual growth rate (CAGR) of 21.3%. The growth in the forecast period can be attributed to AI-driven demand forecasting, expansion of dark stores, growth of quick commerce models, increasing focus on sustainable sourcing, rising penetration in tier 2 and tier 3 cities. Major trends in the forecast period include personalized grocery recommendations, sustainable packaging adoption, expansion of instant delivery services, growth of private label online brands, increased demand for contactless shopping.
A growing inclination toward digital shopping driven by convenience and safety is anticipated to support the expansion of the online grocery market in the coming years. Digital shopping, also referred to as online shopping or e-commerce, involves purchasing products or services through an internet connection using a website or mobile application. In the context of grocery retail, digital shopping offers convenience and saves time by enabling consumers to browse, select, and buy products from their homes, along with the added advantage of home delivery. For example, in December 2025, according to the US Census Bureau, a US-based government agency, e-commerce sales in the third quarter of 2025, adjusted for seasonal variation but not for price changes, totaled US$310.3 billion, representing a 5.1% increase compared to the third quarter of 2024 and accounting for 16.4% of total retail sales. As a result, the increasing preference for digital shopping due to convenience and safety is fueling growth in the online grocery market.
Leading companies in the online grocery market are embracing subscription models and membership programs, including B2B membership platforms, to better cater to the needs of their existing consumers. B2B membership platforms in the online grocery sector serve as digital hubs that connect businesses within the supply chain, facilitating transactions and collaboration among suppliers, distributors, and retailers. For instance, in October 2023, Bundl Technologies Private Limited (Swiggy), an India-based company operating an online food ordering platform, launched Swiggy One Lite. This new and more economical variant of Swiggy One, the membership club, offers benefits for meals, groceries, and pick-up and delivery services. Swiggy One Lite provides perks such as free delivery, special deals, and discounts, with a starting price of Rs 99 for three months. The Lite version is available as a B2B membership, bundled with offerings from major brand partners in the telecom and banking sectors.
In March 2025, Talabat Holdings Ltd., a UAE-based technology and online delivery company, acquired InstaShop for approximately $32 million. Through this acquisition, Talabat seeks to enhance and scale its grocery and retail services across the Middle East and North Africa (MENA) region by broadening its merchant partner ecosystem, facilitating cross-platform listings, and improving operational efficiency through integrated logistics and optimized fleet utilization. InstaShop Ltd. is a UAE-based e-commerce company focused on on-demand grocery and retail delivery, connecting consumers with local supermarkets, pharmacies, and other retailers via a digital marketplace platform.
Major companies operating in the online grocery market are Amazon.com Inc., The Kroger Company, Alibaba Group, Target Corporation, Koninklijke Ahold Delhaize N.V., Edeka group, Albertsons Companies, Inc., Getir, Uber Eats, Delivery Hero, Doordash, ALDI Inc., Flipkart Supermart, Just Eat, Jio Mart, Auchan SA, ASDA Groceries, Instacart, Safeway Inc., FreshDirect LLC.
Asia-Pacific was the largest region in the online grocery market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the online grocery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the online grocery market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
The online grocery market consists of revenues earned by entities by providing services such as in-store pickup, home delivery, flexible shopping, and 24/7 ordering. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Online Grocery Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses online grocery market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for online grocery ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The online grocery market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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