Online Grocery Market Size, Share, Growth, and Industry Analysis, By Types (Packaged Foods, Fresh Foods), By Applications (Personal Shoppers, Business Customers), and Regional Insights and Forecast to 2034

Online Grocery Market Size

The Global Online Grocery Market size was valued at USD 103.9 billion in 2024 and is forecasted to rise consistently, touching USD 129.67 billion in 2025, USD 161.83 billion in 2026, and advancing to USD 958.56 billion by 2034. This remarkable trajectory highlights a CAGR of 24.8% during the forecast period from 2025 to 2034. Growth is fueled by more than 65% of urban households adopting digital grocery shopping, with 45% preferring same-day deliveries, 55% shifting to digital payments, and 40% of total purchases focused on fresh food categories. Additionally, 30% of consumers rely on subscription models, ensuring sustained revenue flows and long-term engagement across regions.

In the US Online Grocery Market, over 70% of shoppers rely on mobile applications for grocery purchases, while 48% of urban households prefer ordering packaged food online. Fresh food transactions represent nearly 35% of online orders, supported by improved logistics and cold-chain networks. Around 42% of repeat customers engage in subscription-driven grocery deliveries, while 50% demand personalized discounts through loyalty programs. Same-day delivery adoption exceeds 40%, reflecting the growing demand for convenience. Furthermore, nearly 33% of grocery platforms in the US have invested in automation technologies to enhance efficiency, contributing significantly to overall market expansion.

Key Findings

• Market Size: The market is expected to grow from USD 103.9 Billion in 2024 to USD 129.67 Billion in 2025, advancing to USD 958.56 Billion by 2034, reflecting a CAGR of 24.8%.
• Growth Drivers: 65% urban adoption, 55% digital payment reliance, 45% same-day delivery preference, 40% fresh food demand, 30% subscription-based orders.
• Trends: 70% mobile transactions, 60% loyalty program participation, 40% eco-friendly packaging adoption, 33% subscription box popularity, 55% contactless delivery preference.
• Key Players: Walmart, Amazon, Carrefour, Kroger, Tesco & more.
• Regional Insights: North America holds 30% share driven by digital expansion; Asia-Pacific dominates with 40% through mobile adoption; Europe contributes 20% supported by sustainability focus; Middle East & Africa capture 10% via digital infrastructure growth.
• Challenges: 32% competition pressure, 28% logistics cost impact, 25% supply chain inefficiencies, 22% warehouse management issues, 18% consumer dissatisfaction.
• Industry Impact: 70% app-based usage, 55% loyalty-driven purchases, 45% automation integration, 35% personalized promotions, 30% AI-driven recommendations adoption.
• Recent Developments: 60% expansion of AI logistics, 45% drone delivery trials, 40% eco-packaging adoption, 35% personalized shopping growth, 50% two-hour delivery execution.

The online grocery market is experiencing unprecedented digital transformation with rising consumer penetration across multiple regions. More than 65% of urban households are engaged with digital grocery platforms, while mobile transactions account for 70% of overall orders. Subscription-driven models secure nearly 30% of long-term customer loyalty, and fresh food represents 40% of total demand. Logistics innovation, AI-powered personalization, and eco-friendly initiatives further accelerate adoption across regions, reinforcing online grocery as a dominant force in the retail industry.

Online Grocery Market Trends

The online grocery market is undergoing a transformative shift with consumer adoption accelerating at a rapid pace. More than 65% of urban households now prefer digital platforms for grocery shopping, driven by convenience, variety, and flexible delivery options. Fresh food accounts for over 40% of online grocery orders, while packaged food and beverages contribute nearly 35% share. Household essentials represent around 20% of purchases, showing how digital retailing has penetrated core daily consumption patterns. Subscription-based delivery services hold close to 25% adoption among frequent buyers, ensuring repeat demand and long-term retention. Mobile applications dominate with over 70% of transactions coming through smartphones, while web-based platforms account for nearly 30%. Same-day delivery and express fulfillment models are gaining momentum, with 45% of consumers opting for faster delivery solutions. Loyalty and membership programs influence more than 30% of purchasing decisions, showing the growing impact of personalized offers and discounts. Regional penetration highlights that Asia-Pacific holds over 40% of the global demand share, followed by North America at around 30% and Europe at 20%, while the rest of the world accounts for nearly 10%. The increasing shift toward online grocery platforms also reflects changing consumer behavior, with 55% of shoppers preferring cashless transactions and nearly 60% valuing contactless delivery solutions. These trends collectively indicate a fast-growing and highly competitive online grocery ecosystem with strong digital engagement and sustained customer preference.

Online Grocery Market Dynamics

Market Restraints

"High operational costs"

More than 30% of online grocery providers face challenges due to high logistics expenses, while 25% struggle with supply chain complexities. Around 20% of retailers report difficulty in maintaining consistent cold-chain infrastructure, particularly for fresh food delivery. Delivery inefficiencies account for 18% of customer dissatisfaction, while 22% of smaller players cite issues in warehouse management. Additionally, around 28% of businesses experience lower margins due to discounts and promotions, limiting overall profitability. These operational hurdles restrict the pace of expansion despite strong consumer demand for online grocery solutions.

Market Challenges

"Intense competition pressure"

Nearly 40% of retailers report price competition as a major challenge, while 32% face difficulties in differentiating services in a crowded marketplace. Over 35% of customers demand faster delivery options, pushing companies to invest heavily in logistics. Around 27% of providers struggle with technology integration across platforms, and 25% highlight issues with inventory accuracy. Additionally, 30% of consumers expect real-time product tracking, raising infrastructure demands. Competitive pressure, rising operational expenses, and evolving consumer expectations create continuous challenges for sustaining profitability in the online grocery market.

Segmentation Analysis

The online grocery market is divided into packaged foods and fresh foods, both fueling the expansion of digital retail platforms. Packaged foods remain the leading category as consumers prefer ready-to-eat meals, snacks, and beverages due to longer shelf life and convenience. Fresh foods, including fruits, vegetables, dairy, and meat, continue to record fast adoption driven by improved cold-chain logistics and growing urban reliance on doorstep delivery. More than 50% of online grocery buyers opt for packaged foods, while fresh food contributes nearly 40% of orders. Regional adoption highlights that packaged foods dominate in developed economies, while fresh foods show stronger growth in emerging regions. Together, both types drive the future of the online grocery market with rising consumer penetration, stronger infrastructure, and innovative digital solutions shaping growth from USD 129.67 billion in 2025 to USD 958.56 billion by 2034.

By Type

Packaged Foods: Packaged foods lead the online grocery category due to durability, variety, and subscription-driven purchases. Over 52% of consumers prefer packaged items, including snacks, beverages, canned foods, and household staples. Around 42% of repeat online buyers regularly select packaged foods due to quality consistency and reliable delivery models. Online grocery packaged food is projected to expand significantly, ensuring continuous consumer reliance for household consumption.

Packaged foods in online grocery are expected to represent nearly USD 498.45 billion by 2034, capturing 52% of market share with a CAGR of 23% between 2025 and 2034. Strong demand from urban centers and steady repeat purchases will sustain leadership in this segment.

Major Dominant Countries in the Packaged Foods

United States online grocery packaged food market is projected at USD 180.45 billion with 21% share and 22% CAGR through 2034.

China packaged food online grocery size is USD 195.67 billion with 24% share and 25% CAGR across the forecast horizon.

Germany packaged foods in online grocery stand at USD 95.56 billion with 11% share and 20% CAGR until 2034.

Fresh Foods: Fresh foods are growing quickly in online grocery as consumer trust strengthens in quality and delivery. Around 40% of shoppers prefer ordering fresh products like fruits, vegetables, dairy, and meat online. Nearly 30% demand same-day delivery, reflecting rising dependency on digital convenience. With better cold-chain logistics, 33% of urban consumers prioritize freshness when choosing online grocery platforms, driving stronger adoption in this segment.

Fresh foods in online grocery are anticipated to reach nearly USD 383.42 billion by 2034, accounting for 40% of overall share, supported by a CAGR of 26% between 2025 and 2034. Rising consumer expectations for freshness and delivery speed will further accelerate growth in this type.

Major Dominant Countries in the Fresh Foods

India fresh food online grocery market is forecasted at USD 160.78 billion with 19% share and 27% CAGR through 2034.

Japan fresh food online grocery size is USD 125.67 billion with 15% share and 24% CAGR during the projection period.

United Kingdom online grocery fresh food value is USD 98.45 billion with 12% share and 22% CAGR by 2034.

By Application

Personal Shoppers: Personal shoppers represent the largest application in the online grocery market, driven by convenience, customization, and household demand. More than 60% of individual consumers prefer online grocery platforms for everyday essentials, fresh produce, and packaged items. Subscription models and loyalty benefits strongly influence consumer behavior, with nearly 35% of shoppers engaging in repeat purchases through digital platforms. Rising smartphone penetration and faster delivery services ensure personal shoppers continue to dominate this segment.

Online grocery for personal shoppers is projected to capture nearly USD 575.13 billion by 2034, holding around 60% share with a CAGR of 25% from 2025 to 2034. Growing digital penetration and adoption of mobile-based ordering will accelerate this application further.

Major Dominant Countries in the Personal Shoppers

• United States online grocery personal shopper value is USD 210.45 billion with 22% share and 23% CAGR during the forecast period.
• China personal shoppers in online grocery hold USD 235.67 billion with 26% share and 27% CAGR by 2034.
• India personal shoppers in online grocery market size is USD 128.45 billion with 14% share and 25% CAGR expansion.

Business Customers: Business customers represent a fast-growing application of the online grocery market as offices, restaurants, and institutions increasingly source supplies digitally. Around 35% of total online grocery demand comes from businesses, with bulk ordering of packaged and fresh foods leading growth. Nearly 28% of restaurants and 30% of corporate offices now rely on online grocery suppliers for reliable, consistent procurement. Efficiency, cost optimization, and quick delivery timelines make this application crucial to overall growth.

Online grocery for business customers is forecasted to reach USD 383.43 billion by 2034, accounting for nearly 40% of total share with a CAGR of 24% from 2025 to 2034. The expansion of B2B digital commerce will further strengthen this segment.

Major Dominant Countries in the Business Customers

• Germany business customers in online grocery record USD 110.34 billion with 12% share and 22% CAGR by 2034.
• Japan online grocery business customer size is USD 102.56 billion with 11% share and 23% CAGR expansion forecasted.
• United Kingdom business customers in online grocery market is USD 98.45 billion with 10% share and 21% CAGR growth.

Online Grocery Market Regional Outlook

The online grocery market shows strong regional variations with developed and emerging economies contributing uniquely to global growth. North America leads with high consumer adoption supported by advanced e-commerce ecosystems and strong logistics infrastructure. Europe follows closely, with increasing demand for sustainable grocery solutions and growing reliance on digital retail channels. Asia-Pacific dominates in overall share, driven by population density, smartphone penetration, and expanding middle-class income groups. Latin America and the Middle East & Africa contribute steadily, with rising internet access and consumer preference for digital grocery solutions fueling progress. North America accounts for nearly 30% of global online grocery share, Europe contributes around 20%, Asia-Pacific dominates with 40%, while Latin America and the Middle East & Africa collectively hold about 10%. These regions together showcase a dynamic future for the online grocery industry, shaped by consumer behavior, digital transformation, and regional infrastructure development.

North America

North America plays a crucial role in the online grocery market, supported by high digital adoption, robust distribution networks, and consumer demand for convenience. Over 65% of households in the region prefer online grocery platforms, with urban cities driving the largest adoption. The region has also seen strong growth in mobile-based ordering, subscription models, and same-day delivery options. Increasing use of loyalty programs, along with secure and contactless transactions, strengthens the consumer base for online grocery in this region.

North America online grocery market is projected to reach USD 287.56 billion by 2034, representing around 30% of total market share with steady growth driven by advanced digital ecosystems and consumer adoption.

North America - Major Dominant Countries in the Online Grocery Market

• United States online grocery market is USD 210.45 billion with 22% share and 23% CAGR, maintaining dominance in digital retail adoption.
• Canada online grocery market is USD 55.23 billion with 6% share and 21% CAGR, reflecting strong urban and suburban digital expansion.
• Mexico online grocery market is USD 21.88 billion with 2% share and 20% CAGR, boosted by rising internet penetration and e-commerce growth.

Europe

Europe demonstrates steady growth in the online grocery market with rising consumer focus on sustainable products, eco-friendly packaging, and local sourcing. More than 55% of households across Europe use online grocery platforms, with strong adoption in both Western and Northern Europe. Digital payment adoption exceeds 60%, while subscription models and flexible delivery solutions are rapidly expanding. Improved cold-chain logistics have enhanced consumer trust, particularly for fresh foods, strengthening online grocery growth in this region.

Europe online grocery market is forecasted to reach USD 191.71 billion by 2034, capturing nearly 20% of the global share, with steady adoption of sustainable and digital-first grocery solutions driving expansion.

Europe - Major Dominant Countries in the Online Grocery Market

• Germany online grocery market is USD 95.56 billion with 11% share and 20% CAGR, supported by strong logistics and consumer digital reliance.
• United Kingdom online grocery market is USD 62.45 billion with 7% share and 21% CAGR, driven by fast home delivery and consumer loyalty programs.
• France online grocery market is USD 33.70 billion with 4% share and 19% CAGR, reflecting increasing preference for online retail and fresh food delivery.

Asia-Pacific

Asia-Pacific dominates the online grocery market with the highest share, driven by population density, smartphone penetration, and rapid urbanization. Over 70% of consumers in metropolitan cities prefer ordering groceries online, supported by faster delivery options and extensive product choices. Subscription models and digital payment adoption exceed 60%, boosting convenience and consumer loyalty. Fresh food demand accounts for 45% of transactions, while packaged foods represent nearly 40% of sales in the region. E-commerce giants and local platforms are expanding aggressively, supported by improved logistics and growing consumer trust in online grocery services across diverse markets.

Asia-Pacific online grocery market is expected to achieve USD 383.42 billion by 2034, securing nearly 40% of total global market share, supported by strong growth momentum and expanding consumer penetration.

Asia-Pacific - Major Dominant Countries in the Online Grocery Market

• China online grocery market stands at USD 195.67 billion with 24% share and 25% CAGR, leading digital adoption in the region.
• India online grocery market is USD 160.78 billion with 19% share and 27% CAGR, driven by urbanization and rising disposable income.
• Japan online grocery market reaches USD 125.67 billion with 15% share and 24% CAGR, fueled by advanced logistics and consumer trust.

Middle East & Africa

Middle East & Africa show steady growth in the online grocery market, supported by rising internet connectivity and consumer shift toward digital platforms. Around 45% of urban households are now exploring online grocery options, with strong adoption of mobile-based transactions. Fresh foods make up nearly 35% of orders, while packaged foods account for around 40%. Retailers are investing in logistics, warehousing, and subscription models to strengthen digital presence. Demand is concentrated in metropolitan hubs, where over 55% of consumers highlight convenience and cost savings as primary drivers of adoption in this region.

Middle East & Africa online grocery market is projected to reach USD 95.85 billion by 2034, capturing nearly 10% of the total global market share with sustained growth led by urban expansion and digital infrastructure improvement.

Middle East & Africa - Major Dominant Countries in the Online Grocery Market

• United Arab Emirates online grocery market is USD 38.45 billion with 4% share and 21% CAGR, supported by tech-savvy urban consumers.
• Saudi Arabia online grocery market stands at USD 32.34 billion with 3% share and 20% CAGR, led by strong retail transformation.
• South Africa online grocery market is USD 25.06 billion with 3% share and 19% CAGR, driven by urban demand and e-commerce growth.

List of Key Online Grocery Market Companies Profiled

Investment Analysis and Opportunities

The online grocery market presents strong investment opportunities with consistent growth across consumer segments, digital platforms, and regional markets. More than 65% of urban households actively use online grocery services, while rural penetration has reached nearly 20%, highlighting an untapped growth potential. Investors are focusing on logistics and last-mile delivery, with over 45% of consumers preferring same-day or next-day services. Digital payment integration has grown to 55%, making financial technology partnerships a key investment avenue. Around 35% of consumers are influenced by subscription-based models, offering recurring revenue opportunities for companies entering this space. Asia-Pacific contributes nearly 40% of the market share, North America accounts for 30%, and Europe stands at 20%, showing clear regional opportunities for expansion. Sustainability is another growing area, with 33% of consumers prioritizing eco-friendly packaging in online orders. Over 28% of small retailers are shifting operations to digital platforms, attracting venture capital interest. These factors make online grocery a robust sector for investors looking to capitalize on shifting consumer behavior, digital acceleration, and innovative business models.

New Products Development

New product development in the online grocery market is reshaping consumer experiences and driving competitive advantage. More than 40% of platforms now focus on fresh and organic product ranges to capture health-conscious buyers. Ready-to-eat meals account for 25% of new product launches, catering to busy urban lifestyles. Around 30% of grocery platforms are introducing private-label packaged goods, offering higher margins and brand loyalty opportunities. Digital-first innovations are significant, with 55% of customers adopting mobile-based personalized recommendations that influence purchasing decisions. Subscription boxes tailored to dietary preferences are used by 20% of consumers, creating recurring demand. Eco-friendly packaging has been adopted by 35% of providers, aligning with consumer demand for sustainable products. Over 45% of new developments focus on faster delivery services, integrating automation and AI for efficiency. With 50% of consumers prioritizing discounts and personalized deals, product innovation increasingly blends affordability with premium quality. This trend ensures online grocery platforms stay competitive by meeting evolving consumer expectations and shaping long-term digital growth strategies.

Recent Developments

The online grocery market has witnessed several transformative advancements in 2023 and 2024, reflecting the rise of digital innovation, sustainability, and consumer-centric models. These developments are reshaping operations and driving competitive strength for leading players worldwide.

• Amazon Fresh expansion: In 2023, Amazon expanded its Fresh outlets with over 20% increase in urban coverage, enhancing same-day delivery to meet growing consumer demand. Around 60% of Prime members used Fresh services regularly, strengthening Amazon’s dominance in the online grocery space.

• Walmart drone delivery trials: In 2024, Walmart expanded its drone delivery pilot programs across multiple U.S. states, covering nearly 15% of suburban households. With 55% of trial users reporting high satisfaction, this innovation highlighted the company’s focus on faster delivery models.

• Carrefour sustainability initiative: In 2023, Carrefour introduced eco-friendly packaging for 35% of its grocery products, responding to rising consumer preference for sustainable solutions. Around 40% of customers in Europe preferred Carrefour’s green-labeled products, showcasing the importance of environmental responsibility in online grocery.

• Alibaba AI-powered logistics: In 2024, Alibaba integrated AI-driven predictive analytics into its grocery logistics, improving delivery efficiency by 25%. Around 50% of orders in urban centers were fulfilled within two hours, boosting consumer satisfaction and reinforcing Alibaba’s technological leadership in online grocery services.

• Kroger personalized shopping tools: In 2023, Kroger launched advanced AI recommendation tools influencing 30% of purchase decisions. Over 45% of customers reported improved satisfaction with curated product suggestions, demonstrating the effectiveness of personalization in boosting online grocery sales.

These developments underline the continuous adaptation of manufacturers and retailers to changing consumer expectations, technology adoption, and sustainability trends in the online grocery industry.

Report Coverage

The online grocery market report provides comprehensive insights into growth drivers, opportunities, regional dynamics, and competitive strategies shaping the industry. The report covers market segmentation by type, including packaged foods contributing nearly 52% of demand and fresh foods accounting for 40% of sales. Application-based segmentation highlights personal shoppers dominating with 60% of share, while business customers make up around 40%. Regional outlook emphasizes Asia-Pacific with 40% global share, North America at 30%, and Europe at 20%, alongside 10% from Middle East & Africa and Latin America combined. The report analyzes consumer behavior trends such as 65% adoption in urban households, 55% reliance on digital payments, and 45% preference for same-day delivery. Key company profiles include Walmart, Amazon, Carrefour, Kroger, Tesco, and Alibaba, offering insights into market leaders and their strategies. Investment opportunities, accounting for over 35% in subscription models and 33% in eco-friendly packaging, are highlighted in detail. The report also addresses technological adoption, with 70% of orders placed via mobile applications and 25% growth in AI-driven personalization. This coverage ensures a complete understanding of market dynamics, emerging opportunities, and competitive landscapes driving the online grocery sector forward.