DARK STORE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Dark Store Market Size and Trends

The Global Dark Store Market is estimated to be valued at USD 21.78 Bn in 2024 and is expected to reach USD 212.03 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 38.4% from 2024 to 2031.

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The dark store market is expected grow significantly over the forecast period driven by the rising adoption of omnichannel retailing, growing demand for quick commerce, and expansion of grocery & food delivery startups. Online grocery delivery and fulfilment is gaining prominence as consumer preference shifts towards online shopping for daily essentials. Also, the increasing penetration of smartphones and internet along with growing preference of consumers towards quick & hassle-free shopping experience will boost the market expansion. Key players operating in this space are focusing on strengthening their supply chain and delivery infrastructure in order to ensure fast delivery of grocery items. This in turn is positively impacting the growth of dark stores globally.

Increasing consumer preference for online grocery shopping

The global pandemic has significantly changed consumer shopping behavior across the world. With lockdowns and restrictions on movement, more people opted to purchase their daily necessities from the safety and convenience of their homes through online platforms. This new normal has led to growing acceptance of online grocery shopping amongst consumers who were previously hesitant to adopt this trend.

For the elderly, who were particularly vulnerable, online grocery shopping emerged as a safe alternative to reduce exposure to risks. Even younger consumers, who initially tried online grocery shopping out of necessity, have now recognized its benefits, such as saving time on traveling to stores and waiting in lines. They can browse and add items to their cart from home, avoiding the pressure of stock shortages. Enhanced services like scheduled delivery slots, quick deliveries, and substitution options have further improved the customer experience.

As consumers adapt to hybrid remote work models, their reliance on online grocery shopping is likely to continue for weekday meals and regular household supplies. Working professionals find online services convenient for shopping during tight schedules without disrupting their workflow. Many online grocery platforms also offer subscription models for frequently purchased items or recipe kits, which appeal to busy households. Additionally, the younger generation, now accustomed to the ease of online shopping, is likely to maintain this trend even after restrictions are fully lifted.

Online platforms allow young consumers to customize weekly baskets as per their varying preferences without hassle. The digital shopping experience with easy payment options has made online grocery a preferred first choice for a significant section of urban population. Even in tier 2 and 3 cities, online grocery platforms are enhancing their product assortments and delivery capabilities and creating awareness to tap the younger internet savvy residents shifting to their services.

While in-store shopping will still continue, online grocery has surely found a strong and loyal customer base that is here to stay. Consumers have recognized the long term advantages it brings compared to traditional brick and mortar trips. The sector is forecast to witness steady rise in years to come as online platforms invest further in technology, supply chain and customer experience to fulfil the evolving preferences of digital-first shoppers.

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Growth of E-commerce Platforms and Third-Party Delivery Services

The scaling of e-commerce sector has greatly supported the emergence of online grocery model globally. Large marketplace platforms initially focused on consumer electronics, fashion, and general merchandise have now diversified into offering consumers an assortment of food and household supplies via their websites and mobile apps. Their widespread customer base and established delivery networks have helped online grocery category to reach mass market penetration rapidly.

While e-commerce platforms attracted shoppers to the concept, it is third-party logistics and hyperlocal delivery executives that have enabled the first as well as last-mile connectivity for online grocery. Major food and grocery orders rely on the extensive fleet and operational capabilities of these specialized service providers. Be it intra-city or inter-city, their trained riders ensure timely pick up of products from merchant's warehouses or cloud kitchens and reach it at customer's doorstep safely.

Third-party networks have gained proficiency over years in managing high order volumes during peak demand, tackling issues such as out of stock items, providing temperature-controlled transportation for perishables and timely notifications of order status to customers.