ONLINE GROCERY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Online Grocery Market Size and Forecast – 2025-2032

The Global Online Grocery Market is estimated to be valued at USD 399.74 billion in 2025 and is expected to reach USD 1,012.61 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.2% from 2025 to 2032.

Key Takeaways of the Global Online Grocery Market:

• The staples and cooking essentials segment is expected to lead with a market share of 28.9% in 2025.
• The subscription segment is projected to lead the market, holding a share of 58.3% in 2025.
• Asia Pacific is expected to dominate the market with a share of 58.3% in 2025, while North America is projected to be the fastest-growing region, holding a share of 21.8% in 2025.

Market Overview:

The online grocery market witnesses a significant shift in consumer behavior, accelerated by the global pandemic. Factors contributing to this trend include the rising popularity of mobile shopping apps, improved last-mile delivery services, and the integration of advanced technologies, such as AI and machine learning, for personalized shopping experiences. Additionally, the expansion of click-and-collect services and the growing emphasis on sustainability in packaging and delivery methods are shaping the future of the market.

Segmental Insights

To learn more about this report, Request sample copy

Product Type Insights – Staples and Cooking Essentials Lead Owing to Convenience and Essential Nature

The staples and cooking essentials segment is expected to emerge as the dominant force in the global online grocery market, holding a share of 28.9% in 2025, driven by several key factors that cater to the evolving needs and preferences of consumers worldwide. This category encompasses a wide range of products including rice, flour, pasta, oils, spices, and other pantry staples that form the foundation of most household kitchens.

One of the primary reasons for the segment's strong performance is the essential nature of these products. Staples and cooking essentials are considered necessities in most households, regardless of cultural or dietary preferences. This consistent demand ensures a steady stream of purchases, contributing to the segment's market share.

The convenience factor plays a crucial role in driving the growth of staples and cooking essentials in the market. These items are typically non-perishable and have longer shelf lives, making them ideal for bulk purchases and stockpiling. Consumers appreciate the ability to order these products in larger quantities, reducing the frequency of shopping trips and ensuring they always have essential ingredients on hand.

Purchase Type Insights – Subscription Segment Leads Due to Convenience and Cost Savings

The subscription segment is expected to emerge as the leading purchase type in the global online grocery market, holding a share of 58.3% in 2025, driven by a combination of convenience, cost savings, and personalized shopping experiences. This segment's dominance reflects a shift in consumer behavior towards more predictable, automated, and tailored grocery shopping solutions.

One of the primary factors contributing to the success of subscription-based online grocery shopping is the unparalleled convenience it offers. Subscribers can set up recurring deliveries for their frequently purchased items, eliminating the need to remember and manually reorder essential products. This "set it and forget it" approach saves time and mental energy, appealing to busy consumers who value efficiency in their daily routines.

Cost savings play a significant role in driving subscription adoption. Many online grocery platforms offer discounts, free shipping, or other incentives for subscribers, making it an attractive option for budget-conscious shoppers. The predictable nature of subscription orders also allows retailers to optimize their inventory and logistics, potentially passing on these cost savings to consumers in the form of lower prices or additional benefits.

Regional Insights

To learn more about this report, Request sample copy

Asia Pacific Online Grocery Market Trends

Asia Pacific is expected to dominate the global online grocery market, holding an estimated market share of 58.3% in 2025. This rapid expansion can be attributed to several factors unique to the region. Firstly, the increasing penetration of smartphones and internet connectivity, particularly in emerging economies like India and Indonesia, has opened up new avenues for online grocery shopping. The region's large and growing middle-class population, coupled with rising disposable incomes, has led to increased demand for convenient shopping options.

North America Online Grocery Market Trends

The North America region is projected to be the fastest-growing market, with an estimated market share of 21.8% in 2025. The region boasts a well-developed digital infrastructure, high internet penetration rates, and widespread smartphone usage, which have significantly contributed to the adoption of online grocery shopping. The presence of major e-commerce giants and established grocery chains with robust online platforms has further fueled market growth. Companies like Amazon, Walmart, and Kroger have invested heavily in expanding their online grocery services, offering features such as same-day delivery and click-and-collect options.

Online Grocery Market Outlook for Key Countries

U.S. Online Grocery Market Trends

The U.S. online grocery market continues to evolve rapidly, driven by technological advancements and changing consumer preferences. Major players like Amazon Fresh, Walmart Grocery, and Instacart dominate the market, constantly innovating to enhance user experience and delivery efficiency. The integration of artificial intelligence and machine learning in inventory management and personalized recommendations is becoming increasingly prevalent.

China Online Grocery Market Trends

China online grocery market is characterized by intense competition and rapid technological innovation. Giants like Alibaba's Freshippo (Hema) and JD.com's 7Fresh are leading the market with their innovative online-to-offline (O2O) models, blending digital and physical retail experiences. The concept of community group buying has gained significant traction, especially in lower-tier cities, with platforms like Xingsheng Youxuan and Meituan Maicai driving growth in this segment.

India Online Grocery Market Trends

India online grocery market is experiencing rapid growth, driven by increasing smartphone penetration and digital literacy. Key players like BigBasket, Grofers (now Blinkit), and JioMart are expanding their reach beyond metro cities into tier-2 and tier-3 cities. The market is witnessing a surge in quick commerce models, with companies like Swiggy Instamart and Dunzo offering ultra-fast deliveries. Traditional retailers and fast-moving consumer goods (FMCG) companies are also entering the online space through partnerships and their own platforms. The market is characterized by a focus on regional and local products, catering to diverse culinary preferences across the country.

South Korea Online Grocery Market Trends

South Korea online grocery market is witnessing strong growth, driven by a highly digital-savvy population and widespread e-commerce adoption. Leading players, such as Coupang, Market Kurly, and SSG.com, are expanding their operations, offering same-day and next-day delivery services to meet consumer expectations for speed and convenience. The market is also experiencing a rise in quick commerce models, with platforms like Coupang Fresh and Kurly’s dawn delivery service gaining popularity. Additionally, major convenience store chains and supermarkets are strengthening their online presence through dedicated apps and partnerships.

Market Players, Key Devlopment, and Competitive Intelligence

Get actionable strategies to beat competition: Request sample copy

Key Developments:

• In July 2023, Woolworths Group Limited, a multinational retail company, launched the MILKRUN application in New Zealand, allowing consumers to order items in few minutes
• In February 2023, Amazon, an e-commerce giant, invested in FreshToHome, an online grocery startup

Top Strategies Followed by Global Online Grocery Market Players

• Established Players: Leading companies focus on AI-driven logistics, strategic acquisitions, and fast delivery models to strengthen market dominance. Coupang, Market Kurly, and SSG.com invest heavily in AI-powered demand forecasting, automated warehouses, and efficient cold chain management to enhance customer experience.
  • For example, Coupang has expanded its Rocket Fresh service, ensuring next-day delivery for fresh groceries using advanced supply chain technology. Meanwhile, SSG.com has partnered with Emart to integrate its online and offline grocery operations, improving order fulfillment and delivery efficiency.
• Mid-level Players: Mid-sized companies emphasize regional expansion, partnerships with traditional retailers, and subscription-based models to increase market share. Companies like Oasis Market and GS Fresh focus on organic and premium grocery offerings, catering to health-conscious consumers.
  • For instance, Oasis Market has expanded its overnight delivery service, targeting customers who prefer locally sourced and organic products. Similarly, GS Fresh has collaborated with local farms to offer direct-to-consumer fresh produce through its digital platforms.
• Small-scale Players: Smaller companies differentiate by targeting niche markets, hyperlocal grocery delivery, and specialized food categories such as traditional ingredients and halal-certified products.
  • For example, Kurly Market has launched a subscription-based grocery service for premium imported foods catering to the growing demand for global ingredients. Meanwhile, HelloNature has focused on eco-friendly packaging and sustainable farming partnerships, attracting environmentally conscious consumers.

Emerging Startups – Online Grocery Industry Ecosystem

• Quick Commerce Innovation: Startups are focusing on ultra-fast delivery models, leveraging AI-driven logistics and dark store networks to fulfill orders within 10 to 30 minutes.
  • For example, Baedal Minjok’s B-Mart has expanded its instant delivery service, using AI-powered demand prediction to optimize inventory across urban warehouses. Similarly, Kurly Now, a division of Market Kurly, guarantees same-day fresh grocery delivery by utilizing advanced logistics algorithms.
• Sustainable and Ethical Grocery Models: Many startups are addressing sustainability concerns by offering zero-waste packaging, organic produce, and locally sourced groceries.
  • For example, HelloNature has introduced plastic-free packaging and a direct-from-farm delivery model, reducing waste while supporting local farmers. Meanwhile, Danggeun Market (Karrot) has launched a community-based grocery resale platform, allowing consumers to buy and sell surplus food, reducing food waste.
• Subscription-Based and Membership Models: Some startups are targeting loyalty-driven customers through subscription services for curated grocery boxes and premium imported foods.
  • For example, The Green Table offers a weekly subscription box for organic meal kits, tailored to health-conscious consumers. Likewise, Farm 8 provides a farm-to-table grocery subscription featuring freshly harvested greens grown using vertical farming technology.
• AI-Driven Personalization and Smart Shopping Assistants: Startups are enhancing customer experience through AI-powered grocery recommendations and virtual shopping assistants.
  • For example, Fresh Code has introduced an AI-powered meal planner, suggesting grocery items based on a customer’s dietary preferences and past purchases. Additionally, Balaan Fresh uses AI to predict shopping habits and offer personalized grocery discounts, increasing user engagement.

Market Report Scope

Market Dynamics

Discover market dynamics shaping the industry: Request sample copy

Global Online Grocery Market Driver – Technological Advancements

The global online grocery market is experiencing significant growth, propelled by rapid technological advancements that are revolutionizing the way consumers shop for groceries. The integration of artificial intelligence and machine learning algorithms has enhanced personalized shopping experiences, offering tailored product recommendations and streamlining the ordering process. Mobile applications have become increasingly sophisticated, featuring user-friendly interfaces, real-time inventory updates, and seamless payment options.

Additionally, the implementation of advanced logistics systems, including automated warehouses and last-mile delivery innovations such as drones and autonomous vehicles, has greatly improved order fulfillment efficiency and reduced delivery times. Furthermore, the adoption of Blockchain technology has enhanced supply chain transparency, allowing consumers to track the origin and journey of their groceries. These technological innovations have not only improved convenience for shoppers but have also enabled online grocery platforms to optimize their operations, ultimately driving the market's expansion and reshaping the retail landscape.

Global Online Grocery Market Challenge – High Competition and Lower Profit Margins

The market faces significant challenges due to intense competition and lower profit margins. As more players enter the market, including traditional brick-and-mortar retailers expanding their online presence and pure-play e-commerce giants, the competition has become increasingly fierce. This saturation has led to price wars and aggressive promotional strategies, putting pressure on profit margins. The cost-intensive nature of online grocery operations, including last-mile delivery, inventory management, and technology infrastructure, further erodes profitability.

Additionally, the perishable nature of many grocery items requires efficient handling and quick turnover, adding complexity and potential for losses. Smaller players struggle to achieve economies of scale, while larger companies invest heavily in logistics and technology to gain a competitive edge. The need for continuous innovation and improvement in customer experience also drives up costs. As a result, many online grocery retailers find themselves in a challenging position, balancing the need to attract and retain customers through competitive pricing and services while striving to maintain sustainable profit margins in an industry known for its traditionally thin margins.

Global Online Grocery Market Opportunity – Subscription Models and Membership Programs

Subscription models and membership programs present a significant opportunity for growth and customer retention in the global online grocery market. By offering subscription-based services, online grocery retailers can create a steady stream of recurring revenue while fostering customer loyalty. These models can take various forms, such as weekly or monthly delivery of essential items, curated meal kits, or premium membership programs offering benefits like free delivery, exclusive discounts, and early access to new products. Subscription services not only provide convenience for customers but also allow retailers to better predict demand and optimize inventory management.

Membership programs, similar to Amazon Prime, can incentivize customers to consolidate their grocery shopping with a single provider, increasing customer lifetime value. These models also generate valuable data on customer preferences and shopping habits, enabling retailers to personalize offerings and improve targeted marketing efforts. Furthermore, subscription and membership programs can help online grocery retailers differentiate themselves in a crowded market, creating a unique value proposition that goes beyond price competition. As consumers increasingly prioritize convenience and value, these models have the potential to drive long-term growth and profitability in the online grocery sector.

Analyst Opinion (Expert Opinion)

• The global online grocery market is poised for substantial growth, driven by technological advancements and increasing internet penetration. The convenience of online shopping, coupled with the integration of AI and robotics, is expected to enhance operational efficiency and customer experience.​
• However, challenges such as high competition leading to thinner profit margins and concerns over product quality and infrastructure limitations could hinder market expansion.
• The Asia Pacific region is anticipated to continue its dominance in the market, attributed to rapid digital adoption and a large consumer base.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2020 - 2032)
• • Staples and Cooking Essentials
  • Fresh Produce
  • Dairy Products
  • Snacks and Beverages
  • Meat and Seafood
  • Others
• Purchase Type Insights (Revenue, USD Bn, 2020 - 2032)
  • Subscription
  • One-Time
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
    • Europe
  • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Amazon.com, Inc.​
  • Walmart Inc.​
  • The Kroger Co.​
  • Albertsons Companies, Inc.​
  • Tesco PLC​
  • Woolworths Group Limited​
  • J Sainsbury plc.​
  • Target Corporation​
  • Rakuten Group, Inc.​
  • Reliance Retail Limited​
  • Aldi​
  • Coles Group Limited​
  • Costco Wholesale Corporation​
  • Carrefour S.A.​
  • Lidl Stiftung & Co. KG