Market Size of North America Online Grocery Delivery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Online Grocery Delivery Market Analysis
The North American online grocery delivery market is expected to record a CAGR of 10.0% over the forecast period. The growing population, technological advancements, ongoing urbanization, and a paradigm shift in consumer purchasing behaviors are pushing the demand for grocery shopping via online applications and websites, driving growth opportunities in the market.
- Due to health benefits, functional foods and beverages are rapidly growing and driving the North American online grocery delivery market. For instance, Instacart expanded its footprint across Quebec, increasing same-day delivery availability to 90% of Canadian households.
- Key players in the online grocery delivery market are implementing various strategies, such as partnerships, mergers and acquisitions, strategic alliances, product/service launches, and geographical expansion, to enhance their presence in the market. For instance, Instacart, North America's premier online grocery marketplace, acquired Caper AI, a leading AI-powered shopping cart and checkout technology platform. This acquisition expands Instacart's comprehensive retailer enablement platform, which currently spans the Instacart marketplace. These robust enterprise services power the e-commerce solutions for many top grocers, fulfillment technology to support delivery and pickup capabilities, last-mile delivery, and much more. With this purchase, Instacart intends to assist merchants in unifying their clients' in-store and online purchasing experiences, boosting their companies regardless of how customers shop.
- With the help of advanced technology, the home delivery option is expected to bring new growth opportunities for the online grocery delivery market over the next five years. For instance, Amazon.com Inc. intends to impose fees on online buyers for grocery orders less than USD 150, highlighting the challenging economics of delivering food to customers' doorsteps.
- Consumer shopping habits were altered as a result of the COVID-19 pandemic. Consumers have expanded their use of online grocery delivery systems, offering various market growth prospects over the next five years. For instance, Uber introduced online groceries, first making the service available in 19 locations across Latin America and Canada. Customers in Toronto and Montreal may use the Uber app to order from store partners such as Walmart, Metro, Costco, and Rexall.
North America Online Grocery Delivery Industry Segmentation
Online grocery shopping is a way to buy food and other necessities using a web-based shopping service. People can use online shopping methods to purchase these items online.
North America's online grocery delivery market is segmented by product type (retail delivery, quick commerce, meal kit delivery) and country (United States, Canada).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Product Type | |
| Retail Delivery | |
| Quick Commerce | |
| Meal Kit Delivery |
| By Country | |
| United States | |
| Canda |
North America Online Grocery Delivery Market Size Summary
The North American online grocery delivery market is experiencing significant growth, driven by factors such as population increase, technological advancements, and changing consumer purchasing behaviors. The market is characterized by the rapid expansion of functional foods and beverages, which are gaining popularity due to their health benefits. Key players like Instacart and Amazon Fresh are actively enhancing their market presence through strategic partnerships, acquisitions, and geographical expansion. These companies are leveraging advanced technologies to improve delivery services, such as same-day and rapid delivery options, which are becoming increasingly popular among consumers. The COVID-19 pandemic has further accelerated the adoption of online grocery delivery services, creating new growth opportunities as consumer habits continue to evolve.
The market is also witnessing substantial investments from both government and private sectors, aimed at enhancing the online and in-store shopping experience. Companies like Walmart Canada are investing heavily in infrastructure to support this growth. The introduction of subscription-based services and the expansion of delivery networks are contributing to the market's competitiveness. As the market becomes more fragmented with new entrants, service providers are focusing on product innovation and strategic collaborations to maintain their competitive edge. The construction of new grocery stores and the expansion of delivery services are expected to provide further opportunities for growth in the coming years.
North America Online Grocery Delivery Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Retail Delivery
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2.1.2 Quick Commerce
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2.1.3 Meal Kit Delivery
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2.2 By Country
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2.2.1 United States
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2.2.2 Canda
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North America Online Grocery Delivery Market Size FAQs
What is the current North America Online Grocery Delivery Market size?
The North America Online Grocery Delivery Market is projected to register a CAGR of 10% during the forecast period (2024-2029)
Who are the key players in North America Online Grocery Delivery Market?
Albertsons Companies Inc., SPAR International, Walmart Inc., Instacart and Amazon Fresh are the major companies operating in the North America Online Grocery Delivery Market.
