| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 0.67 Trillion |
| Market Size (2030) | USD 2.04 Trillion |
| CAGR (2025 - 2030) | 24.81 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Online Grocery Delivery Market Analysis
The Online Grocery Delivery Market size in terms of gross merchandise value is expected to grow from USD 0.67 trillion in 2025 to USD 2.04 trillion by 2030, at a CAGR of 24.81% during the forecast period (2025-2030).
- In recent years, the online grocery market has experienced a significant transformation, fueled by changing consumer behaviors, technological innovations, and heightened competition in the retail sector. Technologies like mobile applications, voice-activated shopping, and artificial intelligence are refining the user experience, rendering it more intuitive and seamless.
- In developing regions like the Middle East and Latin America, the demand for online grocery delivery is surging. This growth is attributed to increasing internet penetration, widespread smartphone access, and rising urbanization, all of which amplify the demand for convenient services.
- GSMA Intelligence reports that Latin America's mobile user base surpassed 450 million by the close of 2021, with projections reaching 485 million by 2025. This surge in mobile internet users is pivotal, as it broadens the audience for online grocery delivery services.
- In Europe, an Otter survey, a delivery management and optimization platform, conducted between January and June 2023, revealed insights from the UK. The survey highlighted a preference for weekend orders, with Sunday leading at 16.5% of all orders, closely followed by Saturday (16.4%) and Friday (16.3%). While early week orders remained steady, Thursday witnessed a slight uptick. Notably, the prime ordering window was in the evening, peaking between 7 to 8 p.m.
- Storage and delivery costs pose significant challenges for online grocery businesses. These rising expenses, year after year, increasingly strain investors. Moreover, ensuring the freshness of delivered items adds another layer of complexity.
- During the Covid pandemic, various pickup options emerged to address surging demands and challenges like delivery slot unavailability and panic buying. Options like flexible pickups, curbside pickups, and authorized drop-off centers became mainstream. Retailers learned to balance between home deliveries and pickups. In the current post-pandemic landscape, advanced predictive models have been developed, leveraging technology to forecast order numbers accurately.
Online Grocery Delivery Market Trends
Retail Delivery to Hold Significant Share
- The retail delivery segment leads the market, largely due to consistent online purchases of kitchen staples like flour, refined oil, and grains during lockdowns. Fearing potential food shortages due to supply chain disruptions, consumers began stocking up by ordering online.
- Furthermore, the rising online delivery of dairy products and baked goods, such as bread and muffins, is poised to help the segment retain its dominance in the coming years. Many online services now offer subscription-based deliveries for these daily staples, given their shorter shelf life. Customers can select from daily, bi-weekly, or weekly delivery options, catering to their specific needs.
- According to a recent survey by the National Retail Federation, over half of consumers have turned to online platforms for products they usually buy in-store. Companies like FarEye provide software solutions enabling retailers to optimize vehicle weight and volume, maximizing capacity. This not only reduces the number of drivers needed for the same delivery volume but also cuts delivery time by 27%. Consequently, this approach has boosted delivery agent productivity by 15%, yielding significant savings in time, cost, and resources.
- Both government and private investments are set to propel retail delivery growth in the next five years. For example, Walmart Canada has unveiled a USD 3.5 billion investment plan, aiming to enhance both online and in-store shopping experiences for its consumers.
- According to IBEF, India's e-retail market is on track to surpass USD 150 billion by 2027. This surge is fueled by robust post-pandemic growth and vast expansion potential, especially since online spending currently constitutes only 5-6% of total retail spending, a stark contrast to the higher rates seen in the US and China.
- While metro and tier-I cities in various countries have been primary drivers of the segment's growth, these areas are now witnessing saturation in quick commerce services. Consequently, market players are shifting their focus to tier-II cities, which have demonstrated significant growth potential in recent years.
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North America is Expected to Hold a Major Share of the Market
- In North America, a growing population, technological advancements, urbanization, and changing consumer purchasing behaviors are fueling the demand for online grocery shopping, creating significant market growth opportunities.
- Driven by health benefits, functional foods and beverages are rapidly gaining traction, propelling the North American online grocery delivery market. For example, Instacart has broadened its reach in Quebec, making same-day delivery accessible to 90% of Canadian households.
- Major players in the online grocery delivery arena are adopting diverse strategies, including partnerships, mergers and acquisitions, strategic alliances, product launches, and geographical expansion, to bolster their market presence. A case in point is Instacart's acquisition of Caper AI, a frontrunner in AI-driven shopping cart and checkout technology. This move not only strengthens Instacart's retailer enablement platform but also integrates seamlessly with its existing marketplace.
- Prominent players like Amazon Fresh and Walmart Inc. are pivotal in the swift adoption of ultra-fast delivery services. For instance, Metro, a Canadian grocery and pharmacy chain, has deepened its partnership with Instacart, allowing customers to order from its Adonis banner and discount formats like Super C and Food Basics, with deliveries in just an hour.
- Moreover, subscription-based services are increasingly captivating customers, boosting online grocery delivery orders. In a bid to enhance its home grocery delivery service, Walmart is set to hire over 3,000 delivery drivers in the U.S. and is investing in an all-electric delivery van fleet. Such strategic moves signal burgeoning opportunities for subscription-driven online grocery services.
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Online Grocery Delivery Industry Overview
With consumer preferences changing rapidly, the online grocery delivery market is highly competitive and attracts huge investments. Due to the huge growth potential, the market is moving toward fragmentation due to new entrants. The service providers are engaging in partnerships to promote product innovation. Key player include Walmart Inc., Amazon.com, Inc., Uber Eats, and others.
The market features a mix of established players, alongside numerous startups that are rapidly entering the space. These companies leverage their logistical capabilities and technology to provide expansive selections and efficient delivery options. Overall, the online grocery delivery market is poised for significant expansion as it adapts to evolving consumer needs and technological advancements, making grocery shopping more accessible and convenient than ever before.
Online Grocery Delivery Market Leaders
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Walmart Inc.
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Amazon.com, Inc.
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Uber Eats
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Just Eat
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Instacart
- *Disclaimer: Major Players sorted in no particular order
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Online Grocery Delivery Market News
- October 2024: Amazon launches rapid grocery delivery from Metropolitan Market and expands Weis Markets tie up. It is also expanding its existing grocery delivery service with Weis Markets to six additional stores in Pennsylvania, New Jersey, and New York (Hillsborough, NJ, Doylestown, PA, York, PA, Lititz, PA, Milton, PA, and Binghamton, NY).
- August 2024: Indian online grocery delivery app, Zepto, has secured USD 340 million in a follow-on financing round, placing the company at a USD 5 billion in valuation following its previous fundraise in June 2024.
Online Grocery Delivery Industry Segmentation
The study is structured to track the gross merchandise value of grocery items delivered once the order is placed through an online channel. Retail Delivery refers to delivery of grocery items from physical retail stores (supermarkets, brick-and-mortar shops, or grocery stores) when the order is placed through an online shop run by the retailer themselves. Quick Commerce refers to delivery services that support with last-mile delivery or operate ghost stores wherein the platform through which the order is placed are responsible for the deliverable. Meal Kit Delivery refers to the delivery of recipe boxes through subscription services are delivered from preparation by the customer.
The online grocery delivery market is segmented by delivery model (retail delivery, quick commerce, meal kit delivery), by geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Rest of Europe], Asia-Pacific [China, Japan, India, Rest of Asia-Pacific], Latin America [Brazil, Mexico, Argentina, Chile, Rest of Latin America], Middle East and Africa [United Arab Emirates, Saudi Arabia, South Africa, Rest of Middle East and Africa]). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Delivery Model | Retail Delivery | ||
| Quick Commerce | |||
| Meal Kit Delivery | |||
| By Geography*** | North America | United States | |
| Canada | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Asia | China | ||
| Japan | |||
| India | |||
| Australia and New Zealand | |||
| Latin America | Brazil | ||
| Mexico | |||
| Argentina | |||
| Chile | |||
| Middle East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| South Africa | |||
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Online Grocery Delivery Market Research FAQs
How big is the Online Grocery Delivery Market?
The Online Grocery Delivery Market size is expected to reach USD 0.67 trillion in 2025 and grow at a CAGR of 24.81% to reach USD 2.04 trillion by 2030.
What is the current Online Grocery Delivery Market size?
In 2025, the Online Grocery Delivery Market size is expected to reach USD 0.67 trillion.
Who are the key players in Online Grocery Delivery Market?
Walmart Inc., Amazon.com, Inc., Uber Eats, Just Eat and Instacart are the major companies operating in the Online Grocery Delivery Market.
Which is the fastest growing region in Online Grocery Delivery Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Online Grocery Delivery Market?
In 2025, the North America accounts for the largest market share in Online Grocery Delivery Market.
What years does this Online Grocery Delivery Market cover, and what was the market size in 2024?
In 2024, the Online Grocery Delivery Market size was estimated at USD 0.50 trillion. The report covers the Online Grocery Delivery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Online Grocery Delivery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Online Grocery Delivery Industry Report
Statistics for the 2025 Online Grocery Delivery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Online Grocery Delivery analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
