The Online Grocery Market is valued at around USD 350.55 billion in 2022 and is expected to reach USD 2778.4 billion by 2030, registering a CAGR of 25.3% over the forecast period.
The practise of using e-commerce platforms to buy packaged and fresh foods, as well as other necessary home supplies, is known as online grocery shopping. These platforms offer flexible payment options and let customers to track the delivery process, select multiple delivery times, and access a range of products. They also save time by not having to make many trips to the grocery store. As a result, online grocery stores are growing in popularity, especially with city dwellers.
Nearly 90% (by volume) of online grocery orders are placed through smartphone applications, with the remaining 10% done through web-based systems.
Leading businesses from around the world have spent more than $100 million in start-ups for online grocery stores over the past three quarters.
Food packaging is likely to be purchased more frequently online. By the end of the year, packed food is expected to represent more than 50% of the worldwide online grocery business in terms of product kinds.
Foods in packages make up a sizable portion of this market. Because consumers have access to such a wide range of food goods, packaged foods dominate this market. Bread, canned vegetables, dairy goods, meat products, cakes, biscuits, ready-to-eat meals, and a variety of other items are some of them.
Consumers aim to select alternatives that enable them to maintain flexibility and punctuality in their time management because of their increasingly hectic schedules and desire for a successful career life. Online stores don’t have set business hours, so customers may shop whenever it’s convenient for them, providing convenience and flexibility.
The sector has expanded quickly and offers simple doorstep delivery, better-quality goods, and no geographic restrictions. Due to the ease of home delivery, online transactions are more common than physical ones. Due to the great quality of today’s products available for purchase online, clients are more likely to make repeat purchases from a single website. This is as a result of the company’s excellent product quality.
The industry has grown quickly as a result of increasing attention being paid to growing e-commerce enterprises and the use of appealing marketing tactics. Due to growing competition and the abundance of shops in unorganised sectors, online retailers are implementing free delivery policies and providing large discounts. Online grocery businesses are expanding because people respect them.
The Online Grocery Market – Segmentation
The Online Grocery Market fragrance concentrates market has been sub-classified into product type, purchaser type, delivery type, end-user.
On the basis of ingredient type, the Online Grocery Market is bifurcated into:
• Packed foods
1) Snacks- chips and crisps, salty snacks, dried fruits, mixed nuts, popcorn.
2) Baked products- cookies, cakes and pastries, breads and rolls, frozen desserts, confectioneries.
3) Breakfast and cereal- cereal and breakfast bars, granola and museli, energy boosting breakfast, others (syrups, pancakes, etc).
4) Ready to eat foods- instant noodles, pasta, sandwiches, smoked fish.
5) Ready to drink beverages- aspetic juice, iced tea, flavoured milk, soft drinks, energy drink, instant coffee, canned sodas, non-alcoholic drinks.
6) Dairy products- milk, yogurt, cheese, butter, and others.
7) Staples and cooking essentials- salt and spices, sauces, coffee/tea powder, pickles, oils/vinegar, honey/jam.
8) Fresh produce- fruits and vegetables, meat and seafood.
On the basis of purchaser type, the market is segmented into:
• On time purchase
On the basis of Delivery type, the market segmented into:
• Home delivery- company owner stores, third party stores
• Third-party stores
• Click and collect
On the basis of end-user, the market segmented into:
The Online Grocery Market – Key Market players
Global key players of Online Grocery Market include AEON Co., Ltd., Alibaba.com, Amazon.com, Inc., Blinkit (formerly Grofers), Instacart, JD.com, Inc., Natures Basket Limited, Rakuten, Reliance Retail (Reliance Fresh), Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), Target Brands, Inc., Tesco.com, The Kroger Co., and Walmart.