E-Grocery Trends 2023-2030
The global online grocery market is projected to experience significant growth, with a compound annual growth rate (CAGR) of 15.3% between 2023 and 2030. This growth is expected to result in a market valuation of USD 50,540 million by 2028. Several key factors drive this growth, including increased product availability through online platforms, the convenience of online shopping, evolving customer behavior, heightened competition and investment, and technological advancements. Major industry players such as Walmart, Amazon, Kroger, Target, FreshDirect, Carrefour, Tesco, ALDI, Coles Online, BigBasket, Longo, Schwan Food, Honestbee, and Alibaba dominate the market.
Europe represents the largest market share, followed by North America and Asia-Pacific. Online grocery shopping is predicted to account for 18-30% of the food-at-home market in some leading European countries by 2030. The market can be segmented by type into packaged foods, the largest product segment, and fresh foods. The end-user segments consist of personal shoppers, the largest segment, and business customers.
To remain competitive, traditional grocery retailers should focus on defining their value propositions, creating a scalable operating model, and considering partnerships to complement their strengths. They should view online channels as a future driver of growth, assess the impact of online platforms on physical stores, and develop a strategy to achieve profitability.
This white paper provides a comprehensive analysis of the online grocery market, including a SWOT analysis, PESTAL analysis, and expert opinions. The report emphasizes market size, share, growth, trends, segmentation, and future demand, covering geographic regions such as South America, North America, Asia-Pacific, the Middle East and Africa, and Europe.
- Market Overview
2.1. Market Definition
2.2. Market Segmentation
2.3. Market Dynamics
- Market Analysis
3.1. SWOT Analysis
3.2. PESTAL Analysis
3.3. Industry Trends and Challenges
- Market Segmentation
4.1. By Type
The global online grocery market can be segmented by type into two main categories: packaged foods and fresh foods. This section provides an overview of both segments and highlights their respective growth trends and market shares.
4.1.1. Packaged Foods
Packaged foods represent the largest product segment in the online grocery market. This category includes a wide variety of products, such as canned goods, ready-to-eat meals, snacks, beverages, and other non-perishable items. The growth in this segment is fueled by the convenience and longer shelf life of packaged foods, as well as consumers’ increasing preference for time-saving meal options.
Online grocery retailers have been expanding their selection of packaged foods to cater to diverse consumer tastes and dietary preferences. The demand for organic, gluten-free, and vegan packaged food options has also been on the rise, reflecting a growing focus on health and wellness among consumers.
4.1.2. Fresh Foods
The fresh foods segment comprises perishable items such as fruits, vegetables, dairy products, meats, and seafood. Although this segment represents a smaller share of the online grocery market compared to packaged foods, it has experienced significant growth in recent years. This growth can be attributed to advancements in cold chain logistics and packaging technologies, which have enabled online retailers to deliver fresh products with minimal spoilage and loss of quality.
Consumer demand for locally sourced and organic produce has also contributed to the growth of the fresh foods segment. Online grocery retailers are increasingly partnering with local farmers and suppliers to offer a wider selection of fresh products that meet consumers’ quality and sustainability expectations.
In conclusion, both packaged and fresh foods segments play a crucial role in the online grocery market. Retailers should continue to expand and diversify their product offerings to cater to evolving consumer preferences and capitalize on emerging market opportunities.
4.2. By End-User
The global online grocery market can be segmented by end-user into two main categories: personal shoppers and business customers. This section provides an overview of both segments and highlights their respective growth trends and market shares.
4.2.1. Personal Shoppers
Personal shoppers represent the largest end-user segment in the online grocery market. This segment primarily consists of individual consumers who purchase groceries for their households. The increasing convenience and availability of online grocery shopping platforms have contributed to the growth of this segment. Personal shoppers are attracted to the ease of use, time-saving benefits, and the ability to compare prices across different retailers online. Furthermore, personalization and recommendation algorithms enable online grocery retailers to offer a tailored shopping experience, fostering customer loyalty and driving repeat purchases.
4.2.2. Business Customers
The business customer segment comprises organizations that purchase groceries for commercial purposes, such as restaurants, catering services, hotels, and other foodservice establishments. This segment has experienced considerable growth due to the increasing adoption of e-commerce platforms, streamlining the procurement process, and offering better visibility into product availability and pricing. Business customers benefit from bulk purchasing discounts, scheduled deliveries, and tailored product offerings that cater to their specific needs.
In conclusion, both personal shoppers and business customers drive the growth of the online grocery market. The ongoing expansion of e-commerce platforms and technological advancements is expected to further fuel the growth of these end-user segments. Online grocery retailers should tailor their offerings to cater to the unique requirements of each segment, ensuring continued market expansion and customer satisfaction.
4.3. By Region
- Regional Analysis
5.2. North America
5.4. South America
5.5. Middle East and Africa
- Competitive Landscape
6.1. Market Share Analysis
In the highly competitive online grocery market, understanding the market share of key players is essential to gaining insights into the industry landscape. This section presents an analysis of the market share held by leading companies in the global online grocery market.
Walmart, a multinational retail corporation, has emerged as a dominant player in the online grocery space. Leveraging its extensive network of physical stores, Walmart offers a seamless omnichannel shopping experience with services like home delivery, curbside pickup, and express delivery. The company has been investing heavily in technology and logistics to further strengthen its position in the market.
Amazon, the e-commerce giant, has made significant strides in the online grocery market, primarily through its acquisition of Whole Foods Market and the launch of Amazon Fresh. Amazon’s extensive distribution network, innovative delivery solutions, and focus on customer experience have made it a formidable competitor in this space.
Kroger, one of the largest supermarket chains in the United States, has been expanding its online grocery offerings to meet the growing consumer demand for convenient shopping options. The company’s strategic partnership with Ocado, a UK-based online supermarket, has allowed Kroger to leverage advanced automation and technology to enhance its e-grocery services.
6.1.4. Other Key Players
Other prominent players in the online grocery market include Target, FreshDirect, Carrefour, Tesco, ALDI, Coles Online, BigBasket, Longo, Schwan Food, Honestbee, and Alibaba. These companies have been investing in technology, delivery infrastructure, and customer experience to gain a competitive edge in the market.
In conclusion, the global online grocery market is dominated by a few major players, while several smaller players are also vying for market share. The market share analysis indicates a highly competitive landscape, with companies striving to differentiate themselves through innovative solutions, strategic partnerships, and a focus on customer experience. To maintain or grow their market share, online grocery retailers need to continuously adapt to changing consumer behavior, invest in technology, and explore new market opportunities.
6.2. Key Players Analysis
6.3. Strategies for Traditional Retailers
- Market Opportunities and Future Demand
7.1. Technological Advancements
7.2. Evolving Customer Behavior
The online grocery market is significantly influenced by evolving customer behavior. As consumers become more comfortable with e-commerce and technology, their expectations and shopping habits also change. This section discusses some key trends in customer behavior that are shaping the future of the online grocery market.
7.2.1. Convenience and Time Savings
One of the main factors driving the growth of online grocery shopping is the increased convenience and time savings it offers. Consumers are increasingly prioritizing convenience, leading them to choose online platforms that allow them to shop at any time and from any location. Retailers must continue to optimize their platforms and delivery options to cater to this growing demand for convenience.
7.2.2. Personalization and Recommendations
Consumers are becoming more accustomed to personalized shopping experiences, thanks to advanced algorithms and data-driven recommendations. Online grocery retailers should leverage customer data to provide personalized product suggestions and targeted promotions, enhancing customer satisfaction and fostering loyalty.
7.2.3. Health and Sustainability
Health and sustainability concerns are increasingly influencing consumer choices. As a result, online grocery retailers should offer a wide range of healthy and eco-friendly products, as well as provide transparent information on product sourcing and environmental impact. This focus on health and sustainability can help retailers differentiate themselves from competitors and appeal to a growing segment of conscious consumers.
7.2.4. Social Media and Influencer Marketing
Social media platforms and influencer marketing play a crucial role in shaping consumer behavior, particularly among younger demographics. Online grocery retailers should harness the power of social media to engage with consumers, showcase products, and promote special offers. Collaborating with influencers can help retailers reach new audiences and drive brand awareness.
7.2.5. Omnichannel Shopping Experience
Consumers are increasingly seeking seamless shopping experiences across both online and offline channels. Retailers should invest in creating a cohesive omnichannel experience, allowing customers to shop, compare, and purchase products across multiple touchpoints.
In conclusion, evolving customer behavior presents both challenges and opportunities for online grocery retailers. To succeed in this rapidly changing landscape, retailers must remain agile, continuously adapting to new trends and consumer preferences. By focusing on convenience, personalization, health and sustainability, social media engagement, and omnichannel experiences, online grocery retailers can maintain a competitive edge and drive long-term growth.
7.3. Market Expansion Strategies
8.1. Key Findings
This white paper has provided a comprehensive analysis of the global online grocery market, focusing on its growth trends, segmentation, and future demand. Based on the research, the following key findings have emerged:
- The global online grocery market is projected to grow at a CAGR of 15.3% between 2023 and 2030, reaching a value of USD 50,540 million by 2028.
- This growth is primarily driven by factors such as increased product availability through online platforms, the convenience of online shopping, evolving customer behavior, heightened competition and investment, and technological advancements.
- Major industry players, including Walmart, Amazon, Kroger, Target, FreshDirect, Carrefour, Tesco, ALDI, Coles Online, BigBasket, Longo, Schwan Food, Honestbee, and Alibaba, dominate the market.
- Europe represents the largest market share, followed by North America and Asia-Pacific.
- The market can be segmented by type into packaged foods, the largest product segment, and fresh foods, and by end-user into personal shoppers and business customers.
- To remain competitive, traditional grocery retailers should focus on defining their value propositions, creating a scalable operating model, and considering partnerships to complement their strengths.
- Evolving customer behavior presents both challenges and opportunities for online grocery retailers. They must adapt to new trends and consumer preferences to maintain a competitive edge and drive long-term growth.
These key findings offer valuable insights into the online grocery market’s current landscape and future prospects. As the market continues to grow and evolve, retailers must stay agile and responsive to consumer needs and emerging trends to ensure long-term success.