The act of buying food and household goods online or through mobile applications and having them delivered right to the customer's door is referred to as "online grocery shopping." Customers can use digital platforms provided by supermarkets, specialty online grocery stores, and grocery merchants to peruse, choose, and buy goods from a vast assortment of products. Because it's convenient, time-saving, and allows you to shop from home, online grocery shopping is becoming more and more popular, especially with urban consumers.

Convenience, time savings, accessibility, a large product selection, personalization, flexible delivery options, cost savings, and contactless shopping are just a few advantages that come with online grocery shopping for customers. Because it does away with the need to visit real stores, it's perfect for folks who are busy, have small children, are elderly, or have mobility problems. With a few clicks or taps, customers can rapidly locate and get groceries online, eliminating the need to drive to and from stores.

Major Key Players Mentioned in this Premium Report

Amazon (US), Whole Foods Market (US), Meijer (US), Walmart (US), Instacart (US), Shipt (US), FreshDirect (US), Kroger (US), Lidl (Germany), EDEKA Group (Germany), Rewe Group (Germany), Tesco PLC (UK), Ocado Group (UK), Sainsbury's (UK), Asda (UK), Carrefour (France), Ahold Delhaize (Netherlands), Alibaba Group (China), JD.com (China), BigBasket (India), Reliance Retail (India), Rakuten (Japan), Coles Group (Australia), Woolworths Group (Australia), and Other Major Players.

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Growth

The pandemic outbreak has particularly driven the preference for online grocery shopping. Easy availability of time slots, lower service fees, and the convenience associated with picking up groceries while on the way are encouraging individuals to opt for click & collect services, book groceries online, and pick up the items they ordered at their convenience while avoiding crowds. As a result, grocers are rapidly building click-and-collect capabilities to ensure a convenient and robust customer experience throughout their network of stores.

The online channel offers more options for consumers than conventional channels. Further, e-commerce portals allow consumers to compare various products with each other and make informed buying decisions. It also allows grocers to build brand awareness while focusing on quality. In addition, features such as saved preferences and order history for reordering are also adding to the convenience of consumers and encouraging them to opt for online grocery shopping, thereby driving the market's growth.

Learn more about key segments shaping this market

By Product Type

·         Fresh Produce

·         Packaged Foods

·         Frozen Foods

·         Beverages

·         Household Essentials

By Platform

·         Application

·         Website

By Distribution Channel

·         Instant Delivery

·         Schedule Delivery

·         Click and Collect

Trends

Technological advancements, continued urbanization, and a paradigm shift in consumers' shopping habits drive the preference for grocery shopping through online channels. Innovative business models, such as slotted or express delivery and on-demand or subscription delivery models, introduced by grocers are also encouraging consumers to opt for online grocery shopping. Attractive discounts offered by service portals and rising levels of disposable income also play a vital role in driving the market's growth.

Various delivery options, such as immediate or same-day delivery and click & collect, are an uptrend favoring the market's growth. For instance, in the U.S., grocers offer contactless grocery delivery and fast-track the delivery to next-day or same-day delivery. This encourages small-scale grocers to join forces with third-party service providers, such as Instacart, and make a foray into the market. Food-delivery platforms, such as Swiggy and DoorDash, delivering online groceries present opportunities for market growth.

Geographic Coverage

·         North America (U.S., Canada, Mexico)

·         Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

·         Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

·         Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

·         Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

·         South America (Brazil, Argentina, Rest of SA)

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Online Grocery Market Report Scope

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Key Industry Developments in the Online Grocery Market:

·         In August 2023, Amazon launched the biggest overhaul of its grocery business since it acquired Whole Foods Market six years ago revamping stores, testing new highly automated warehouses, and, for the first time, offering fresh-food delivery to customers who aren’t Prime subscribers. In a move likely to play well with shoppers, the company also plans to merge its various e-commerce supermarket offerings from Whole Foods, Amazon Fresh, and Amazon.Com into one online cart.

·         In December 2022, Meijer announced its new partnership with Uber Technologies, Inc. privately owned to offer on-demand and scheduled grocery delivery to customers across the Midwest, and solidifying Uber Eats' national expansion of grocery selection for consumers across Illinois, Indiana, Kentucky, Michigan, Ohio, and Wisconsin.

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