Online Grocery Market Overview

The prevailing and published market trends suggest that the online grocery market size was valued at USD 11.5 Billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.61% from 2023 to 2032.

The online grocery market has gained immense traction over the past months because of the changing lifestyle of the consumers, growing urbanization, and the tech-savvy generation who prefers buying products online. With the growth in the disposable income of people followed by their busier lifestyles, people are increasingly seeking out customizable and convenient online platforms for grocery shopping instead of walking down to the neighborhood vendors. The rising preference for online delivery of grocery products became more visible following the COVID-19 outbreak. With the social distancing standards, consumers focus on online grocery shopping, which is a convenient and safer option. 

Initiatives such as no contact delivery and online payment have attracted consumers to buy their regular groceries from several online platforms, like Amazon, BigBasket, Grofers, etc. With the safety concerns encircling coronavirus and a large section of the citizens working from home, consumers' dependence on the online platform has increased significantly. It has provided several growth avenues to the market.

Market Segmentation

The online grocery market segmentation helps meet the global audience's needs and maintain a proper flow of the market demand and supply. The segmentations are as follows:

  • Product Type Outlook
    • Fresh Produce
    • Breakfast & Dairy
    • Snacks & Beverages
    • Meat & Seafood
    • Staples & Cooking Essentials
    • Others
  • Payment Method Outlook
    • Online
    • Offline (Cash on Delivery)
  • Regional Outlook
    • North America
    • Europe
    • APAC
    • RoW

Regional Analysis

In 2022, as a part of the APAC region in the online grocery market, India held the largest share of 34.6% in revenue. The Indian region is expected to maintain its lead over the forecast period. The regional growth is attributed to several prominent online grocery market players, such as Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), Grofers India Pvt. Ltd., and others like Amazon India Pvt. Ltd., in the region. Big Basket is the most preferred online grocery in the South Indian cities like Hyderabad and Bangalore. A prevalent change in the consumer landscape and becoming more accustomed to online shopping have been the key factors for the growth of online grocery in these markets.

West India is projected to be the second-fastest-growing region with a CAGR of 37.3% during the forecast period. This upsurge is because of the growing adoption of online grocery platforms by technically advanced millennials and working women. Cities such as Pune and Mumbai in West India consist of many working professionals who prefer buying groceries online owing to the convenience and comfort it offers. These factors are expected to provide growth avenues to the West India online grocery market shortly.

Industry News

For instance, in November 2022, Amazon India Pvt. Ltd. started with the operations of its online grocery store Amazon Fresh in 4 more cities, namely Pune, Ahmedabad, Kolkata, and Chennai. The company stated that the service had been initiated in these cities by expanding its specialized geographical network that facilitates ultra-fast delivery services of groceries and daily essentials under the Amazon Fresh Store on

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