The rising penetration of the internet and smartphones, followed by the fundamental shift in the consumer’s preference towards online shopping, are the two major factors that are driving the growth of the online grocery market over the coming years.
Increasing disposable income of individuals, the growing number of smartphone users, shift to convenient shopping, and the COVID-19 outbreak are the significant factors that are strengthening the growth of the market. E-commerce is one of the most evolving industries with the existence of different service providers across the globe. Online grocery platforms offer a wide range of products that are not available in local stores. In the current scenario, most of the population is working and busy; therefore the online shopping of groceries saves time by eliminating the need to stand in the long queue for billing and parking issues. Through online grocery shopping, billing could be done within a few minutes, and products are delivered at the doorstep. Additionally, online vendors offer multiple offers and discounts, which is attracting a large number of consumers into the market. The products ordered online could even be returned or replaced through a home pickup facility. The combination of these factors is responsible for the expansion of the online grocery market size over the coming years.
As per the online grocery market report, the widespread outbreak of the COVID-19 pandemic is another factor that is surging the demand of the market. With the rising emphasis on social distancing, individuals have started adopting online shopping platforms at a higher rate as payments are made through digital platforms and no contact deliveries are available at doorsteps.
On the basis of product, the staples & cooking essentials segment exhibits substantial growth potential and is predicted to gain traction over the forecast period. The staples & cooking essentials include cereals, root vegetables, fruits, and others, which are the basic necessities for human survival. The strong demand for these staples is the major factor that is energizing the demand of the segment. Moreover, the breakfast & dairy products segment is expected to be fastest growing segment during the forecast period. This is attributed to the accelerating demand for milk, curd, yogurt, and others among individuals. With a busy lifestyle, people have started consuming healthy products, which has also increased the growth of the segment around the world.
On the basis of the region, the North American region is anticipated to dominate the online grocery market in the next six years. This is due to the large presence of key players in the market in this region. The consumers are widely adopting technologically advanced devices such as smartphones and other smart devices and now prefer to purchase groceries through online mode. In contrast, the Asia-pacific is projected to witness a higher CAGR during the forecast period owing to the rising disposable income and changing lifestyles of citizens, especially in the developing economies.
The key players of the online grocery market include Amazon.com, Inc., Target Brands, Inc., Tesco.com Ltd., Grofers India Pvt. Ltd., Instacart Inc., AEON Co., Ltd., Alibaba Group Holding Ltd., JD.com, Inc., Rakuten Inc., and Walmart Inc., among others.
The research report on the online grocery market provides an in-depth analysis of the market revenue based on the product, business model, and region for the forecast period from 2020 to 2027. The report highlights the major market drivers propelling the growth as well as challenges faced by the market participants. The research report also provides market size and forecast for the market. The report also analyses the competitive landscape, major players, and their strategies in 2019. The competitive landscape section of the report captures and highlights the recent developments in the market.