The global online grocery market size is estimated to grow at a CAGR of ~24% during the forecast period 2020-2027.
The online grocery market is majorly driven by increasing disposable income and increasing demand for easy accessibility to shopping. Furthermore, COVID-19 outbreak led to increase in preference of online shopping to maintain social distancing. Instead of sudden spike in demand of online grocery during COVID-19, the market analyst and company’s key personnel believes that the market will follow the positive trend with near to current market share captured during COVID-19 lockdown duration.
Sectoral Growth and Rising focus of Companies on Sub-Segments
The global e-commerce sales hit $25.6 trillion in 2018, with more than 1.4 billion people shopped in the same year, as per the United Nations Conference on Trade and Development. Surge in number of online shoppers and increasing sales of e-commerce sector is driven by technological developments, increasing disposable income of people in developing economies and rising focus of companies on various sub-segments such as grocery in current scenario.
In e-commerce sales, the United States top the list followed by Japan, China, Republic of Korea (South Korea) and UK with US$ 8.6 Bn, US$ 3.2 Bn, US$ 2.3 Bn, US$ 1.3Bn and US$ 0.98 Bn respectively.
Interestingly, from the above list, Republic of Korea hold the top position with 84% of the share considering major contribution of total e-commerce sales in GDP of the country.
The sectoral growth is majorly attributed to increasing number of smartphone users and growing internet penetration across the world. Hence, with ease of shopping through smartphones and rising hectic lifestyle of people across the globe is impacting the demand of online grocery.
Availability of different options from supply side and continuous technological advancements in the form of Internet of Things (IoT) and Artificial Intelligence (AI) which help companies to work on user experience and to track user pattern are increasingly contributing towards market growth.
Lack of physical evidence and issues related to cybersecurity may hamper the market growth during the forecast period. However, companies are working on offering secure platforms along with various discount options and fast delivery to gain customer’s trust towards online shopping.
North America led the online grocery market with significant share in global e-commerce sales
North America online grocery market acquire majority of the market share in the global online grocery market with more than 1/6th of the share in revenue pie. The regional dominance is attributed to various factors including presence of majority of companies in the region as major one followed by major share of North America in global e-commerce sales.
The Asia-Pacific online grocery market is anticipated to grow at fastest growth rate with a CAGR of ~27% during the forecast period 2020-2027. The regional growth is attributed to aggressive initiative taken by Indian government to boost digitalization in the country with ‘Digital India Campaign’. The country recorded 636.7 million internet users in 2019 which is anticipated to reach 829 million by the end of the year 2021. With tremendous growth rate in internet penetration in India and high internet-user base in China, the APAC region seems to be a lucrative region for the online grocery market.
Companies operating in the Global Online Grocery Market
AEON Co., Ltd., Alibaba.com, Amazon.com, Inc., Grofers India Pvt. Ltd., Instacart, JD.com, Inc., Rakuten, Target Brands, Inc., Tesco.com and Walmart among others are some major players included in the research study of the global online grocery market.
Segmentation Overview of the Global Online Grocery Market
By Product Type
- Fresh Produce
- Breakfast & Dairy
- Snacks & Beverages
- Staples & Cooking Essentials
By Shopper Type
- Gen Z
- Gen X
- Gen Y
- Baby Boomers
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