Online Grocery Market: Fresh Produce Segment Is Anticipated To Grow At A CAGR Of Over 24% From 2022 To 2030
Online Grocery Industry Overview
The global online grocery market size is expected to reach USD 2,158.53 billion by 2030, growing at a CAGR of 25.3% from 2022 to 2030, according to a new study by Grand View Research Inc. The changing consumer behavior, the growing preference for contactless shopping and adherence to social distancing norms, and a paradigm shift toward buying fresh food and grocery online, particularly in the wake of the outbreak of the COVID-19 pandemic, are some of the major factors that are expected to drive the growth of the market over the forecast period.
Continued urbanization, the rising number of tech-savvy consumers, and the unabated growth of the e-commerce industry worldwide have been driving consumer preference toward buying the essentials over the internet. Easy access to a myriad of products from different vendors, ease of ordering, seamless digital payments, attractive offers, such as discounts and cashback, and convenient and flexible delivery have also been encouraging consumers to consider e-commerce channels for buying the essentials. As a result, online penetration in grocery shopping increased three folds as of the end of 2020 from the pre-pandemic levels.
The rise of shopping subscriptions is another factor driving the growth of the market. Almost every major market player is offering a subscription option for consumers. For instance, in the U.S., Kroger Co. offers a USD 79 annual subscription program known as the “Delivery Savings Pass”. The program envisages waiving the fees worth USD 10 the company usually charges for delivery, albeit the orders need to be of USD 35 or more. Similarly, Walmart’s Walmart+ membership program also charges customers USD 98 per year for free delivery on all grocery orders worth more than USD 35.
In India, leading market players, such as BigBasket and Blinkit (formerly Grofers), have been playing a niche role in driving the adoption of subscription services rapidly. For instance, BigBasket’s BB Star Membership program starts at USD 3.92 (INR 299) for six months and allows customers to avail of free delivery, cashback, and access to priority slots. The benefits associated with such subscription services are expected to help online grocers in building trust among customers, and subsequently, encourage more customers to opt for the annual subscription services, thereby driving the growth of the market over the forecast period.
The outbreak of the pandemic has played a decisive role in driving the preference for ordering groceries online. While some individuals opted for the e-commerce channel for convenience, others opted for the same to enjoy a user-friendly shopping experience. However, factors, such as the lack of any personalized involvement and the inability to touch and feel the product to check its freshness and durability are expected to hinder the market growth. A looming lack of trust in online payment methods, especially in emerging economies, is also expected to restrain the growth of the market.
Online Grocery Market Segmentation
Grand View Research has segmented the global online grocery market based on product type and region:
Based on the Product Type, the market is segmented into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, and Others.
- The staples & cooking essentials segment accounted for the largest market share of over 27% in 2021. Repetitive buying of staples, such as flours, food grains, and cooking essentials, including oil, which are considered necessities, especially in the households across Asia Pacific, allowed the segment to dominate the market.
- The breakfast & dairy segment is expected to emerge as the fastest-growing segment growing at a CAGR of over 25% from 2022 to 2030. The growth of the segment can be attributed to the rising demand for various milk and non-milk products and the doorstep delivery of these products being facilitated by vendors.
Key Companies & Market Share Insights
The online grocery market can be described as a fragmented market characterized by intense competition between the key market players. Some of the major players operating in the market include Alibaba.com; Amazon.com, Inc.; JD.com, Inc.; Rakuten; Instacart; and Walmart. These companies are pursuing various inorganic growth strategies to remain competitive while catering to the changing consumer needs. Smaller players are particularly collaborating with market leaders to build the infrastructure, scale, and capabilities that would otherwise require years to build. Some of the prominent players in the global online grocery market include
- AEON Co., Ltd.
- com
- com, Inc.
- Blinkit (formerly Grofers)
- Instacart
- com, Inc.
- Natures Basket Limited.
- Rakuten
- Reliance Retail (Reliance Fresh)
- Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
- Target Brands, Inc.
- com
- The Kroger Co.
- Walmart
Order a free sample PDF of the Online Grocery Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
Comments
Post a Comment