The Global online grocery market size was estimated at USD 285.70 billion in 2022 and is expected to reach USD 354.28 billion by 2030 at a CAGR of 25.3% during the forecast period.

The market is segmented based on the type of delivery, including same-day delivery, next-day delivery, and scheduled delivery. Same-day delivery is the most popular type, as it provides customers with the convenience of receiving their groceries on the same day they place their order.

Convenience: One of the main driving factors is the convenience offered by online grocery shopping and home delivery. Customers can shop for groceries from the comfort of their own homes and have them delivered to their doorsteps, saving time and effort.

Rising demand for online shopping: The increasing popularity of online shopping, coupled with the widespread availability of high-speed internet and mobile devices, has made it easier for customers to shop for groceries online.

Limited reach: One of the main limitations of grocery delivery services is their limited reach. Companies may not be able to offer delivery services in all areas due to logistical constraints, which may limit their market potential.

High delivery costs: The cost of delivering groceries can be high, particularly for same-day or scheduled deliveries. This may limit the affordability of these services for some customers.

Logistics and fulfillment: Delivering groceries requires a complex logistics and fulfillment system, which can be challenging to manage and optimize. Companies must ensure that they have sufficient inventory, delivery personnel, and transportation capacity to meet customer demand.

Customer retention: With increasing competition in the market, companies must focus on retaining customers by providing a high-quality, personalized experience. This may require investment in customer service and loyalty programs.

Expansion into new markets: Grocery delivery companies can expand into new markets, particularly in developing countries where there is a growing middle class and increasing demand for convenience and time-saving services.

Partnerships and collaborations: Companies can collaborate with other players in the industry, such as farmers, food processors, and transportation companies, to optimize their supply chain and improve their offerings.

Market Dynamics

The market is also segmented based on the mode of transportation, including bicycle, motorcycle, car, and drone. Bicycle and motorcycle delivery are the most common modes of transportation in densely populated urban areas, while cars are used for longer distances and rural areas. Drones are expected to play an increasingly important role in the future, particularly for deliveries to remote locations.

Cash on delivery is a popular payment method in developing countries, where many customers do not have access to credit or debit cards. Bank transfers offer a secure and convenient way for customers to pay for their orders directly from their bank account.

Mobile payment apps, such as Venmo and Square Cash, offer a convenient way for customers to pay for their orders using their mobile devices. Cryptocurrencies, such as Bitcoin and Ethereum, are a relatively new payment method that offer a secure and decentralized way for customers to pay for their orders.

The key players in the global grocery delivery market include Amazon, Instacart, Walmart, Peapod, and FreshDirect. These companies are investing heavily in technology to improve their delivery services, such as predictive analytics, machine learning, and artificial intelligence.

Walmart is another major player in the grocery delivery market, with its Walmart Grocery service. The service offers same-day and next-day delivery options for groceries, as well as curbside pickup.

Instacart is a grocery delivery platform that partners with various retailers, including Whole Foods, Costco, and Safeway, to offer same-day and next-day delivery options. The company also offers a subscription service for unlimited free deliveries.

Regional Analysis

The Latin American market for online grocery delivery is still in the early stages of development, but is expected to grow rapidly in the coming years. The region is characterized by a large and growing middle class, increasing internet penetration, and a preference for cash-based payments.

The Middle East and Africa market for online grocery delivery is also in the early stages of development, but is expected to grow rapidly in the coming years. The region is characterized by a growing middle class, increasing internet penetration, and a preference for mobile commerce.

The COVID-19 pandemic has also had a significant impact on the grocery delivery market, as more people are opting for online shopping and home delivery services to avoid crowded stores and minimize the risk of exposure to the virus. This trend is expected to continue even after the pandemic subsides, as customers have become accustomed to the convenience and safety of online shopping.

Competitive Analysis

In 2021, Instacart announced that it had raised $265 million in a funding round led by existing investors, valuing the company at $39 billion.

In 2020, Uber acquired Postmates, a food and grocery delivery platform, for $2.65 billion. The acquisition allowed Uber to expand its delivery services and gain access to Postmates' network of retailers and restaurants.

In 2019, Amazon acquired a 49% stake in Future Retail, an Indian retailer that operates Big Bazaar supermarkets. The investment allowed Amazon to expand its presence in the Indian grocery market.

In 2018, Walmart acquired Cornershop, a Chilean grocery delivery platform, for $225 million. The acquisition allowed Walmart to expand its grocery delivery services in Latin America.

In 2017, Alibaba acquired a 36% stake in Sun Art Retail Group, a Chinese retailer that operates supermarkets and hypermarkets. The investment allowed Alibaba to expand its presence in the Chinese grocery market.

Segmentation Analysis of The Global Grocery Delivery Market 2022-2030

The report forecasts revenue growth at global, regional, and country matrics and analyzes the latest industry trends in each of the sub-segments ranging from 2016-2030. For this, CDI has segmented the global Grocery Delivery market report based on capacity, vehicle, application, and propulsion type along with regional analysis.

Product Type Outlook (Revenue, USD Million, 2017 - 2028)

• Fresh Produce
• Breakfast & Dairy
• Snacks & Beverages
• Meat & Seafood
• Staples & Cooking Essentials
• Others

Payment Method Outlook (Revenue, USD Million, 2017 - 2028)

• Online
• Offline (Cash on Delivery)

Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America