Friday , April 19 2024

Online Grocery Market Makes $258.6 Billion in 2022

A new report has revealed that the global online grocery market generated $258.6 billion in 2022.

According to the report published by the Allied Market Research titled, “Online Grocery Market”, the global Online Grocery Market is anticipated to generate $965.4 billion by 2032, witnessing a CAGR of 14.3% from 2023 to 2032.

The report noted that online grocery market has witnessed numerous recent developments that are focused on improvement and enhancement of online grocery delivery services. One of the major industry players such as Amazon, which operates as Amazon Fresh, an online grocery company, has invested largely in the Indian market.

Prime Determinants of Growth

The online grocery market is driven by technological advancements and expanding internet penetration. The continuous progress in e-commerce technology, mobile applications, and logistics has significantly enhanced the overall shopping experience for consumers.

User-friendly interfaces and secure payment gateways ensure a seamless and efficient purchasing process, which attracts more customers to adopt online grocery shopping.

Furthermore, the market has seen partnerships as the popular choice among the companies for expanding their market presence and businesses. Companies come together to deliver better services to their customers by utilizing each other’s existing market capabilities and technologies due to high competition among key online grocery providers.

The Fresh Produce Segment to Maintain its leadership Status Throughout the Forecast Period

Based on product type, the fresh produce segment held the highest market share in 2022, accounting for more the one-fifth of the global online grocery market revenue and is estimated to maintain its leadership status throughout the forecast period. Personalized recommendations and subscription services for fresh produce also surge the market demand for the fresh produce segment in the market.

However, the RTE food segment is projected to manifest the highest CAGR of 15.2% from 2023 to 2032, due to consumers increasingly seeking quick and hassle-free solutions for their busy lifestyles. Health-conscious RTE choices, including organic and plant-based options, are also gaining popularity.

The Scheduled Deliveries Segment to Maintain its Leadership Status throughout the Forecast Period

Based on delivery type, the scheduled deliveries segment held the highest market share in 2022, accounting for more than three-fifths of the global online grocery market revenue and is estimated to maintain its leadership status throughout the forecast period.

Consumers are opting for scheduled deliveries that align with their preferred time slots, accommodating busy schedules and reducing waiting times. However, the instant delivery segment is projected to manifest the highest CAGR of 14.5% from 2023 to 2032. The market trends of instant delivery in the online grocery market include a growing preference for quick and on-demand grocery services.

North America to Maintain Dominance by 2032

Based on region, North America held the highest market share in terms of revenue in 2022, accounting for more than one-third of the global online grocery market revenue, due to increase in consumers’ preference toward convenience and time-saving shopping experiences has fueled the growth of online grocery platforms in this region.

However, the Asia-Pacific region is expected to witness the fastest CAGR of 15.4% from 2023 to 2032. In the Asia-Pacific region, online grocery market trends include rapid growth driven by increasing internet penetration and smartphone adoption.

 

About Bukola Olanrewaju

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