How Big is the Online Grocery Market? 

Online grocery stores have exploded in popularity, making it possible for consumers to buy their groceries at any time, anywhere. Amazon, for example, recently bought Whole Foods to expand its brick-and-mortar presence. Walmart, meanwhile, leverages partnerships with third-party delivery companies to offer grocery services. With so many options, it is no surprise that grocery retail is experimenting with new strategies to remain relevant and meet consumer demands. 

Forecast to reach 187.7 billion U.S. dollars by 2024 

The US online grocery market is growing steadily and is expected to reach 187.7 billion U.S. dollars by 2024, according to the Statista website. To successfully capitalize on this opportunity, you need to first understand what makes this market such a compelling business. Grocery delivery requires understanding consumer behavior and catering to the needs of smaller towns and the elderly and disabled. 

According to Edge by Ascential, Amazon will overtake Walmart in the U.S. by 2024, adding over $294 billion in sales in that period. The report states that by 2026, Walmart will have lost its top spot to Amazon. Retail sales are based on gross merchandise value, not prices, so Amazon will have a huge advantage in this market. By 2021, the U.S. online grocery market will grow to 187.7 billion dollars. 

Breakup by product type 

As consumers’ time to spend on household chores and the cost of preparing meals decreases, the online grocery market is increasingly growing at double-digit rates. However, despite the convenience and user-friendliness of this new channel, some factors may hinder the market’s growth. For example, in emerging economies, consumers may not trust online payment methods or lack personalized involvement. However, there are several key drivers of the market. 

The Indian online grocery market is segmented by product type, platform, regional distribution, and competitive landscape. For example, the market is split between mobile apps and desktop websites. The latter is expected to account for the largest share during the forecast period. The mobile apps segment is growing at a rapid pace, largely because of their ease of use, availability of user-friendly interfaces, and integrated payment gateways. 

Breakup by platform 

The online grocery market is experiencing rapid growth due to a variety of factors, including the convenience of online shopping and a rising number of consumers working from home. However, accelerated growth comes with increased operating costs. In addition, concerns over a coronavirus outbreak have heightened consumer dependence on online grocery platforms. However, smart management strategies can help retailers maximize profit while satisfying shoppers. One such strategy is to handle storage and delivery directly. In many instances, online retailers are now handling both the storage and delivery of groceries, which can add to costs and exacerbate problems. 

The U.S. and Europe are the most lucrative markets for online grocery and online marketing software. While both regions account for nearly one-fourth of the overall market, North America is forecast to lead the way with a growth rate of 19.3% between 2020 and 2030. Other potential markets for online grocery include China and India. Currently, only a small portion of Americans use online grocery services, although this number is expected to rise significantly in the coming years.