Online Grocery Delivery Services Market
Online Grocery Delivery Services Market By Product (Online Grocery Delivery Services for Fruits, Vegetables, Dairy Products, Fresh Products, Frozen Foods and Other Food Products), By Region - Global Market Insights 2021 to 2031
Online Grocery Delivery Services Market Outlook
With demand for online grocery delivery services spiraling upward, the industry is predicted to expand at over 20% CAGR through 2031, creating new avenues for market players. As people are getting more inclined towards purchasing from the comfort of their homes, requirement for online grocery services is expected to grow significantly over the coming years. Furthermore, COVID-19 impact on online grocery delivery services was that it increased industry value due to adoption of new social norms and shifted purchasing patterns.
The latest report on ‘online grocery delivery services’ by Fact.MR depicts global industry insights and driving & restraining factors for the forecast period of 2021 to 2031. The report also analyzes regional trends, growth scope, and upcoming opportunities for market players around the world.
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Historical Trends Vs. Future Outlook on Online Grocery Delivery Services
Online grocery delivery services have gradually become popular over the past decade owing to convenience and ease of access. While digitization and increasing usage of the Internet and smart mobiles indirectly catered to demand growth, macro-economic factors such as increase in per capita expenses on household & grocery items, rising urbanization, and others further helped industry players capture low-hanging opportunities. According to Fact.MR, overall industry outlook for grocery delivery and pickup services has remained positive during the last 5 years from 2016 to 2020.
The online grocery delivery services market is flourishing on increasing investments by key players in developing more advanced and innovative solutions such as mobile applications and user-friendly websites. Additionally, the outbreak of the coronavirus pandemic taken digitization one step forward, which will benefit the market even in post-pandemic years, paving new paths for key players in this space. The market is poised to surge ahead at a CAGR of over 20% through 2031.
How is Rising Preference for Online Shopping Aiding Market Expansion?
Rise in preference for online shopping is drastically helping in raising the profit margins of online grocery service providers. More people are getting drawn towards numerous advantages of online shopping, such as-
- Ease of access
- Suitable for new social norms amidst the pandemic
- User friendly features, interfaces, and payment options
- Additional discounts and lucrative subscription plans
As more industry players are developing a variety of grocery delivery apps and websites along with cost-effective delivery services, the industry is expected to expand substantially over the coming years.
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What are the Key Challenges Faced by Online Grocery Delivery Service Providers?
Despite experiencing growing popularity there are a few restraints for online grocery delivery service providers, such as-
- Still a significant portion of the population don’t have access to the Internet or mobiles to get such services, especially in rural areas
- Online grocery delivery services often require additional costs due to logistics or transition charges
- Many consumers are inclined to get fresh fruits and vegetables directly from vendors instead from online outlets
However, overall advantages of online grocery delivery services outpace these few restraining factors.
Why are Key Online Grocery Delivery Services Industry Players Attracted to the United States?
The United States is the main contributor to North America’s online grocery delivery services, and is anticipated to fuel sales further over the forecast period. Technical and digital advancements coupled with changing lifestyles of consumers are spurring demand for online grocery delivery services in the country.
As per data revealed by the Government of the U.S., more than 50% adults in the U.S. prefer to order food and groceries online. As per its report, the online food delivery industry’s revenue surpassed US$ 25 billion in 2020. Such figures will only grow further with changing trends, which, in turn, will widen the growth scope of the U.S. online grocery delivery market.
Why is Germany in the Limelight for Online Grocery Delivery Service Providers?
Backed by well-developed manufacturing hubs and advanced online grocery delivery infrastructure, Germany is predicted to lead Europe as far as online grocery delivery services are concerned.
As stated in a report titled “Germany: Expanding Grocery E-Retail Market”, published by USDA on 8th August 2019, Germany holds the largest food & beverage industry in the European Union (EU), and is home to more than 83 million of the world’s most affluent consumers. As per the report, the online grocery industry in Germany is quite progressive and likely to expand at 23.2% CAGR through 2023. This explains why online grocery delivery service providers are emphasizing on Germany to gain more revenue and profits.
Will China Remain Dominant in the Global Online Grocery Delivery Services Market?
China has been leading in the major contributor to the global online grocery delivery market - Asia Pacific, since the past decade. Rapidly evolving grocery industry and rise in inclination towards online purchasing are fueling online sales in China.
As per data revealed by the Government of China, China’s retail sector recorded US$ 5.4 trillion in sales revenue in 2017, and this is projected to rise further in the foreseeable future. As per its report, China is set to become the largest grocery industry in the world by 2025. This is why stakeholders are eyeing China in order to increase their revenues.
What’s Fueling Demand for Online Delivery Services in Japan?
Japan has emerged as another highly lucrative market for online grocery delivery solutions and services. High preference for home delivery and a flurry of apps and websites to order groceries online are catering to industry growth in the country.
According to a report published by the Export Government on 6th September 2019, Japan’s e-Commerce industry is the third-largest and one of the fastest--growing industries in the world. As stated in the report, with Internet penetration estimated at 93.3% of the population, Japan’s online delivery and other services industry is highly likely to grow further. This implies huge growth scope awaiting online grocery service providers in the country.
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Which Product is Bolstering Demand for Online Grocery Delivery Services?
Presently, fruits & vegetables are leading online grocery delivery services and are predicted to maintain this lead through 2031. As fruits & vegetables are the most sought-after grocery products, irrespective of the type of end user, this segment is considerably fueling sales in the industry.
Other key segments in terms of product that are complementing the growth of online grocery delivery services are dairy products, fresh produces, frozen foods, and others.
The global online grocery delivery services market is fragmented and thriving on key players. In order to secure their leading positions, key industry players are launching a wider variety of services. For instance,
- Target Corp. launched its new range of online grocery delivery services such as Contactless Drive-Up Services for Grocery Delivery, Same Day Grocery Delivery Services, and others a couple of years back.
- Rakuten Inc. and Walmart Inc. partnered in November 2018 to launch grocery delivery service in Japan, in order to increase their sales footprint.
Historical Data Available for
USD Million for Value
Key Regions Covered
Key Countries Covered
Key Segments Covered
Key Companies Profiled
Market Segmentation by Category
By Product :
- Online Grocery Delivery Services for Fruits
- Online Grocery Delivery Services for Vegetables
- Online Grocery Delivery Services for Dairy Products
- Online Grocery Delivery Services for Fresh Products
- Online Grocery Delivery Services for Frozen Foods
- Online Grocery Delivery Services for Other Food Products
By Region :
- North America
- Latin America
- Middle East and Africa (MEA)
- East Asia
- South Asia
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