NEW YORK, April 10, 2024 /PRNewswire/ — The global online grocery delivery services market size is estimated to grow by USD 652.45 bn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 19.43% during the forecast period. APAC held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 57%.
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Major Players in the Market
Numerous companies are capitalizing on this growing trend by implementing strategic measures such as alliances, partnerships, mergers, and acquisitions. Among the notable players in the cheese based snacks market are:
Albertsons Companies Inc., Alibaba Group Holding Ltd., Amazon.com Inc., Blink Commerce Pvt. Ltd., Brandless Inc., Carrefour SA, Coles Group Ltd., Costco Wholesale Corp., Flipkart Internet Pvt. Ltd., HOFER KG, Innovative Retail Concepts Pvt. Ltd., Maplebear Inc., METRO Cash and Carry India Pvt. Ltd., Ocado Group Plc, Rakuten Group Inc., SPAR International, Target Corp., Tesco Plc, The Stop and Shop Supermarket LLC, Walmart Inc.
Analyst Review
In today’s macro-economic environment, the logistics sector, specifically online grocery delivery services, is experiencing significant growth. Traditional grocery retailers are adapting to the digitization trend, offering full basket-offerings through mobile applications on the internet. Price-conscious consumers, particularly in urban areas, are increasingly relying on these services for their household and grocery items. The current situation is driven by macro-economic factors such as per capita expenses, discretionary spending, and urbanization. Anticipated future changes include advanced solutions like meal kits and investments in expansion strategies. International producers and suppliers are also entering the market, making for a competitive landscape. Online grocery delivery services are not just a current trend but an anticipated future change in the grocery retail industry. The market’s future prospects are promising, with the convenience of smart mobiles and the internet making grocery shopping more accessible than ever before.
Key Market Drivers
The Online Grocery Delivery Services Market has experienced significant growth in the last decade, driven by key market indicators such as increasing internet penetration, urbanization, and rising per capita disposable income in developing countries like China and India. According to survey results, the number of internet users and urban population have been major catalysts for this growth. Forecasting techniques, including the S-curve function and exponential trend smoothing, suggest continued expansion. Macro-economic factors, such as GDP per capita and household & grocery expenses, also play a role. The coronavirus pandemic has further accelerated the trend towards home delivery of fruits, vegetables, dairy products, and frozen foods. Country-specific associations and industry players are investing in advanced solutions like mobile applications and user-friendly websites to meet the demands of affluent consumers. The industry’s turmoil, including profit margin pressures and the current situation, calls for expansion strategies and collaborations with international producers and suppliers. Rising investment requirements and developing technology are anticipated future changes. New laws and regulations will also shape the market’s future prospects.
Challenges and Opportunities
The online grocery delivery services market is witnessing robust growth due to rapid digitization and urbanization, with an increasing number of individual consumers adopting convenient, time-saving options for staple foods and cooking essentials. However, end-users’ perceptions remain a challenge, as they prioritize product quality and freshness over digital convenience. Traffic jams and extended working hours further hinder traditional grocery shopping. Online retailers are addressing these concerns through user-friendly features, payment options, and improved websites and mobile application designs. Faster delivery times, improved logistics, and convenient delivery options are also key differentiators. Analysts predict a wider customer base and revenue share for mobile apps and multiple channels, particularly in the meat and seafood, staple food, and staple meals categories. Social distancing measures have also accelerated the shift towards online shopping. Despite these advancements, physical stores continue to play a role in the customer experience.
The Online Grocery Delivery Services Market is experiencing significant growth due to the increasing demand for functional foods and beverages among health-conscious consumers worldwide. With traditional grocery retailers unable to keep up with this trend, consumers turn to e-commerce platforms for full basket-offerings, meal kits, and quick commerce. Logistics and warehouses play a crucial role in ensuring timely delivery of these products. Macroeconomic factors, such as disposable income, urbanization, and internet connection speed, influence consumer behavior. Price-conscious and discretionary spending consumers prefer B2C enterprises offering user-friendly websites and apps for seamless shopping experiences. Key market indicators include user metrics from surveys, GCS data, and digitization trends. Country-specific associations and GDP per capita impact market penetration. Forecasting techniques like S-curve function and exponential trend smoothing help predict market growth. Urban population and internet users are primary targets for advanced solutions, including meal kit services and home delivery apps. The coronavirus pandemic has further boosted the market, with affluent consumers increasingly relying on food and groceries delivered to their homes. Market leaders like Meituan and other B2C enterprises focus on profit margins by offering a wide range of household and grocery items, including fruits, vegetables, and dairy products. Investments in advanced solutions and digitization continue to drive market expansion.
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Market Overview
The Online Grocery Delivery Services market is experiencing significant growth as more consumers turn to convenience and contactless shopping solutions. Customers can now place orders for their favorite products from the comfort of their homes, with various options for delivery or pick-up. Companies like Amazon Fresh, Walmart Grocery, and Instacart have become major players in this sector, offering a wide range of items from fresh produce to household essentials. Consumers can also benefit from features such as automatic reordering, subscription services, and personalized recommendations. The use of technology, such as artificial intelligence and machine learning, enables these platforms to offer efficient and accurate order fulfillment, ensuring a seamless shopping experience. The COVID-19 pandemic has further accelerated the adoption of online grocery delivery services, making them an essential part of modern life.
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
