Digital Grocery Sales Market Size, Share, Growth, and Industry Analysis, By Type (Packaged Foods and Fresh Foods), By Application (Personal Shoppers and Business Customers) and Regional Insights and Forecast to 2032

Updated On: 10 June 2024

DIGITAL GROCERY SALES MARKET REPORT OVERVIEW

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The global Digital Grocery Sales market size expanded rapidly in 2022 and will grow substantially by 2029, exhibiting a prodigious CAGR during the forecast period.

The digital grocery income market is where people purchase groceries online using computers or phones. Instead of going to a physical store, they order items such as fruits, vegetables, and different foodstuffs through websites or apps. In this manner, clients can shop with ease from home and have their groceries delivered to their doorstep. It's becoming extra famous as it saves time and effort. Plus, it gives a wide range of picks and, now and again even reductions. Digital grocery sales are changing the way humans keep meals, making it less difficult and greater handy than ever before.

COVID-19 Impact: Market Growth enhanced by Pandemic due to Acceleration of Digital Transformation

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The digital grocery business saw significant changes as a result of COVID-19. Due to safety regulations, the supply side of grocery manufacturing became more difficult. To protect employees, factories were forced to shut or operate more slowly. The stringent border regulations made it difficult to move groceries from one location to another. As a result, groceries took longer to get to their destination. Online food purchasing experienced delays and occasionally shortages as a result of these issues. Orders took longer to process, and occasionally certain items were out of stock. The supply chain for goods from producer to consumer was severely disrupted by COVID-19.

LATEST TRENDS

"Automation and AI revolutionize FPI for efficiency and accuracy"

In the US, a growing percentage of consumers—roughly 30%—frequently shop for food online. This cohort of habitual internet shoppers is critical to the expansion of digital food sales. More businesses are concentrating on enhancing their online grocery offerings as this trend continues. They're adding more alternatives for delivery and pickup along with improving the usability of websites and apps. In an effort to draw in and retain these loyal customers, subscription services and loyalty programmes are also becoming more popular. Essentially, the movement revolves around improving the convenience and appeal of online grocery shopping for consumers.

DIGITAL GROCERY SALES MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into packaged foods and fresh foods

• Packaged Foods: This segment consists of non-perishable objects like canned goods, snacks, drinks, and different shelf-solid merchandise appropriate for lengthy-time period storage.

• Fresh Foods: This category encompasses perishable items such as fruits, vegetables, dairy products, meat, and seafood that require refrigeration or immediate consumption.

By Application

Based on application the global market can be categorized into personal shoppers and business customers

• Personal Shoppers: This category refers to individual consumers who purchase groceries for their own household consumption through online platforms or apps.

• Business Customers: This segment includes businesses such as restaurants, cafes, hotels, and catering services that procure groceries and food supplies in bulk for commercial purposes.

DRIVING FACTORS

"Convenience, broader offerings and enhanced customer satisfaction increased demand"

The boom of the digital grocery marketplace stems from evolving client behavior, substantially pushed by the benefits provided through online purchasing. With the capacity to browse and buy groceries from the comfort of their homes, purchasers' expectations have shifted, favoring comfort and ease of entry. This shift was accelerated in the course of the COVID-19 pandemic, as lockdowns and safety worries brought on a fast migration to online channels. In superior online markets like the United Kingdom, the Netherlands, and France, where online grocery shopping was already properly hooked up, its proportion of the marketplace significantly expanded, from 8% to 12% in 2021. This increase was in addition fueled by the growth of services, which included a wider variety of products and progressed transport alternatives, which improved purchaser pleasure. As purchasers continue to prioritize convenience and safety, the digital grocery marketplace is poised for sustained growth.

"Efficient scale operations and appealing consumer offers drive market growth"

It is anticipated that the rise of grocery shopping online will center on scale efficiencies, where larger platforms can operate more cost-effectively and efficiently by making use of economies of scale. Their ability to achieve scale efficiencies allows them to provide competitive pricing and make infrastructural investments to improve their services, including expedited shipping choices and enhanced customer assistance. Personalized advice, competitive pricing methods, and winning consumer offers all contribute to growth by drawing in and keeping clients. Platforms that provide personalized suggestions based on user behavior and tastes, along with deals and promotions that deliver good value, are what entice users. Platforms that can successfully take advantage of scale efficiencies and provide appealing customer offers are likely to see steady development and success in the market as online grocery shopping continues to change.

RESTRAINING FACTORS

"Competition from emerging non-destructive testing methods decreases demand"

The reasons for the downturn in the global digital grocery sector are the maturity and saturation of some markets. There isn't much room for additional growth in these markets because the majority of early adopters have already switched to internet shopping. when a result, when the market gets older, growth rates gradually decline. Since a large percentage of prospective customers already buy for groceries online, there are fewer new customers to draw in, which slows down the growth of the market as a whole. Additionally, in saturated markets, opposition amongst present gamers intensifies, making it challenging for brand new entrants to gain traction and for hooked up businesses to preserve boom momentum. Thus, market saturation and adulthood contribute to the decline in the virtual grocery market because it turns into more and more hard to force widespread will increase in sales and marketplace share.

DIGITAL GROCERY SALES  MARKET REGIONAL INSIGHTS

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"Asia Pacific is leading the market because of India's rapid growth in online grocery"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Asia Pacific is leading the market because of India's rapid growth in online grocery, driven by factors like urbanization and a tech-savvy population. An important issue is the notable rise in online grocery shopping in India, which may be attributed to factors such as urbanisation and a tech-savvy populace. Globally, the epidemic hastened the transition to internet purchasing, with programmes like no-contact delivery increasing customer confidence. Further using the popularity of online grocery shopping in India are the country's rising internet penetration and the accessibility of moderately priced smartphones, which attraction to customers searching out smooth and personalised shopping studies. Further reinforcing Asia-Pacific's dominant role inside the industry is the place's younger, tech-savvy populace, which embraces online systems and prefers online grocery purchasing because of increased disposable earning and traumatic existence.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Digital Grocery Sales  market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Digital Grocery Sales  Markets, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Walmart (Arkansas)
• Amazon (Virginia)
• Kroger (Ohio)
• FreshDirect (New York)
• Target (Minnesota)
• Tesco (U.K)
• Alibaba (China)
• Carrefour (France)
• ALDI (Germany)
• Coles Online (Australia)
• BigBasket (India)

INDUSTRIAL DEVELOPMENT

March 2024:In March 2024, Flipkart, a prominent e-trade player in India, raised a great investment round of $3.6 billion, resulting in a valuation bounce to $37 billion. This considerable funding highlights the continuing boom and ability of the virtual grocery quarter. The infusion of capital is expected to force further innovation, enlargement, and aggressive dynamics inside the marketplace. Flipkart's funding underscores the confidence of traders in the digital grocery segment, signaling a persevering push closer to modernizing and enhancing the web buying experience for consumers. This improvement marks a widespread milestone in the evolution of the digital grocery marketplace, promising exciting advancements and possibilities ahead.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.