The Grocery Delivery market worldwide is set to achieve a staggering revenue of €719.30bn by the year 2024.
Furthermore, this market is expected to display a robust compound annual growth rate (CAGR) of 12.81% between 2024 and 2028, resulting in a projected market volume of €1,165.00bn by 2028.
Among the various segments within this market, Retail Delivery emerges as the largest, with a projected market volume of €547.60bn in 2024.
In a global context, it is worth noting that in China is anticipated to generate the highest revenue, amounting to €243,200.00m in the same year.
When considering the average revenue per user (ARPU) in the Grocery Delivery market, it is forecasted to reach €461.80 in 2024.
Moreover, the number of users within this market is expected to reach 2,103.0m users by the year 2028.
In the United States, the demand for grocery delivery has skyrocketed as consumers prioritize convenience and safety amid the COVID-19 pandemic.
The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.
Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).
Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.
Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)
Driven by COVID-19 lockdowns, Online Grocery Delivery demand increased rapidly with many new start-ups and established retailers fighting to respond, signaling a landmark year in 2021. Traditional grocery retailers quickly set up logistics, warehouses, and online sales channels for customers to be able to conveniently purchase their daily needs and have them delivered to their doorstep. This growth will slow down in 2022 due to the uncertain macroeconomic environment causing consumers to be more price-conscious and cut out discretionary spending.
Traditional retailers have remained the full basket-offerings option for both online and offline. Players such as Walmart, REWE, Ocado, and Tesco have a large assortment with same-day, scheduled delivery. Consumers are turning to Meal Kits as a replacement for these offerings. Quick Commerce is replacing the convenience stores concept with smaller product offerings, focused on top-up and confectionery items.
China is by far the leader of the Online Grocery Delivery segment due to the mature Online Food Delivery market with the most established companies using existing logistics systems and a strong customer base to enhance their product offerings. For example, Meituan has a well-established logistics operation to be able to deliver groceries in under 20 minutes.
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.
Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.