Vertical: CFnBBase Year: 2019
Market Size (2019)
$123.79B
Projected (2026)
$281.84B
CAGR (2018–2026)
12.3%
Key Players
10+
The global online grocery market is likely to grow at a significant pace during the forecast period. The surge in promotional activities and discount offers by major players, along with the increasing per capita disposable income, are the key drivers boosting the growth of the global online grocery market. However, the underdeveloped online capabilities of online grocery players are anticipated to restrict the growth of the global market. The increased adoption of advanced technologies is expected to create profitable growth opportunities for online grocery service providers during the forecast period.
The Online Grocery Market market is projected to grow at a CAGR of 12.3% from 2018 to 2026.
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View Subscription PlansOnline grocery services entail the services that either a brick-and-mortar supermarket or grocery store that allows online ordering or a standalone e-commerce service that offers grocery items. There is usually a delivery charge for availing this service.
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View Subscription PlansWantstats analysis is based on interviews with industry experts who offer insight into the market structure, market segmentation, technology assessment, competitive landscape (CL), market penetration, as well as the emerging trends. Besides primary interviews (~80%) and secondary research (~20%), their analysis is based on years of professional expertise in their respective industries. Our analysts also predict where the market will be headed in the next five to ten years by analyzing historical trends and the current market position. Furthermore, the changing trends in segments and categories in each region are studied and estimated based on primary and secondary research.
Extensive primary research was conducted to gain a more in-depth insight into the market and industry performance. For this particular report, we have conducted primary surveys (interviews) with the key level executives (VPs, CEOs, marketing directors, and business development managers, among others) of the major players active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed in the next five years.
Secondary research was mainly used to collect and identify information useful for an extensive, technical, market-oriented, and commercial study of the global online grocery market. It was also used to obtain critical information about major players, market classification, and segmentation according to industry trends, geographical markets, and developments related to the market and technology. For this study, analysts have gathered information from various credible sources such as annual reports, sec filings, journals, white papers, corporate presentations, company websites, international organizations, and paid databases.
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of the overall online grocery market. The key players in the market were identified through secondary research, and their market contributions in different applications across the globe were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to arrive at the final quantitative and qualitative data. This data has been consolidated and detailed inputs and analysis from Wantstats added before being presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for this study.
Base Year
2019
Historical Period
2018 – 2018
Forecast Period
2020 – 2026
Primary Interviews
150+
Historical data (2018–2019) and forecast period (2019–2026)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThe global online grocery market is projected to register a CAGR of 12.61% during the review period. The growth of the market can be attributed to the surge in promotional activities and discount offers by major players along with increasing per capita disposable income. Market players are expected to witness profitable growth opportunities in the global market due to the expansion into untapped markets.
The key players operating in the US wrap market include Amazon.com, Inc. (US), Walmart Inc. (US), The Kroger Co. (US), Albertsons Companies, Inc. (US), Fresh Direct, LLC. (US), ALDI (Germany), ASDA (UK), Auchan SA (France), Royal Ahold Delhaize NV (Netherlands), and TESCO PLC (UK). The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as Amazon.com, Inc., Walmart Inc., The Kroger Co., Albertsons Companies, Inc. and Fresh Direct, LLC. dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are focused on investing in research and development and adopting strategic growth initiatives such as product launches, expansions, and partnership to strengthen their market position and capture a large customer base.
Threat Of New Entrants
The high internet penetration and the increasing adoption rates of online grocery delivery services are significant drivers for new entrants in the global market. To survive in the competitive market, the existing players are focusing on strategic developments, appropriate storage methods, and attractive delivery channels and approaches to keep a check on their customers and outperform their competitors.
Thus, the threat of new entrants in the global online grocery market is expected to be high during the forecast period.
Bargaining Power Of Suppliers
The suppliers include manufacturers, distributors and wholesalers, importers, and independent suppliers operating via online retails. Several raw material suppliers are operating in the global market, indicating that the manufacturers have the liberty to shift between suppliers. The suppliers are vying for an increased share in the global online grocery market as e-tailers consider the switching costs to be low and give more importance to margins.
Uniqueness of Suppliers: The bargaining power of suppliers is a crucial factor in the online grocery industry and determines the strength of the company. The suppliers are unique in terms of sourcing, supplier relationship, and product functionality, creating product differentiation, discounts, and delivery offers.
Therefore, the bargaining power of suppliers in the global online grocery market is expected to be moderate during the forecast period.
Threat Of Substitutes
The global online grocery market faces intense internal competition. The awareness and availability of online platforms are growing owing to the robust marketing strategies employed by the major players. By analyzing these factors, it is identified that there are chances of product substitution at an internal level, due to the availability of multiple options in the global market.
Consumers are willing to pay a premium for quality, convenience, and variety. However, the poor infrastructure and lack of cold storage in the supply chain is a significant deterrent in the market as the freshness of the product is of importance. Poor quality and long delivery times can deter consumers from buying online and result in them shifting to conventional stores.
Hence, the threat of substitutes in the global online grocery market is expected to be high during the forecast period.
Bargaining Power Of Buyers
The presence of several players in the global online grocery market has attracted a wide consumer base. Most of the consumers are well-informed about the various products available in the market. There is an increasing number of players foraying into the market. Additionally, the suppliers and distributors with established distribution networks are potential players that could enter the market. Buyers can easily switch to an e-tailer that offers low prices, on-time delivery, secure payment options, and high-quality products.
Thus, the bargaining power of buyers is expected to be high in the global online grocery market during the forecast period.
Intensity Of Rivalry
The global online grocery market is marked by high competition. Many established players are targeting competitors in terms of quality and price, making the industry competitive, which, in turn, reduces profit margins for all existing firms. The manufacturers are actively promoting their products through advertisements on television, the Internet, and other channels. Market players compete for higher market shares, which creates price wars, advertising battles, and higher quality of customer services. The players in this industry have substantial marketing expenditures in the form of print, media, and discount sales. The concentration ratio, which determines the maximum market share owned by major firms, is used to measure rivalry.
Therefore, the intensity of competitive rivalry in the global online grocery market is expected to be high during the forecast period.
Market estimates by geography (2026)
InsightAsia Pacific leads with $121.58B by 2026.
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View Subscription Plans| REGION | 2018 | 2019 | 2026 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $43.46B | $71.25B | $121.58B | 13.7% | 43% |
| Rest of the World | $2.83B | $4.53B | $7.44B | 12.9% | 3% |
| Europe | $36.79B | $52.45B | $77.63B | 9.8% | 28% |
| North America | $28.05B | $45.34B | $75.19B | 13.1% | 27% |
| Total | $111.12B | $173.57B | $281.84B | 12.3% | 100% |
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Analytical insights on Online Grocery Market covering market dynamics, competitive landscape, and strategic outlook.
The Online Grocery Market market is projected to reach $281.84B by 2026, growing at 12.3% CAGR.
The primary drivers of the growth of the global online grocery market are the increased technological developments, a surge in promotional activities employed by major players, a broader target audience, and increasing per capita disposable incomes. However, the underdeveloped capabilities of online grocery players and product recalls are set to curb the growth of the online grocery industry globally. Nevertheless, the incorporation of newer technologies by key players in the industry is expected to create lucrative opportunities for the players in the global online grocery market.
Several technological developments, such as the rise of automated fulfillment centers and new delivery solutions, facilitate the delivery speed and further help position online stores as quick and convenient solutions. The increasing competition for larger online market shares is expected to result in reduced lowered order sizes for free delivery and innovative solutions for the last-mile network, which is further expected to reduce costs and increase accessibility. A lot of new entrants are setting up their space in this industry by using advanced methods and techniques to lure their customers. For instance, in April 2020, Walmart Inc., in collaboration with Nextdoor, Inc., launched the “Neighbors Helping Neighbors” program to make it easier for neighbors across the country to help one another during the COVID-19 pandemic. With this program, the Nextdoor member can request assistance or offer to help someone with shopping for their essential items at Walmart. Thus, the increasing technological advancements are expected to drive the growth of the global online grocery market during the forecast period.
Technological innovation is one of the crucial factors in measuring the success of online grocery stores. Advancements in freezing technologies and better and faster supply chain solutions have resulted in an increasing demand for fresh and frozen food. Regions with cold climates have been relying on natural food freezing, such as using winter frosts to prepare frozen food. In contrast, in regions with temperate climates where the preservation of ice and snow is difficult, suppliers have adopted artificial cooling methods. Over the last few decades, freezing techniques have improved and have become efficient and more cost-effective. The use of mechanical freezers, cryogenic or flash freezing, and other technologies are developed and used by several key industrial players. Thus, the adoption of advanced technologies is expected to create an opportunity for the players operating in the global online grocery market during the forecast period.
In the online delivery model, various players are pushing for faster and more flexible delivery solutions. To stay competitive in this developing environment, grocery retailers need further to optimize their fulfillment processes, including automated distribution centers. Additionally, innovative solutions for last-mile delivery and third-party delivery are offered by few established players. Owing to the underutilized online capabilities, several players lag in this growing trend of online grocery sales and delivery. Thus, the underutilized online capabilities of the market players are expected to restrict the growth of the global online grocery market during the forecast period.
Although the customer demographics for online grocery remain positive, a significant challenge faced by this industry is the domination of well-established traditional stores, including supermarkets, hypermarkets, convenience stores, and departmental stores. Virtual baskets do not necessarily mirror physical ones. The relationship between the two is often inverse, which, to an extent, decreases the preference rate of customers. Consumers have embraced the idea of buying certain packaged goods online. However, some categories are simply better suited for traditional retail channels. Online grocery has several benefits, but physical stores also have strong key advantages over e-commerce, especially when it comes to fresh foods. Aside from the obvious in-store benefit of fulfilling immediate shopping needs without paying shipping fees, there are compelling sensory experiences that are impossible to replicate online. It is also difficult to match the power of human interaction that physical stores can provide. All these factors are sure to create a challenge for players in the global online grocery market.
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Profiles of 107 companies operating in the Online Grocery Market market, including revenue, employee count, and market positioning where available.
Showing 107 of 107 companies
Company Headquarters: Hertfordshire, UK Founded: 1947 Workforce: ~ 464,505 Company Working: Tesco Plc engages in retailing and retail banking. It operates through segments, namely, the UK and the Republic of Ireland (ROI), Central Europe, Asia, and Tesco Bank. The UK and RoI segment cater to the UK and the Republic of Ireland. The Central Europe segment covers the Czech Republic, Hungary, Poland, and Slovakia. The Asia segment includes Malaysia and Thailand. The Tesco Bank segment involves retail banking and insurance services.
Company Headquarters: Zaandam, Netherlands Founded: 1887 Workforce: ~380,000 Company Working: Royal Ahold Delhaize NV engages in the management and operation of supermarkets and e-commerce businesses. It operates through six segments, namely, the US, the Netherlands, Belgium, Central & Southeastern Europe, Other Retail, and Global Support Office. The US segment includes Stop & Shop, Food Lion, Giant & Martin's, Hannaford, Giant Food, and Peapod. The Netherlands segment consists of Albert Heijn, Etos, Gall & Gall, and bol.com. The Belgium segment handles the Delhaize operations in Belgium and Luxembourg. The Central & Southeastern Europe segment comprises of brands such as Albert, Alfa Beta, Mega Image, and Delhaize Serbia. The Other Retail segment includes the firm's joint ventures. The Global Support Office segment represents global support office operations in the Netherlands, Belgium, Switzerland, and the US.
Company Headquarters: Croix, Lille Métropole, France Founded: 1961 Workforce: ~354,851 Company Working: Auchan SA operates supermarkets and hypermarkets. It offers products and services covering the essential needs of customers. The holding company includes Auchan Retail International; Ceetrus, which operates shopping centers; and Oney, which offers financial services. It operates as Alcampo in Spain, Auchan in Portugal, and Aшан in Russia and Ukraine. It has a direct presence in France, Spain, Portugal, Poland, Romania, Luxembourg, Hungary, China, and Taiwan.
Company Headquarters: Leeds, UK Founded: 1949 Workforce: ~ 165,000 Company Working: ASDA is a retailing company and fully owned subsidiary of Walmart Incorporated. Its store formats include Asda Supercenters, Asda Superstores, Asda Supermarket, Asda Living, George Stores, Asda Essentials, and Asda Petrol. Besides its core supermarkets business, the company also offers a number of other services, including financial services, Asda Money, and a mobile phone provider that uses the existing EE network. Its brand includes Asda Smart Price, Chosen by You, and George clothing. It has over 25 distribution depots across the UK, which distribute across the network of stores.
Company Headquarters: Ohio, US Founded: 1902 Workforce: ~ 435,000 Company Working: The Kroger Co. is one of the largest retailers in across the globe. The company also manufacture and process some of the food for sale under its own brand name. The company has about 2,757 supermarkets under a variety of local banner names, of which 2,270 had pharmacies and 1,567 had fuel centers. The company has only one reportable segment which is retail operations, as due to all the operating divisions having similar economic characteristics with similar long-term financial performance. The company operates only in American region.
Walmart is the world's largest retailer by store count and, until fiscal 2026, by revenue — a $713 billion omnichannel platform serving approximately 280 million customers weekly across more than 10,900 stores in 19 countries. Its structural advantage is a grocery-anchored, high-frequency U.S. store base (68% of net sales) that has been converted into the densest last-mile fulfilment network in American retail: substantially all U.S. stores now offer same-day pickup and delivery, and store-fulfilled delivery is the primary engine of 24% global e-commerce growth. The strategic story of the current cycle is margin-mix transformation. Advertising (up 46% to nearly $6.4 billion in FY2026), membership fees (up 15.5% to $4.4 billion), marketplace and fulfilment services are growing several times faster than merchandise and carry materially higher incremental margins. Under John Furner, who succeeded Doug McMillon as CEO on 1 February 2026, Walmart is positioning as "people-led, tech-powered," with agentic AI (Sparky) as the discovery layer above that ecosystem. --- ### The company's own description (paraphrased from the FY2026 Form 10-K, Item 1) Walmart characterises itself as a people-led, technology-powered omnichannel retailer whose purpose is to help people around the world save money and live better, by offering the opportunity to shop in physical stores, through e-commerce, and to access a widening set of service offerings. Its stated strategy has four pillars: make every day easier for busy families; operate with discipline; sharpen the culture and become more digital; and make trust a competitive advantage. Two pricing doctrines sit underneath: EDLP (everyday low price — items priced low every day so customers need not wait for promotional cycles) and EDLC (everyday low cost — a commitment to expense control so savings can be passed through). The filing describes the ecosystem as "mutually reinforcing pieces" — membership, advertising, marketplace and fulfilment services, and financial services — organised around customers "increasingly seeking convenience." ### Independent characterisation Walmart is best understood today not as a merchant but as a *distribution utility with an attached media and membership business*. Three distinct economic engines operate inside one legal entity: **Engine 1 — Merchandise retail (the volume engine).** Roughly 97% of consolidated revenue is net sales of goods. This is a high-turn, low-margin business: consolidated gross margin of 24.2% and operating margin of 4.2% in FY2026. Within it, grocery is the strategic anchor: $285.5 billion of Walmart U.S. net sales, 59.1% of the U.S. segment. Grocery is not primarily a profit centre — it is a *traffic acquisition mechanism* whose visit frequency creates the data density and delivery route density that the other two engines monetise. **Engine 2 — Commerce services (the margin engine).** Advertising (Walmart Connect in the U.S., plus VIZIO's connected-TV inventory and Flipkart Ads internationally), marketplace commissions, Walmart Fulfillment Services, data and insights products for suppliers, and financial services. Global advertising grew 46% in FY2026 to nearly $6.4 billion and a further 37% in Q1 FY2027. Management attributes operating income growing faster than sales for three consecutive years principally to this mix shift. Critically, advertising revenue is recorded *either* in net sales *or* as a reduction of cost of sales depending on the contract structure, so it flatters gross margin rather than appearing as a clean line item — a disclosure limitation analysts should note. **Engine 3 — Membership (the retention engine).** Sam's Club U.S. (Club at $50/year, Plus at $110/year, add-on cards at $45) and Walmart+ in the U.S., plus Sam's Club China and international membership formats. Worldwide membership fee income rose 15.5% to $4.4 billion in FY2026 and 17.4% in Q1 FY2027. Membership income is near-100% incremental margin and is the single largest contributor to Sam's Club segment operating income. **Revenue model mix (FY2026):** Product sales $706.4bn (99.05% of total revenue); membership and other income $6.75bn (0.95%). This understates the services contribution materially, because advertising, marketplace commission and fulfilment fees are embedded within net sales or within cost of sales rather than in "membership and other income." A truer read: management has repeatedly guided that higher-margin "business mix" contributions — advertising, membership, marketplace, fulfilment services — are the reason operating income can compound faster than the top line. **Value chain position.** Walmart occupies the retail node but has integrated backwards and forwards further than any peer of its size: private brands (Great Value, Equate, Member's Mark, bettergoods, onn., Mainstays, Marketside and roughly a dozen more) give it manufacturing-adjacent margin control; 192 U.S. and 179 non-U.S. distribution facilities plus a private truck fleet give it inbound logistics control; store-fulfilled delivery and a gig driver network (Spark) give it last-mile control; and Walmart Connect/VIZIO give it demand-generation control. The marketplace and Walmart Fulfillment Services invert the model — Walmart becomes the *supplier* of logistics and audience to third-party sellers. **Customer types.** (i) Retail consumers across the income spectrum — management noted in Q4 FY26 continued share gains from households earning above $100,000, while describing below-$50,000 households as "stretched" and managing paycheck to paycheck; (ii) Sam's Club members (individual and business); (iii) suppliers and brands purchasing advertising, data and fulfilment; (iv) third-party marketplace sellers; (v) health-plan payers and PBMs through pharmacy and optical. **End-markets served.** Food and consumables; general merchandise (entertainment, hardlines, fashion, home); health and wellness (pharmacy, OTC, optical, hearing); fuel; digital advertising; e-commerce fulfilment and logistics services; consumer financial services (money orders, prepaid access, money transfers, check cashing, bill payment, certain instalment lending); and, internationally, digital payments (PhonePe) and travel (Cleartrip).
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Historical performance and future projections (2020–2030, USD Billion)
Market Size (USD Mn)
