According to Technavio, the global online grocery delivery services market is projected to expand by USD1.12 trillion from 2024-2028, with an estimated CAGR of 25.2% during this period.
The market’s growth is primarily driven by the rising popularity of e-commerce platforms, with a noticeable trend towards functional foods and beverages. However, consumer perceptions of online grocery shopping remain a challenge.
Recent years have seen substantial growth in online grocery delivery services, fueled by advancements in logistics and an increase in warehouse facilities. Traditional retailers are facing intense competition from B2C companies, as consumers—particularly those who are price-sensitive or have discretionary income—prefer the convenience of comprehensive grocery offerings and meal kits.
Quick commerce and convenience stores, exemplified by companies like Meituan, are gaining traction. Market research, including user surveys, indicates a strong preference for home delivery services via mobile apps and websites, especially in urban areas with high-speed internet access. Growth forecasts using methods such as S-curve functions and exponential trend smoothing suggest continued expansion.
Key macroeconomic factors influencing the market include GDP per capita, internet penetration, urbanization rates, and household grocery expenditure. The COVID-19 pandemic has accelerated digitization in this sector.
To maintain competitive profit margins, companies will need to invest in advanced technologies, including user-friendly mobile apps and websites. The demand for online grocery delivery services is expected to be sustained by affluent urban consumers.
Find out more at: https://www.technavio.com