Online grocery shopping is gaining popularity among customers owing to growing preference for a hassle-free shopping experience online. Furthermore, the outbreak of COVID-19 has led to an increase in the number of customers buying grocery online in order to avoid going to department stores and limit their social contacts. Although the impact of coronavirus has caused an upsurge in online grocery shopping across the world only recently, it is expected to change the consumers’ buying behavior and positively impact the online grocery market over the long term.
The shift toward online grocery shopping from traditional shopping methods is fueling the market growth. According to the United Nations Conference on Trade and Development, the global e-commerce sales reached USD 29 trillion in 2017. Furthermore, the total number of online shoppers worldwide reached 1.34 billion as compared to 1.20 billion in 2016. This number is bound to rise owing to technological developments that have led to the adoption of online platforms by various retailers as well as rising disposable income among people in developing economies.
Online Grocery Industry Growth Report, 2020-2027
The global online grocery market size was valued at USD 189.81 billion in 2019 and is projected to register a CAGR of…
Increasing number of smartphones, their use, and rising number of smartphone users are anticipated to boost the market growth. Along with these factors, recent pandemic of corona virus is another major contributor of rising number of online grocery shoppers across the globe.
Increasing adoption of online shopping is expected to fuel the market growth. Shopping convenience and better discounts are the primary reasons that have led people to shift from traditional shopping to online shopping. Developing countries have witnessed a notable rise in the number of online shoppers in recent years. According to the India Brand Equity Foundation (IBEF), the number of online shoppers in India was around 120 million in 2018 and is estimated to reach 220 million by 2025. This growing trend and surge in the number of shoppers have developed a huge potential for the market growth.
Security concerns among customers and lack of physical evidence are the major factors that impede the market growth. However, the adoption of Internet of things (IoT) is expected to open new avenues for the online grocery market. IoT helps e-commerce organizations maintain inventory by using IoT enabled devices within the network. IoT provides real-time data and helps retailers analyze the demand for several products in different regions.