Increasing Global Demand For Online Grocery Market With Rising CAGR ForecastPosted by Mrudula Anil Karmarkar on January 4th, 2021 The global online grocery market size is expected to reach USD 1.1 trillion by 2027, expanding at a CAGR of 24.8% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. Increasing number of smartphones, their use, and rising number of smartphone users are anticipated to boost the market growth over the forecast period. Along with these factors, recent pandemic of corona virus is another major contributor of rising number of online grocery shoppers across the globe. Due to the Covid19 pandemic consumers are preferring purchasing groceries online and stocking up for emergencies. Online grocery delivery platforms are trying to ensure a smooth and fast shopping experience for their customers on the websites and apps. Will they be able to effectively cater to the demand amidst the restrictions and tackle competition as their brick and mortar counterparts venture into the online market? We are continuously monitoring the market dynamics and trying to assess the impact of Covid19 on the demand. The report will account for Covid-19 as a key market contributor. Increasing adoption of online shopping is expected to fuel the market growth during the forecast period. 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 2027. 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 over the forecast period. 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. Further key findings from the study suggest:
The global online grocery market size was valued at USD 189.81 billion in 2020 and is projected to register a CAGR of 24.8% from 2020 to 2027. Rising disposable income and people’s increasing inclination toward comfort are anticipated to drive the market over the forecast period. Online grocery shopping is also gaining popularity among customers owing to the 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 market over the long term. The shift toward online grocery shopping from traditional shopping methods is fueling market growth. According to the United Nations Conference on Trade and Development, 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. Rising number of smartphone users is expected to propel the market growth over the forecast period. Smartphones are widely used for online shopping owing to their ease of operation as they allow users to buy products over mobile applications. Major smartphone manufacturers are focusing on increasing their smartphone sales and are investing heavily in R&D to manufacture technologically advanced smartphones. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/7162/ibb The market is highly fragmented in nature and is characterized by a high degree of competition between major players. Some of the key players operating in the market are Walmart; JD.com, Inc.; Alibaba.com; Amazon.com, Inc.; and Rakuten. These companies are focusing on strengthening their market presence by adopting inorganic strategies such as acquisitions, mergers, partnerships, and collaborations. For instance, in 2018, Walmart acquired 77% stake in Flipkart for USD 16 billion to expand its business in India. Furthermore, Walmart announced its partnership with Rakuten in 2018, to launch its first e-commerce store in Japan in order to revamp its business in Asia. Additionally, in order to gain a competitive advantage in the market, companies are focusing on providing additional features to their solutions to leverage their product offerings and cater to the end-user requirements. Grand View Research has segmented the global online grocery market on the basis of product type: Online Grocery Product Type Outlook (Revenue, USD Billion, 2016 - 2027)
About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare. For More Information:www.grandviewresearch.com Like it? Share it! More by this author |