Global Food E-Commerce

Report Overview

This report covers the scope, size, and growth of the global food e-commerce (i.e., online grocery, or e-grocery) market including key trends in major regions and national markets. Historical data are provided for 2013 and 2018 with forecasts for 2023 and 2028. Year by year historical market volatility is also addressed. Data are provided in dollar value. Also included is an analysis of the industry key players and their competitive strategies.

Food e-commerce sales are broken out for the following regions and countries:

• North America (US and Canada)
• Western & Eastern Europe (UK, Germany, and France)
• Asia/Pacific (China, Japan, South Korea, India)
• Latin America
• Africa/Mideast

Consumers Worldwide are Increasingly Using Smartphones to Shop for Groceries

Global food e-commerce sales are forecast to nearly triple to 2023, rising 24% per year to $321 billion. Market growth will be driven by increasing comfort among existing online shoppers with making routine grocery purchases online; greater penetration of broadband internet in rural and remote areas that previously only had access to dial-up; growing acceptance of, and investment in, home delivery, click-and-collect, and drive order fulfilment formats in an increasingly omnichannel retail environment.

Key Findings in the Global Food E-Commerce Study:

China, the US, and Japan Lead in Online Food Shopping

China is by far the global leader in food e-commerce sales, accounting for nearly 40% of global revenues in 2018. The country boasts a rapidly expanding middle class that is more likely to shop online – including for food and beverages. Internet access and smartphone use are also relatively high in China, especially in urban centers where shoppers are more likely to pursue click-and-collect services or be able to choose home delivery options.

As consumers in the US and Japan have become increasingly familiar with online shopping, grocery vendors have ramped up investment in web-based retailing and fulfillment capabilities, including through the installation of curbside pickup locations, construction of dark stores, and launch of express home delivery services. In the US, retailers such as Walmart and Kroger increased online pickup and delivery investments in the wake of Amazon’s acquisition of Whole Foods in 2017.

Retailers Ramp Up Same-Day Delivery Services Across Major Cities

Online grocery retailers worldwide are increasingly offering same-day delivery services, enticing shoppers who want quick access to fresh produce, meats, and other food items. Retailers are targeting these services to residents of densely populated urban areas, as consumers in these areas are less likely to own vehicles. Companies that already offer same-day home delivery - including Alibaba, Carrefour, Kroger, and Walmart - are working to expand their service areas and reach more consumers using advanced order-fulfillment software, new infrastructure (e.g., dark stores), driverless vehicles, and partnerships with grocery delivery services.

Acquisitions and Strategic Partnerships Are Key Competitive Strategies for E-Grocery Players

Merger and acquisition activity is high and cooperative agreements are common in the rapidly growing online grocery market. Such transactions and partnerships are key strategies for participants looking to expand operations, reach new customers, increase product offerings, gain access to advanced logistics technologies, and solve last-mile delivery challenges.

Report Coverage

This report covers the scope, size, and growth of the global food e-commerce (i.e., online grocery, or e-grocery) market including key trends in major regions and national markets. Historical data are provided for 2013 and 2018 with forecasts for 2023 and 2028. Year by year historical market volatility is also addressed. Data are provided in dollar value. Also included is an analysis of the industry key players and their competitive strategies.

Food e-commerce sales are broken out for the following regions and countries:

• North America (US and Canada)
• Western & Eastern Europe (UK, Germany, and France)
• Asia/Pacific (China, Japan, South Korea, India)
• Latin America
• Africa/Mideast