A new report on the market for global online grocery delivery services predicts it will expand at over 20% CAGR over the next decade.

According to research company and consultancy Fact MR online grocery delivery has become a lifestyle choice during lockdowns and will continue to gain ground even after the pandemic ends.

One of the reasons for the resilience is that key players such as Alibaba Group,, Rakuten, Sainsbury, Target and Walmart have all come up with innovative solutions in terms of improving accessibility to their online services via mobile applications. Discounts have also been fuelling demand in the market. The main downsides are specific to rural areas where the lack of internet access and high transportation and logistics charges pose a challenge.

Among the report’s key takeaways are that:

  • Fruits and vegetables will remain the top-selling segment, followed by frozen foods
  • Japan will emerge as a highly-lucrative market for online delivery solutions and services
  • China is set to spearhead growth in Asia-Pacific
  • Germany’s online grocery deliveries are likely to expand at 23% through 2023
  • The US will be the most lucrative market due to the technical and digital advancements in the market
  • The convenience of smartphone ordering ensured positive growth in Italy and France in 2021, with acceleration expected.

Fact.MR says that the market is fairly fragmented, so key players will be launching a variety of products and services. Numerous food delivery app and e-commerce websites – for example Zomato and Box8 – have also entered the online grocery delivery market intensifying existing competition.

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