North America Online Grocery Delivery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Online Grocery Delivery Market Analysis
The North American online grocery delivery market is expected to record a CAGR of 10.0% over the forecast period. The growing population, technological advancements, ongoing urbanization, and a paradigm shift in consumer purchasing behaviors are pushing the demand for grocery shopping via online applications and websites, driving growth opportunities in the market.
- Due to health benefits, functional foods and beverages are rapidly growing and driving the North American online grocery delivery market. For instance, Instacart expanded its footprint across Quebec, increasing same-day delivery availability to 90% of Canadian households.
- Key players in the online grocery delivery market are implementing various strategies, such as partnerships, mergers and acquisitions, strategic alliances, product/service launches, and geographical expansion, to enhance their presence in the market. For instance, Instacart, North America's premier online grocery marketplace, acquired Caper AI, a leading AI-powered shopping cart and checkout technology platform. This acquisition expands Instacart's comprehensive retailer enablement platform, which currently spans the Instacart marketplace. These robust enterprise services power the e-commerce solutions for many top grocers, fulfillment technology to support delivery and pickup capabilities, last-mile delivery, and much more. With this purchase, Instacart intends to assist merchants in unifying their clients' in-store and online purchasing experiences, boosting their companies regardless of how customers shop.
- With the help of advanced technology, the home delivery option is expected to bring new growth opportunities for the online grocery delivery market over the next five years. For instance, Amazon.com Inc. intends to impose fees on online buyers for grocery orders less than USD 150, highlighting the challenging economics of delivering food to customers' doorsteps.
- Consumer shopping habits were altered as a result of the COVID-19 pandemic. Consumers have expanded their use of online grocery delivery systems, offering various market growth prospects over the next five years. For instance, Uber introduced online groceries, first making the service available in 19 locations across Latin America and Canada. Customers in Toronto and Montreal may use the Uber app to order from store partners such as Walmart, Metro, Costco, and Rexall.
North America Online Grocery Delivery Market Trends
This section covers the major market trends shaping the North America Online Grocery Delivery Market according to our research experts:
Growing Demand for Super Fast Delivery
- The growing construction of new grocery stores would create new opportunities for the online grocery delivery market to provide super-fast delivery services over the next five years. For instance, Instacart introduced new features across the Instacart App designed to make online grocery shopping more affordable.
- Government and private investments are expected to drive the online grocery delivery market's growth over the next five years. For instance, Walmart Canada has a USD 3.5 billion investment plan over the next five years, targeted at generating considerable growth and making the online and in-store shopping experience easier, quicker, and more convenient for Walmart consumers.
- According to the latest Food and Beverage Sector Report from Edge Retail Insight, Amazon's online edible grocery sales are projected to increase to USD 26.7 billion worldwide in 2026 from USD 14.5 billion in 2021, recording a CAGR of 13%. Fresh grocery delivery is rapidly expanding and playing a significant role in the market. It helps clients receive fresh grocery products in a quicker time.
- Key market players, such as Amazon Fresh and Walmart Inc., play a significant role in the rapid adoption of super-fast delivery services. For instance, Metro, a Canadian grocery and pharmacy company, expanded its collaboration with Instacart. Customers may order from the retailer's Adonis banner and bargain formats Super C and Food Basics with delivery service in an hour.
United States is Expected to Be the Fastest-growing Country
- Various grocery delivery choices, such as same-day or rapid delivery and click & collect, remain unique for market growth. Online grocery delivery service providers in the United States provide contactless and next-day or same-day deliveries. This trend may drive small-scale grocers to collaborate with third-party service providers like Instacart to enter the industry. For instance, Instacart, a wholly owned subsidiary of the ODP Corporation, offers same-day delivery from over 1,000 Office Depot and OfficeMax stores in the United States.
- Online grocery delivery services have increased in recent years. Key players in the market are expanding their retail stores to offer online grocery delivery services across the United States. For instance, Instacart collaborated with 7-Eleven, the world's largest convenience retailer, to nearly 4,000 new stores nationwide. With this growth, Instacart now delivers to about 6,000 7-Eleven locations, reaching almost 60 million US households.
- The online grocery vendors are offering coupons and special discounts, which would bring new growth opportunities across the United States. Instacart launched "Priority Delivery," a new experience that enables faster grocery delivery for consumers in the United States and Canada. Customers in the country's major cities now have access to grocery delivery in as short as 30 minutes.
- The subscription-based services are most engaged to customers driving the market and increasing online grocery delivery orders. Walmart plans to employ over 3,000 delivery drivers in the United States and construct an all-electric delivery van fleet to serve home grocery delivery service. Such investments would create new growth opportunities for subscription-based online grocery delivery services.
North America Online Grocery Delivery Industry Overview
With consumer preferences changing rapidly, the North American online grocery delivery market is highly competitive and attracts huge investments. Due to the huge growth potential, the market is moving toward fragmentation due to new entrants. The service providers are engaging in partnerships to promote product innovation.
- January 2022 - Instacart expanded its partnership with Michaels, the largest arts and crafts retailer, to launch same-day delivery from more than 100 Michaels stores across Canada.
- March 2022 -Walmart Canada announced an investment of over USD118 million in constructing a new high-tech sortable fulfillment center in Rocky View County, Alberta, just outside of Calgary. The company's investment is intended to enhance Walmart consumers' online and in-store shopping experience to be more accessible, faster, and more convenient. The retailer intends to invest in continued growth in Alberta and across Canada.
North America Online Grocery Delivery Market Leaders
Albertsons Companies Inc.
SPAR International
Walmart Inc.
Instacart
Amazon Fresh
*Disclaimer: Major Players sorted in no particular order
North America Online Grocery Delivery Market News
- January 2023 - SPAR extended its operations in Latvia by launching a new store in Rzekne. The 265 sq. m neighborhood shop has everything required for everyday living, including a bakery and a fresh meat sales section.
- September 2022 - Instacart, a significant grocery technology business in North America, announced Connected Stores, a collection of six new Instacart Platform technologies that stack on top of current products, assisting grocers in combining the best of online ordering with in-store shopping for consumers.
- May 2022 - Instacart, a premier retail enablement business in North America, collaborated with over 10 additional retailers to expand same-day delivery across the country, including food and pharmacy major Metro Inc., discount retailer Giant Tiger, specialty grocer Galleria Supermarket, and others. Following its partnership with Metro, Instacart is working with Canada's top five groceries, including Costco, Loblaws, and Walmart. Instacart offers same-day delivery to over 90% of Canadian households across all ten provinces.
North America Online Grocery Delivery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Subscription Services are Driving Market Growth
5.1.2 Home Delivery is Expected to Drive New Growth Opportunities for the Market
5.2 Market Restraints
5.2.1 Inefficient Delivery Management
6. MARKET SEGMENTATION
6.1 By Product Type
6.1.1 Retail Delivery
6.1.2 Quick Commerce
6.1.3 Meal Kit Delivery
6.2 By Country
6.2.1 United States
6.2.2 Canda
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Albertsons Companies Inc.
7.1.2 Amazon Fresh
7.1.3 SPAR International
7.1.4 Walmart Inc.
7.1.5 FreshDirect
7.1.6 Shipt
7.1.7 Thrive Market
7.1.8 Peapod
7.1.9 Instacart
7.1.10 Longos
- *List Not Exhaustive
North America Online Grocery Delivery Industry Segmentation
Online grocery shopping is a way to buy food and other necessities using a web-based shopping service. People can use online shopping methods to purchase these items online.
North America's online grocery delivery market is segmented by product type (retail delivery, quick commerce, meal kit delivery) and country (United States, Canada).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Product Type | |
| Retail Delivery | |
| Quick Commerce | |
| Meal Kit Delivery |
| By Country | |
| United States | |
| Canda |
North America Online Grocery Delivery Market Research FAQs
What is the current North America Online Grocery Delivery Market size?
The North America Online Grocery Delivery Market is projected to register a CAGR of 10% during the forecast period (2024-2029)
Who are the key players in North America Online Grocery Delivery Market?
Albertsons Companies Inc., SPAR International, Walmart Inc., Instacart and Amazon Fresh are the major companies operating in the North America Online Grocery Delivery Market.
What years does this North America Online Grocery Delivery Market cover?
The report covers the North America Online Grocery Delivery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Online Grocery Delivery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Online Grocery Delivery Industry Report
Statistics for the 2024 North America Online Grocery Delivery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Online Grocery Delivery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
