Global Hyperlocal Grocery Delivery Market Overview
Hyperlocal Grocery Delivery Market Size was estimated at 16.68 (USD Billion) in 2022. The Hyperlocal Grocery Delivery Market Industry is expected to grow from 18.61(USD Billion) in 2023 to 50.0 (USD Billion) by 2032. The Hyperlocal Grocery Delivery Market CAGR (growth rate) is expected to be around 11.6% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Hyperlocal Grocery Delivery Market Trends Highlighted
The rise of time-saving services, particularly hyperlocal grocery delivery services, can be attributed to the growing demand from consumers. The evolution of the market has seen that an order can be delivered within hours, with a majority of consumers taking to the satisfaction of having groceries brought to them. Accordingly, the market for hyperlocal grocery delivery is expected to grow at an exponential rate over similar years.
Faster-than-expected growth has been catalyzed largely by the growth of e-commerce and the ubiquitous penetration of mobile technology. There is a shift of attitude among users as they love to do their shopping online. Grocery home delivery is one such benefit that stands out. In addition, the growth of hyper-local delivery services is also fuelled by the increasing number of high-density urban populations, where consumers expect their grocery delivery in a very short time.
In terms of hyperlocal grocery delivery, recent trends are third-party grocery delivery apps, artificial intelligence (AI) and machine learning (ML) for improved delivery and sustainable delivery methods. More of such trends are expected since the market will always evolve and eventually have an impact on the consumer of hyperlocal grocery delivery services in positive ways.
Hyperlocal Grocery Delivery Market Drivers
Increasing Adoption of Online Grocery Shopping
Introduction The hyperlocal grocery delivery market has been witnessing significant growth in recent years. This growth can be attributed to the increasing adoption of online grocery shopping. The aim of this paper is to investigate the role of online grocery shopping in driving the growth of the hyperlocal grocery delivery market. Discussion One of the main factors driving the hyperlocal grocery delivery market is the increasing adoption of online grocery shopping.There are several reasons why consumers are increasingly using online platforms for grocery shopping. One of the main reasons is the convenience and time-saving benefits of online shopping. With the busy lifestyles of people today, it is often challenging to find time to go to the store and buy groceries. Online shopping offers a simple and easy way to browse the complete range of products from a store and place an order within a few minutes. In addition, the rise of e-commerce platforms has made it very easy for people to order groceries online and have them delivered to their homes.In addition, the benefits of online shopping, such as better prices and discounts, are also leading to an increasing shift in the grocery market towards online platforms. Since the online grocery market is expected to grow in the coming years, it is likely that the hyperlocal grocery delivery market will also experience significant growth.
Rising Demand for Fresh and Quality Products
Shoppers are starting to care more about their health with every passing day. They are asking for fresh food of superior quality. The market is likely to expand because hyperlocal delivery services can join up with farmers from the neighborhood and sell high-quality farmed perishable products to their customers.
Growing Penetration of Smart Devices and Internet Connectivity
The increasing penetration of smart devices and internet connectivity is another key driver of the hyperlocal grocery delivery market. Consumers are increasingly using their smartphones and tablets to order groceries online. This trend is expected to continue in the coming years, as more and more people gain access to smartphones and the internet. The growing popularity of smart home devices, such as voice assistants, is also expected to drive the growth of the hyperlocal grocery delivery market, as consumers can use these devices to order groceries hands-free.
Hyperlocal Grocery Delivery Market Segment Insights
Hyperlocal Grocery Delivery Market Delivery Model Insights
The Hyperlocal Grocery Delivery Market segmentation by Delivery Model comprises Store-based and Warehouse-based. The Store-based delivery model dominates the market, accounting for a significant share of the Hyperlocal Grocery Delivery Market revenue. This model involves partnering with local grocery stores to deliver groceries to customers within a limited radius. The proximity of stores to customers enables faster delivery times, typically within 30-60 minutes. The model's popularity stems from its convenience and efficiency, as customers can access a wide variety of products from their neighborhood stores without the hassle of in-store shopping or long delivery waits.In contrast, the Warehouse-based delivery model entails maintaining central warehouses stocked with a comprehensive range of grocery items. Orders are picked and packed at the warehouse and then delivered to customers' doorsteps. This model offers a more extensive product selection and the potential for lower prices due to economies of scale. However, delivery times may be slightly longer compared to the store-based model, depending on the distance between the warehouse and the customer's location. The growth of the Store-based delivery model is primarily driven by the increasing demand for convenience and time-saving solutions.Furthermore, the proliferation of mobile apps and online ordering platforms has simplified the ordering process, contributing to the model's popularity. The Warehouse-based delivery model, on the other hand, is expected to gain traction in the coming years as consumers become more price-sensitive and seek a wider product assortment.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Hyperlocal Grocery Delivery Market Product Category Insights
The Hyperlocal Grocery Delivery Market segmentation by Product Category includes Fresh Produce, Dairy, and Eggs, Meat, and Seafood, Packaged Foods, and Beverages. In the 2023 timeframe, Fresh Produce is expected to hold a significant market share, also attributed to an increase in demand for fresh and organic fruits and vegetables. Additionally, Packaged Foods are projected to register significant market growth because of a growing demand for the convenience of cooked and ready-to-eat meals. By the same token, Dairy, and Eggs will maintain the overall share, while growth rates for Meat and Seafood are expected to be moderate, due to an increasing share of consumers who recognize the benefits of fresh and high-quality products.As for Beverages, overall market share will be minimal but steady growing during the upcoming period. In conclusion, the Hyperlocal Grocery Delivery Market is anticipated to exhibit robust growth in the 2023 timeframe across all product categories. Viewer growth across these key aforementioned issues as stronger online grocery shopping penetration and the increasing prevalence of hyperlocal delivery services.
Hyperlocal Grocery Delivery Market Delivery Timeframe Insights
The Hyperlocal Grocery Delivery Market is segmented by delivery timeframe, including 'Under 30 minutes', '30 minutes to 1 hour', '1 to 2 hours', and 'Same day delivery'. The 'Under 30 minutes' segment is projected to account for the largest share of the market in 2023, with a revenue of USD 4.9 billion. This is due to the increasing demand for instant delivery services from consumers, who want their groceries delivered to their doorstep as quickly as possible. The '30 minutes to 1 hour' segment is expected to grow at a CAGR of 12.5% during the forecast period, as more consumers opt for faster delivery times.The '1 to 2 hours' segment is expected to grow at a CAGR of 10.3%, while the 'Same day delivery' segment is expected to grow at a CAGR of 8.7%. The growth of the hyperlocal grocery delivery market is being driven by a number of factors, including the increasing adoption of e-commerce, the rising popularity of on-demand delivery services, and the growing demand for convenience from consumers.
Hyperlocal Grocery Delivery Market Customer Demographics Insights
The Hyperlocal Grocery Delivery Market is segmented based on customer demographics, including age, income level, urban vs. suburban residents, and household size. Age Millennials and Gen Z consumers are driving the growth of the hyperlocal grocery delivery market. These tech-savvy generations are more likely to order groceries online and have them delivered to their doorstep. Income Level The hyperlocal grocery delivery market is also seeing strong growth among middle- and high-income consumers. These consumers are willing to pay a premium for the convenience of having their groceries delivered. Urban vs. Suburban Residents Urban residents are more likely to use hyperlocal grocery delivery services than suburban residents. This is due to the fact that urban areas have a higher population density and a greater number of grocery stores within a short delivery radius. Household Size Larger households are more likely to use hyperlocal grocery delivery services than smaller households. This is because larger households have a greater need for groceries and are more likely to find it convenient to have them delivered. The Hyperlocal Grocery Delivery Market is expected to grow significantly in the coming years, driven by the increasing popularity of online grocery shopping and the growing number of consumers who are willing to pay for the convenience of having their groceries delivered.
Hyperlocal Grocery Delivery Market Regional Insights
The Hyperlocal Grocery Delivery Market is segmented into North America, Europe, APAC, South America, and MEA. The APAC region is expected to hold the largest market share in 2023, and is projected to reach a valuation of USD 24.56 billion by 2032, exhibiting a CAGR of 12.1% during the forecast period. The growth in the APAC region can be attributed to the increasing adoption of e-commerce and the rising popularity of quick commerce services. The North American region is expected to witness significant growth in the hyperlocal grocery delivery market, owing to the presence of major players such as Instacart and Shipt.The market in North America is projected to reach a valuation of USD 14.32 billion by 2032, exhibiting a CAGR of 10.9% during the forecast period. The European market for hyperlocal grocery delivery is expected to grow steadily, driven by the increasing demand for convenience and the growing adoption of digital technologies. The market in Europe is projected to reach a valuation of USD 9.21 billion by 2032, exhibiting a CAGR of 9.5% during the forecast period. The South American and MEA regions are expected to witness moderate growth in the hyperlocal grocery delivery market.The market in South America is projected to reach a valuation of USD 4.23 billion by 2032, exhibiting a CAGR of 8.4% during the forecast period. The market in the MEA region is projected to reach a valuation of USD 2.17 billion by 2032, exhibiting a CAGR of 7.2% during the forecast period.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Hyperlocal Grocery Delivery Market Key Players And Competitive Insights
Major players in the Hyperlocal Grocery Delivery Market are constantly striving to gain a competitive edge by implementing various strategies such as expanding their geographical reach, introducing new services, and forming strategic partnerships. The competitive landscape of the Hyperlocal Grocery Delivery Market industry is highly dynamic, with leading Hyperlocal Grocery Delivery Market players continuously seeking innovative ways to differentiate themselves and capture market share. These players actively engage in mergers and acquisitions, product launches, and marketing campaigns to strengthen their position in the market. The Hyperlocal Grocery Delivery Market development is largely driven by the increasing adoption of e-commerce, the growing popularity of on-demand delivery services, and the rising demand for convenience among consumers. The competitive landscape is expected to further intensify in the coming years as new entrants emerge and existing players expand their operations.Instacart is a leading Hyperlocal Grocery Delivery Market player that has established a strong presence in the United States and Canada. The company operates a network of independent contractors who deliver groceries from local stores to customers' doorsteps. Instacart has forged strategic partnerships with major retailers such as Whole Foods Market, Kroger, and Costco Wholesale to expand its reach and offer a wide range of products. The company has also invested in developing its own proprietary technology, including a user-friendly mobile app and a sophisticated logistics platform that optimizes delivery routes and ensures timely deliveries. Instacart's commitment to customer satisfaction and its focus on innovation have contributed to its success in the Hyperlocal Grocery Delivery Market.Shipt is another prominent competitor in the Hyperlocal Grocery Delivery Market. Headquartered in the United States, Shipt offers grocery delivery services from a variety of local stores, including Publix, Target, and H-E-B. The company has established a network of dedicated shoppers who handpick and deliver groceries to customers' homes. Shipt places a strong emphasis on building relationships with local businesses and supporting the communities it serves. The company has also developed a user-friendly mobile app that allows customers to easily place orders, track their deliveries, and communicate with shoppers. Shipt's focus on quality and its commitment to providing a personalized shopping experience have contributed to its growth and success in the Hyperlocal Grocery Delivery Market.
Key Companies in the Hyperlocal Grocery Delivery Market Include
- Dunzo
- Zapp
- Gorillas
- Swiggy Instamart
- Getir
- Zepto
- Gopuff
- Zomato
- Amazon Fresh
- Blinkit
- Yango Deli
- Jokr
- Buyk
- Fridge No More
- Dija
Hyperlocal Grocery Delivery Market Industry Developments
The hyperlocal grocery delivery market size is projected to reach USD 50.0 billion by 2032, exhibiting a CAGR of 11.6% during the forecast period. Increasing urbanization, rising disposable income, and the growing popularity of online shopping are driving market growth. Moreover, the COVID-19 pandemic has accelerated the adoption of hyperlocal grocery delivery services due to the need for contactless and convenient shopping options. Key industry trends include the expansion of delivery zones, partnerships with local retailers, and the integration of advanced technologies such as AI and automation. Notable recent developments include the launch of new services by major players such as Uber and Amazon, as well as the emergence of specialized hyperlocal delivery startups.
Hyperlocal Grocery Delivery Market Segmentation Insights
Hyperlocal Grocery Delivery Market Delivery Model Outlook
- Store-based
- Warehouse-based
Hyperlocal Grocery Delivery Market Product Category Outlook
- Fresh Produce
- Dairy and Eggs
- Meat and Seafood
- Packaged Foods
- Beverages
Hyperlocal Grocery Delivery Market Delivery Timeframe Outlook
- Under 30 minutes
- 30 minutes to 1 hour
- 1 to 2 hours
- Same day delivery
Hyperlocal Grocery Delivery Market Customer Demographics Outlook
- Age (e.g., Millennials, Gen Z)
- Income Level
- Urban vs. Suburban Residents
- Household Size
Hyperlocal Grocery Delivery Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
16.68(USD Billion) |
| Market Size 2023 |
18.61(USD Billion) |
| Market Size 2032 |
50.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
11.6% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Dunzo, Zapp, Gorillas, Swiggy Instamart, Getir, Zepto, Gopuff, Zomato, Amazon Fresh, Blinkit, Yango Deli, Jokr, Buyk, Fridge No More, Dija |
| Segments Covered |
Delivery Model, Product Category, Delivery Timeframe, Customer Demographics, Regional |
| Key Market Opportunities |
Growing urban population Increasing smartphone penetration Rising disposable income Expanding ecommerce market Innovations in delivery technology |
| Key Market Dynamics |
Growing urbanization Convenience seeking consumers Rising disposable income Technological advancements Increasing competition |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Hyperlocal Grocery Delivery Market size was valued at USD 18.61 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 11.6% from 2024 to 2032, reaching a market size of USD 50.0 billion by 2032.
The key factors driving the growth of the Hyperlocal Grocery Delivery Market include the increasing penetration of smartphones and internet connectivity, the growing popularity of online shopping, the rising demand for convenience and time-saving solutions, and the expansion of e-commerce infrastructure in emerging economies.
The major regions contributing to the growth of the Hyperlocal Grocery Delivery Market are North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to hold the largest market share due to the presence of well-established e-commerce infrastructure and high consumer spending power.
The key competitors in the Hyperlocal Grocery Delivery Market include Instacart, DoorDash, Uber Eats, Gopuff, and Getir. These companies are investing heavily in expanding their operations and developing new technologies to meet the growing demand for hyperlocal grocery delivery services.
The challenges faced by the Hyperlocal Grocery Delivery Market include the high cost of last-mile delivery, the need for efficient inventory management, and the competition from traditional grocery retailers. However, ongoing advancements in technology and the increasing adoption of e-commerce are expected to mitigate these challenges and drive the growth of the market.
The key trends shaping the Hyperlocal Grocery Delivery Market include the increasing use of artificial intelligence (AI) for demand forecasting and route optimization, the growing popularity of subscription-based services, and the emergence of new business models such as dark stores and micro-fulfillment centers.
The growth opportunities for the Hyperlocal Grocery Delivery Market include the expansion into new markets, the development of new technologies to improve efficiency and reduce costs, and the partnerships with traditional grocery retailers. The market is also expected to benefit from the growing demand for convenience and time-saving solutions.
The key applications of Hyperlocal Grocery Delivery include delivering groceries to homes, offices, and other locations within a short timeframe. It is also used for delivering other essential items such as medicines, pet supplies, and household items.
The future outlook for the Hyperlocal Grocery Delivery Market is positive. The market is expected to continue to grow at a steady pace, driven by the increasing penetration of smartphones and internet connectivity, the growing popularity of online shopping, and the rising demand for convenience and time-saving solutions.
The key regulatory factors impacting the Hyperlocal Grocery Delivery Market include regulations related to food safety, delivery times, and labor laws. Different countries have different regulations in place, and companies operating in the market need to be aware of these regulations to ensure compliance.
