Instant Grocery Market Overview:
Instant Grocery Market Size was estimated at 31.53 (USD Billion) in 2022. The Instant Grocery Market is expected to grow from 33.8 (USD Billion) in 2023 to 63.1 (USD Billion) by 2032. The Instant Grocery Market CAGR (growth rate) is expected to be around 7.19% during the forecast period (2024 - 2032).
Key Instant Grocery Market Trends Highlighted
The Instant Grocery Market is experiencing evolving trends that shape the industry's landscape. Key market drivers include the increasing popularity of e-commerce, the growing demand for convenience, and the technological advancements in delivery systems. These factors are fueling the rapid growth and adoption of instant grocery services.
Opportunities abound in the market, particularly in expanding into underserved areas, partnering with local businesses, and leveraging data analytics to enhance customer experience. Recent trends include the emergence of ultrafast delivery options, subscription-based services, and the integration of artificial intelligence to streamline processes.
The market is witnessing the rise of new players alongside established retail giants. These players are experimenting with innovative approaches, such as micro-fulfillment centers, automated warehouses, and partnerships with delivery service providers. The focus on sustainability and reducing carbon footprint is also gaining traction, driving the adoption of electric vehicles and eco-friendly packaging. By staying abreast of these trends and capitalizing on the opportunities presented, businesses can position themselves for success in the dynamic Instant Grocery Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Instant Grocery Market Drivers
Rising Popularity of Online Grocery Shopping
The COVID-19 pandemic has accelerated the adoption of online grocery shopping as consumers sought convenient and safe ways to purchase essential items. This trend is expected to continue in the coming years as consumers become more comfortable with online shopping and appreciate the convenience and time-saving benefits it offers. The Instant Grocery Market is expected to witness significant growth in the coming years, driven by the increasing popularity of online grocery shopping.
This growth will be fueled by a number of factors, including the rising number of internet users, the increasing penetration of smartphones and tablets, and the growing popularity of online payment methods. Additionally, the increasing number of working women and the growing popularity of online grocery shopping among millennials are expected to drive the growth of the Instant Grocery Market.
Growing Demand for Convenience and Timesaving Solutions
Consumers are increasingly seeking convenient and timesaving solutions in their daily lives. Instant grocery delivery services offer a convenient and efficient way for consumers to purchase groceries without having to leave their homes or offices. This is particularly appealing to consumers who need more time or who need help getting to a grocery store. The Instant Grocery Market is expected to benefit from the growing demand for convenience and timesaving solutions.
This growth will be driven by a number of factors, including the increasing number of dual-income households, the growing number of single-person households, and the increasing popularity of online grocery shopping among millennials.
Technological Advancements and Innovation
Technological advancements and innovation are also driving the growth of the Instant Grocery Market. The development of new technologies, such as artificial intelligence (AI) and machine learning (ML), is enabling instant grocery delivery services to improve their efficiency and accuracy. Additionally, the development of new packaging technologies is enabling instant grocery delivery services to deliver fresh and perishable items safely and efficiently.
The Instant Grocery Market is expected to benefit from technological advancements and innovation. This growth will be driven by a number of factors, including the increasing investment in research and development by instant grocery delivery services, the growing number of partnerships between instant grocery delivery services and technology companies, and the growing adoption of new technologies by consumers.
Instant Grocery Market Segment Insights:
Instant Grocery Market Service Type Insights
The Instant Grocery Market is segmented by service type into on-demand delivery, scheduled delivery, and click-and-collect. The on-demand delivery segment accounted for the largest share of the market in 2023 and is expected to continue to grow at a significant rate over the forecast period. This growth is attributed to the increasing popularity of convenience and timesaving services, as well as the growing adoption of mobile devices and online ordering platforms. The scheduled delivery segment is also expected to witness significant growth over the forecast period as consumers become more comfortable with scheduling their grocery deliveries in advance.
The click-and-collect segment is expected to grow at a slower pace as consumers continue to prefer the convenience of having their groceries delivered to their homes or offices. In terms of revenue, the Instant Grocery Market is expected to witness significant growth over the forecast period. This growth is attributed to the increasing popularity of convenience and timesaving services, as well as the growing adoption of mobile devices and online ordering platforms. The Instant Grocery Market is a highly competitive market, with a number of major players operating in the market.
Some of the key players in the market include Amazon, Instacart, Walmart, and Kroger. These companies are investing heavily in expanding their service offerings and geographic reach in order to gain market share. The growth of the Instant Grocery Market is being driven by a number of factors, including the increasing popularity of convenience and timesaving services, the growing adoption of mobile devices and online ordering platforms, and the rising demand for fresh and healthy food. The market is also being driven by the increasing number of people living in urban areas, as well as the growing number of working women.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Instant Grocery Market Product Category Insights
The Instant Grocery Market is segmented into various product categories, including Groceries, Fresh Produce, Meat and Seafood, Beverages, Household Items, Pet Supplies, and Health and Beauty Products. The Groceries segment is projected to account for the largest market share, followed by the Fresh Produce segment. The Meat and Seafood segment is expected to witness significant growth over the forecast period due to the increasing demand for fresh and organic products. The Beverages segment is also anticipated to exhibit steady growth, driven by the rising consumption of healthy and convenient beverages.
The Household Items segment is projected to grow at a moderate pace, while the Pet Supplies and Health and Beauty Products segments are expected to witness promising growth rates.
Instant Grocery Market Delivery Time Insights
The delivery time segment plays a crucial role in shaping the competitive dynamics of the Instant Grocery Market. Consumers demand fast and reliable delivery services, leading to intense competition among market players. The 'Under 30 Minutes' segment holds a significant market share, catering to customers who prioritize speed and convenience. In 2024, this segment is poised to generate $12.4 billion in revenue, exhibiting a strong growth trajectory. The '30-60 Minutes' segment also commands a substantial market presence, offering a balance between speed and cost-effectiveness.
This segment is projected to reach $10.8 billion in revenue by 2024. The 'Over 60 Minutes' segment, while accounting for a smaller market share, caters to customers who place less emphasis on delivery speed and seek cost savings. In 2024, this segment is anticipated to generate revenue of $7.2 billion. Overall, the delivery time segment offers lucrative growth opportunities for market participants, underscoring the need for efficient and timely delivery services to meet evolving consumer preferences.
Instant Grocery Market Regional Insights
The Instant Grocery Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to account for the largest revenue share in the Instant Grocery Market in 2023. In 2023, The Instant Grocery Market revenue in North America is estimated to be around USD 12.6 Billion and is projected to reach USD 19.7 Billion by 2032, exhibiting a CAGR of 5.4%. Europe was the second-largest region in the Instant Grocery Market in 2023. The market in Europe is expected to grow from USD 9.2 Billion in 2023 to USD 14.3 Billion by 2032, exhibiting a CAGR of 5.5%.
APAC is expected to witness the fastest CAGR of 8.2% during the forecast period. The Instant Grocery Market in APAC is expected to grow from USD 7.5 Billion in 2023 to USD 16.4 Billion by 2032. South America and MEA are expected to contribute significantly to the Instant Grocery Market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Instant Grocery Market Key Players and Competitive Insights:
Major players in the Instant Grocery Market have adopted various strategies to gain a competitive advantage. These strategies include partnerships, acquisitions, and product launches. Leading Instant Grocery Market players are focusing on expanding their geographical presence and product portfolio to cater to the growing demand for instant grocery delivery services. The Instant Grocery Market is expected to witness significant development in the coming years, driven by the increasing popularity of online grocery shopping and the growing adoption of mobile devices. The market is also expected to benefit from the rising number of working women and the increasing demand for convenience.
A key competitor in the Instant Grocery Market is Instacart. The company has partnered with leading retailers such as Kroger, Albertsons, and Costco to provide instant grocery delivery services. Instacart has also launched its own private-label brand, which offers a variety of grocery items. Another major competitor in the market is Gopuff. The company has a wide network of dark stores, which allows it to offer fast delivery times. Gopuff also offers a variety of products, including groceries, alcohol, and household items.
Uber Technologies is another major player in the Instant Grocery Market. The company has partnered with several convenience stores and grocery chains to offer instant grocery delivery services. Uber also offers a variety of other services, including ridesharing, food delivery, and freight. These companies are investing heavily in technology and innovation to improve their services and gain a competitive edge in the market.
Key Companies in the Instant Grocery Market Include:
Instant Grocery Market Developments
The instant grocery market is projected to grow significantly in the coming years, driven by increasing consumer demand for convenience and timesaving solutions. The market growth is attributed to the rising popularity of online grocery shopping, the expansion of delivery services, and the increasing adoption of mobile applications for grocery ordering. Key players in the market include Instacart, Getir, Gopuff, and Uber Eats. Recent developments in the market include the launch of new instant grocery services, partnerships between retailers and delivery providers, and the integration of AI and automation technologies to enhance efficiency and customer experience.
Instant Grocery Market Segmentation Insights
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Instant Grocery Market Service Type Outlook
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On-Demand Delivery
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Scheduled Delivery
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Click-and-Collect
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Instant Grocery Market Product Category Outlook
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Instant Grocery Market Delivery Time Outlook
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Under 30 Minutes
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30-60 Minutes
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Over 60 Minutes
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Instant Grocery 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 |
31.53(USD Billion) |
| Market Size 2023 |
33.8(USD Billion) |
| Market Size 2032 |
63.1(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.19% (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 |
Zapp, Buyk, JOKR, Glovoapp23, Fridge No More, Jokr, Dija, Gopuff, Uber Technologies Inc., Delivery Hero, Wolt, Weezy, Flink SE, Gorillas Technologies GmbH, Getir |
| Segments Covered |
Service Type, Product Category, Delivery Time, Regional |
| Key Market Opportunities |
Last-mile delivery optimization Expansion into underserved areas Partnerships with local retailers Data analytics for personalized marketing Integration with smart home devices |
| Key Market Dynamics |
Key Market Dynamics of the Instant Grocery Market Rapid urbanization, rising disposable income Growing e-commerce adoption Increasing demand for convenience and timesaving Rise of quick commerce and micro fulfillment centers Environmental concerns and sustainable packaging initiatives |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Instant Grocery Market is valued at USD 33.8 billion in 2023 and is projected to reach USD 63.1 billion by 2032, exhibiting a CAGR of 7.19% during the forecast period.
North America is anticipated to dominate the Instant Grocery Market throughout the forecast period. In 2023, the region accounted for approximately 38.5% of the global market share.
The growing popularity of online grocery shopping, increased penetration of smartphones and internet services, and rising disposable income are some of the key factors propelling the growth of the Instant Grocery Market.
The fresh produce segment is projected to register the fastest growth rate during the forecast period, owing to the increasing consumer demand for fresh and healthy food items.
Major players in the Instant Grocery Market include Instacart, Gopuff, Getir, Gorillas, and Zapp.
The COVID-19 pandemic had a positive impact on the Instant Grocery Market, as consumers turned to online grocery shopping for convenience and safety. This trend is expected to continue in the post-pandemic period.
Some of the key emerging trends in the Instant Grocery Market include the adoption of artificial intelligence (AI) and machine learning (ML) for personalized shopping experiences, the integration of virtual and augmented reality (VR/AR) for immersive shopping, and the rise of dark stores for faster delivery times.
The Instant Grocery Market faces several challenges, including high delivery costs, limited product availability, and competition from traditional grocery stores.
The Instant Grocery Market is expected to continue growing in the coming years, driven by the increasing adoption of online grocery shopping and the expansion of services to new regions.
Key opportunities for growth in the Instant Grocery Market include expanding into new markets, offering a wider range of products, and developing innovative technologies to improve the customer experience.
