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Instant Grocery Market Size, Share, and Industry Analysis By Service Type (On Demand Delivery, Scheduled Delivery, and Click and Collect), By Product Type (Fresh Produce, Meat and Seafood, Packaged Food Products, Beverages, Home Products, Personal Care Products, and Others), By Delivery Time (Under 30 minutes, 30-60 minutes, and Above 60 minutes), and Regional Forecast, 2025-2032

Region : Global | Report ID: FBI111330 | Status : Ongoing

 

KEY MARKET INSIGHTS

The growth of the global instant grocery market is driven by the rapid growth of e-commerce, which is spurred by the expansion of internet and smartphone usage. The market involves delivering grocery items quickly to the consumer in minutes. The strategy to provide speedy delivery through strategically placed fulfilment centers or 'dark stores,' advanced logistics, and technology to meet immediate needs and unplanned purchases.

Besides typical grocery items, many of the companies have diversified their offerings to include ready-to-eat meals, meal kits, and others, to attract more customers and increase their market share.

Instant Grocery Market Driver

Demand for Convenience and Speed to Expand the Market

One of the problems stems from the modern lifestyle, that is, most people have increasing time constraints. Grocery shopping is no exception; consumers seek ways to cut the mundane time spent on such tasks.

  • According to the National Retail Federation, the delivery success rate within promised time is 92%.

Technological Advancements to Advance the Market

The instant grocery market is tremendously reliant on a suite of technological innovations. Modern mobile apps have user-friendly interfaces to order, track real-time ordering, and facilitate excellent payment processing.

  • According to International Transport Forum, there has been 65% of adoption of electric bikes in instant grocery deliveries.

Instant Grocery Market Restraint

Very High Cost of Operation Pose Potential Impediments on this Market

The instant grocery market is hit by a very high cost of operation that acts as a restrictive criterion. Instead, it stems from a combination of factors that make for an authoritatively expensive business model. But rapidly delivered, and therefore “dark stores” or micro-fulfilment centres need to be strategically located in highly populated urban areas less blessed with generous square footage and real estate price tags.

Instant Grocery Market Opportunity

Strategic Partnerships to Create Opportunity in this Market

Forming strategic partnerships with local retailers is one of the important opportunities for growth in the market. Instant grocery providers can expand their product offerings on their platforms using local businesses and introducing items such as speciality items, fresh produce nowadays brought from near the farms, and prepared meals from nearby restaurants.

Key Insights

The report covers the following key insights:

  • Market drivers
  • Restraining factors and opportunities
  • Influence of Key Industrial Players and Major Development
  • E-commerce Market, By Key Countries

Segmentation

By Service Type

By Product type

By Delivery Time                

By Geography

 

  • On Demand Delivery
  • Scheduled Delivery
  • Click and Collect

 

  • Fresh Produce
  • Meat and Seafood
  • Packaged Food Products
  • Beverages
  • Home Products
  • Personal Care Products
  • Others

 

  • Under 30 minutes
  • 30-60 minutes
  • Above 60 minutes

 

  • North America (U.S. and Canada)
  • Europe (U.K., Germany, France, Spain, Italy, Scandinavia, and the Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia, and the Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and the Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

 

 

Analysis by Service Type

By service type, the instant grocery market is divided into on demand delivery, scheduled delivery, and click and collect.

The on-demand delivery segment is set to lead as it is aimed at the primary needs of consumers and provides ultra-fast delivery of groceries within minutes. The service is intended to meet the instant demand and to satisfy unplanned or urgent needs.

Scheduled delivery gives consumers room to plan their grocery shopping ahead of time without the stress of having to search for a date and time that suits them instead of deciding on the spot. This segment is for people who want to prepare their grocery needs and avoid supermarket rush shopping and is likely to grow considerably over the coming years.

Analysis by Product type

Based on product type, the market is divided into fresh produce, meat and seafood, packaged food products, beverages, home products, personal care products, and others.

The fresh produce segment has been a critical driver of instant grocery market growth. The product demand is rising as more and more consumers want to have fresh, healthy items that they want within a short period and it is a significant advantage to be able to deliver those things.

Instant grocery markets offer challenges to meat and seafood segments as in other segments. These products need to be handled with care and kept under the conditions of temperature control to ensure freshness and safety.

Analysis by Delivery Time

Based on delivery time, the market is divided into under 30 minutes, 30-60 minutes, and above 60 minutes.

Instant gratification is at its pinnacle with the under 30 minutes segment, which serves instant needs with a quick desire for speed. Sophisticated logistics, strategically located micro-fulfilment centers, otherwise known as dark stores, and advanced technology for real-time tracking and route optimisation all drive its expansion.

The 30–60-minute segment is set to record considerable growth as companies strike a good balance between speed and flexibility for consumers who still prefer convenience over ultra-fast delivery. This permits a broader delivery radius and possibly a wider product selection—since there are fewer time constraints.

Regional Analysis

Based on region, the instant grocery market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Advanced technological infrastructure and high consumer demand for convenience have a high influence on the North American market. The market leads mainly powered by well-capable prominent e-commerce players, i.e., Amazon and established grocery chains, which are heavily investing in their online and instant delivery capabilities.

The instant grocery market in Europe is depicting significant expansion owing to the presence of regions with different cultures and consumer preferences. However, the market is also shaped by such factors as increasing demand for convenience across Europe, urban density, the regulatory environment, and the prevalent retail ecosystem.

The instant grocery market is powered by a massive population, rapid urbanisation, and high smartphone penetration in the Asia Pacific region, amounting to a small powerhouse. Assuming no major policy change, the same may also occur in China, India, and Southeast Asian nations that are experiencing explosive growth in online grocery delivery thanks to the rise of e-commerce platforms and the growing affordability of mobile internet.

Key Players Covered

The report includes the profiles of the following key players:

  • Zapp (Texas)
  • Buyk (U.S.)
  • Jokr (Luxembourg)
  • Fridge no more (U.S.)
  • Uber Technologies (U.S.)
  • Delivery Hero (Germany)
  • Eternal Limited (India)
  • Swiggy (India)
  • Getir (Turkey)
  • Flink SE (Germany)

Key Industry Developments

  • In November 2024, Swiggy raised huge sum through an IPO. The success of Swiggy's IPO however, has a huge impact on the instant grocery market, especially in India, and certainly across the wider global landscape too. The money raised through the IPO means that Swiggy now has money to burn when it comes to scaling up its 'Instamart' instant grocery delivery service.
  • In October 2024, Amazon expanded its grocery delivery business, which demonstrates a major drive toward establishing itself in the crowded grocery marketplace. The reason for this move is to show the significance of omnichannel strategies on the modern grocery market.

In October 2024, Instacart’s technological innovations are a testament to its intention to make grocery shopping as in-store as it can be and as online as they can get, mixing efficiency with the ability to personalise the experience to the user. The Caper Cart technology has been worked on significantly by Instacart. Gamified quests, location-based coupons, and aisle-aware advertising formats are the features that have been introduced into the mix.



  • Ongoing
  • 2024
  • 2019-2023
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