The "Europe Online Grocery Market Size and Share Analysis Growth Trends and Forecast Report 2025-2033" report has been added to ResearchAndMarkets.com's offering.
The Europe Online Grocery Market is expected to reach US$ 797.34 billion in 2033 from US$ 178.51 billion in 2024, with a CAGR of 18.09% from 2025 to 2033.
The market for online groceries has expanded as a result of better delivery logistics, digital payment methods, and rising convenience demand. Compared to traditional retailers, it gives customers the ability to compare prices, shop whenever they want, and access a wider range of products. Due to changing customer preferences and the increase of tech-savvy, busy lifestyles, the industry is growing.
A number of factors are driving the expansion of the online grocery business in Europe. A major factor is the growing demand from customers for time-saving and convenient solutions, as more buyers choose the convenience of home delivery. Expanded access to online grocery platforms is made possible by increased internet and smartphone usage as well as better digital payment methods.
In 2.02 trillion people (86% of the population) in Europe had a mobile service subscription, and by 2025, that number is expected to increase to 480 million, according to GSMA Intelligence. Furthermore, the purchasing experience is further improved by effective logistics and quick delivery choices. The demand is also being driven by shifting consumer tastes toward specialized, organic, and healthier items. Innovations like contactless purchasing and tailored recommendations, along with the rising popularity of subscription services, are driving industry expansion throughout Europe.
Growth Drivers for the Europe Online Grocery Market
Different Delivery Models
Online grocery shopping involves more than just purchasing groceries from a website; it also includes flexible delivery options. Innovative strategies like as click-and-collect orders, which consumers place online and can pick up from a nearby store or a location of their choosing, are used in place of the conventional home delivery method. The appeal of this strategy is the delivery cost savings and convenience it provides for people who choose to pick up their food at a convenient time.
Second, subscription services are well-liked, particularly for meal packages, snacks, and fresh goods. These businesses frequently send large quantities of fresh supplies or meals that have already been made once a week. Customers who want easy lives and good diets are the ones who require these services the most. The advent of lightning-fast delivery services has recently changed the industry.
Improved Supply Chain Innovations and Logistics
The development of supply chain and logistics technologies has been crucial to the expansion of the online grocery business in Europe. Grocery deliveries used to take longer, and people avoided buying perishable items online. Nonetheless, the efficiency of supermarket deliveries has significantly increased due to developments in last-mile delivery, automation, and real-time tracking.
The dark stores are another important factor in delivering faster. Fulfillment facilities that exclusively handle online orders are known as "dark stores." To enable quicker order pickup and packaging, they are typically found in cities. In addition, supermarket delivery services pioneered the hyper-localized, on-demand delivery concept, promising delivery in a matter of minutes. Because of this speed, consumers now want their groceries to be delivered quickly, which gives businesses that invest in logistics optimization a competitive advantage.
Customer Demand for Sustainability and Health
The demand for local, sustainable, and organic produce has increased as European customers grow more environmentally conscious and health conscious, which has an impact on the online grocery business. Numerous studies indicate that consumers, particularly those in Northern and Western Europe, are most concerned about sustainability. In response, internet merchants are expanding their product lines to include more organic, fair-trade, and plant-based options.
Additionally, since they encourage green packaging and the decrease of food waste, more shops have committed to reducing their environmental impact. Customers are also favoring businesses who are eager to source ethically and offer transparency throughout their supply chain, and they frequently demand brands that align with their beliefs when making purchases.
Challenges in the Europe Online Grocery Market
High operational costs
One major issue facing the European online grocery business is high operating costs. Transportation, inventory control, and warehousing costs can affect profitability, particularly for perishable commodities that need to be handled carefully and delivered on time. Operational costs are further increased by maintaining dependable and effective logistical networks, making technological investments, and providing competitive pricing. Large-scale fulfillment facilities and the construction of cutting-edge delivery infrastructure in both urban and rural areas are also necessary, which puts additional financial strain on companies and hinders their long-term viability and market expansion.
Intense Competition
The online grocery business in Europe is highly competitive, with several well-known companies like Tesco, Carrefour, and Lidl as well as up-and-coming startups fighting for consumers' attention. Profit margins are strained by price wars, regular promotions, and ongoing advancements in customer satisfaction and delivery speed. While larger organizations make significant investments in infrastructure and technology, smaller players struggle to differentiate their offers. This competitive environment necessitates ongoing adaptation, which raises marketing expenses and makes it difficult for companies to be profitable while drawing in and keeping clients.
Competitive Landscape: Overview, Recent Developments, Revenue Analysis
- Tesco Plc
- ICA Gruppen AB
- Auchan SA
- Colruyt Group
- Carrefour
- Costco Wholesale Corporation
- Koninklijke Ahold Delhaize N.V.
- Ocado Group plc
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2024 2033 |
| Estimated Market Value (USD) in 2024 | $178.51 Billion |
| Forecasted Market Value (USD) by 2033 | $797.34 Billion |
| Compound Annual Growth Rate | 18.0% |
| Regions Covered | Europe |
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. Europe Online Grocery Market
6. Market Share Analysis
6.1 By Product
6.2 By Purchase Type
6.3 By Countries
7. Product
7.1 Vegetables and Fruits
7.2 Dairy Products
7.3 Staples and Cooking Essentials
7.4 Snacks
7.5 Meat Seafood
7.6 Others
8. Purchaser Type
8.1 Subscription Purchase
8.2 One Time Purchase
9. Countries
9.1 Belgium
9.1.1 Click Collect
9.1.2 Home Delivery
9.2 France
9.2.1 Click Collect
9.2.2 Home Delivery
9.3 UK
9.3.1 Click Collect
9.3.2 Home Delivery
9.4 Germany
9.4.1 Click Collect
9.4.2 Home Delivery
9.5 Spain
9.5.1 Click Collect
9.5.2 Home Delivery
9.6 Italy
9.6.1 Click Collect
9.6.2 Home Delivery
9.7 Netherlands
9.7.1 Click Collect
9.7.2 Home Delivery
9.8 Norway
9.8.1 Click Collect
9.8.2 Home Delivery
9.9 Sweden
9.9.1 Click Collect
9.9.2 Home Delivery
9.10 Switzerland
9.10.1 Click Collect
9.10.2 Home Delivery
9.11 Russia
9.11.1 Click Collect
9.11.2 Home Delivery
9.12 Turkey
9.12.1 Click Collect
9.12.2 Home Delivery
10. Porter's Five Forces Analysis
10.1 Bargaining Power of Buyers
10.2 Bargaining Power of Suppliers
10.3 Degree of Rivalry
10.4 Threat of New Entrants
10.5 Threat of Substitutes
11. SWOT Analysis
11.1 Strength
11.2 Weakness
11.3 Opportunity
11.4 Threat
12. Key Players
For more information about this report visit https://www.researchandmarkets.com/r/8ha3fj
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