Instant Grocery Market Growth & Trends
The global instant grocery market size is expected to reach USD 588.2 billion by 2030, growing at a CAGR of 19.0% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. Grocery retailers are compelled to reconsider their strategy as consumers shift toward omnichannel from brick and mortar stores. Over the projection period, strong trends, including shifting customer attitudes and technological advancements such as accessible and engaging interfaces implemented in instant grocery delivery apps, will likely disrupt the grocery industry nationwide.
Several companies are implementing strategic acquisitions to expand their global footprint, which is expected to create a positive outlook for the market. For instance, in August 2021, GoPuff, a U.S.-based grocery delivery startup, acquired its U.K.-based competitor Dija to expand its operations in Europe. Dija is one of several recent startups that deliver goods to customers’ doors in minutes.
Several prominent players have made significant investments as the competition to dominate the instant delivery industry picked up. For instance, in October 2021, Gorillas, a grocery delivery service based in Berlin, was awarded a USD 235 Billion investment by Delivery Hero. Delivery Hero now owns 8% of the rapidly expanding firm, which has more than 180 warehouses across nine countries and achieved coveted "unicorn" status just over a year after its founding. This acquisition is expected to create new opportunities for the market.
The COVID-19 pandemic has fueled the growth of grocery delivery startups as customers have turned to internet marketplaces instead of physical storefronts to buy their necessities. Investors put billions into quick commerce that promised to supply items, including food products to daily essentials. Items are being delivered from specialized hubs known as dark stores within 15 minutes, while the Covid-19 lockdowns kept consumers inside their homes.
Instant Grocery Market Report Highlights
- The food products segment is expected to witness the fastest CAGR during the forecast period, attributed to the growing popularity of smartphones and mobile devices, improved websites, smartphone app interfaces, and the development of crowdsourcing business models for online grocery instant delivery
- The breakfast & dairy segment is expected to witness the fastest growth during the forecast period owing to the high consumption and minimal shelf life of such products
- The cleaning essentials segment is expected to remain dominant during the forecast period, owing to the rising awareness of hygiene and its emphasis on daily life since the outbreak of the pandemic
- The Asia Pacific regional market is expected to witness the fastest CAGR during the forecast period. The growth is attributed to the surge in the popularity of instant home delivery grocery app startups such as Zepto and Blinkit