Report ID: SQMIG45A2531
Report ID: SQMIG45A2531
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Report ID:
SQMIG45A2531 |
Region:
Global |
Published Date: March, 2025
Pages:
197
|Tables:
94
|Figures:
71
Instant Grocery Market size was valued at USD 190.43 Billion in 2024 and is poised to grow from USD 219.37 Billion in 2025 to USD 680.45 Billion by 2033, growing at a CAGR of 15.2% during the forecast period (2026–2033).
The growing need for convenience and time-saving options is one of the major drivers of the instant grocery market, as customers like to buy necessary items quickly and easily through online channels, resulting in a boom in on-demand grocery services.
The global instant grocery market has also experienced a steep rise in demand, influenced by changing consumer demand and innovation from technology that transformed the means by which consumers are buying groceries as well as making deliveries. Digital platforms and smartphone applications-powered instant grocery delivery service has revolutionized the old purchasing model of the past by enabling consumers to make purchases instantly and receive delivery of the items in hours or minutes. This change is driven primarily by the growing need for convenience, time-saving, and busy lifestyles. Urbanization, combined with an expanding base of working professionals and families, has provided instant grocery services with a huge customer base that seeks quick, convenient shopping experiences.
Apart from city populations, younger generations, particularly millennials and Gen Z, are driving market expansion because of their strong use of smartphones and online services. These generations prefer instant gratification and on-demand services and hence have a higher uptake of instant grocery services. The market is also being influenced by a range of factors, such as developments in logistics, supply chain efficiency, and the ubiquitous availability of rapid delivery channels like drones, electric vehicles, and local fulfillment centers. Also, collaborations between grocery delivery platforms and supermarkets are becoming more prevalent, further improving the availability and affordability of products.
The increased need for healthful lifestyles and a demand for environmental-friendly and natural products have also been crucial drivers of the expansion of the market. Further, the onset of the COVID-19 pandemic functioned as the growth driver of the market as consumers began inquiring about touchless shopping arrangements, further quickening the increase in instant grocery services adoption. Therefore, there are always new entrants in the market who provide customized services, offers, and loyalty programs to lure customers, making competition in the industry further sharpened.
Key Market Attributes
In January 2025, international grocery delivery platform Instacart expanded its partnerships with major grocery chains and local markets to enhance its delivery capabilities in North America. Through the use of artificial intelligence and machine learning in its logistics platform, the company hopes to achieve faster delivery and increased order accuracy. Instacart's automated creation of a faster and more efficient delivery network is set to have a deep influence on the instant grocery sector by making it an effortless experience for consumers, driving demand higher, and enhancing competition among delivery providers. This will likely drive further innovations and operational improvements in the next 4-5 years.
In December 2024, Walmart announced the launch of its AI-powered “Instant Grocery” initiative, aimed at transforming urban grocery shopping through a network of micro-fulfillment centers in key global cities. The move is aimed at reducing delivery times through the use of automation and local storage nodes. The firm will increase the number of its autonomous delivery drones and vehicles, cutting the cost of delivery as well as reducing its environmental footprint. This innovation is likely to revolutionize the instant grocery industry in the next couple of years as additional companies move toward similar initiatives, resulting in quicker and more environmentally friendly delivery mechanisms.
In November 2024, Amazon Fresh made an announcement regarding expanding the drone-delivered grocery shopping facility throughout Europe and North America. By tapping into its existing logistics network and sophisticated AI-powered algorithms, Amazon expects to deliver groceries with ultra-quick times, including in the most populous urban cities. This ten-year strategy will definitely overturn conventional grocery-store models by establishing drone delivery as the norm over the coming decade. With plans for widespread integration, Amazon Fresh is positioning itself to become a dominant player in the global instant grocery market, potentially influencing consumer expectations for speed and convenience in the future.
In October 2024, Uber Eats unveiled a new partnership with regional grocery chains to launch its "Grocery Marketplace" in several international markets, including Asia-Pacific and Europe. The platform leverages sophisticated data analytics and AI to forecast consumer tastes, providing individualized grocery suggestions and instant orders. The initiative marks the long-term trend towards data-based, individualized grocery shopping in the grocery market. For the next decade, Uber Eats intends to expand the program, creating new market forces and establishing a standard for individualized, on-demand grocery shopping that could be followed by other platforms.
Market snapshot - 2026-2033
Global Market Size
USD 165.3 billion
Largest Segment
On-Demand Delivery
Fastest Growth
Scheduled Delivery
Growth Rate
15.2% CAGR
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Global Instant Grocery Market is segmented by Product, Food Products, Non-food Products and region. Based on Product, the market is segmented into Food Products and Non-food Products. Based on Food Products, the market is segmented into Breakfast & Dairy, Snacks & Beverages, Staples & Cooking Essentials, Fresh Produce and Others. Based on Non-food Products, the market is segmented into Cleaning Essentials, Bath & Body, Home Utilities and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Service Type
As per categorization by service type, the market is classified as on-demand delivery, scheduled delivery, and click & collect. Among these, on-demand delivery earned the largest share and continues to hold the dominant global instant grocery market share. On-demand delivery companies are transforming the global instant grocery market by providing speedy, flexible, and convenient shopping experiences. AI-driven route optimization, automated fulfilment centers, and drone deliveries accelerate speed and efficiency. On-demand services lead as consumers crave instant gratification, especially among the busy urban population. The capacity to deliver groceries in under an hour, coupled with growing mobile app usage and optimized logistics, makes on-demand delivery the go-to model for today's consumers.
Scheduled delivery services are poised to become the fastest-growing segment in the global instant grocery market due to the increasing need for convenience and predictability. Customers, especially in cities, are looking for greater control over when they get their grocery orders, choosing scheduled deliveries that perfectly fit into their schedules. This type of service enables customers to choose particular time slots, eliminating the anxiety of last-minute delivery. Also, it profits retailers by eliminating logistics and improving delivery routes. As people enjoy customized shopping and have hectic lives, scheduled delivery is gaining favor, and it is growing swiftly.
Analysis by Product Category
The groceries product category is dominating the global instant grocery market, driven by innovations such as smart inventory management, personalized product recommendations, and AI-based demand forecasting. Food items, such as fresh fruits and vegetables, dairy products, and staples, are being made increasingly convenient through ultra-rapid delivery services and extended product offerings. The category leads because of its daily need, with customers relying more on on-demand solutions for convenience. Having the capability to deliver fresh groceries quickly and dependably has become a major driver of instant grocery market growth, fulfilling the demand for speed, quality, and convenience.
The fresh produce category is expected to be the fastest-growing segment in the global instant grocery market due to increasing consumer demand for healthy, convenient, and sustainably sourced food. As people become more aware of nutrition and freshness, they demand convenient, hassle-free access to fresh fruits, vegetables, and herbs. Technology in cold chain logistics, enhanced packaging, and rapid delivery solutions allows retailers to ensure product integrity in transit. Also, growing demand for tailored grocery services based on fresh, locally sourced ingredients is fueling expansion, putting fresh produce on the radar for growth in the instant grocery industry in the future.
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North America dominates the global instant grocery market due to its advanced technological infrastructure, high consumer demand for convenience, and widespread adoption of online shopping platforms. This very rapid urbanization and equally busy lifestyles have created the demand for fast grocery delivery on an instant basis, making it the incumbent in the said domain.
The rapid growth of the instant grocery market in the United States comes due to a tech-savvy consumer base, alongside heavy investments and innovations in e-commerce, logistics, and delivery. Bringing to the fore Amazon and Instacart, with the speedy and efficient services that cater to bustling city dwellers.
Europe is the fastest-growing region in the global instant grocery market, driven by its tech-savvy population, high demand for convenience, and increasing mobile app adoption. Increasing consumer demand for their order to reach them faster and expansion in local locations in key cities will propel the markets.
In the United Kingdom, the strong demand for convenience and sustainability, combined with advanced digital infrastructure and innovations in delivery technology, drives the growth of the instant grocery market. By providing quality logistics and being environmentally friendly, organizations like Ocado as well as Tesco improve their customer experience and drive further market development.
Asia-Pacific is experiencing rapid growth in the global instant grocery market, driven by increasing urbanization, a growing middle class, and rising smartphone usage. These developments are driving demand in the market: the users' proclivity for on-demand services, the proliferation of e-commerce platforms, and improved delivery infrastructure. Additionally, innovations in mobile apps, AI-driven logistics, and a shift toward more sustainable delivery methods are contributing to the region’s dominance in the instant grocery market, positioning it for significant expansion in the coming years.
The Middle East and Africa (MEA) region is witnessing steady growth in the global instant grocery market, fueled by urbanization, increasing internet penetration, and a young, tech-savvy population. On-demand grocery delivery services are gaining momentum among busy people who want an easier way to get hold of fresh produce. Penetration of e-commerce infrastructure and partnerships with local retailers providing instant grocery delivery service with delivery platforms, and other developments is expected to add speed to these services in the years to come.
South America is gradually emerging as a growing region for global instant grocery market, driven by urbanization, increasing smartphone usage, and evolving consumer habits. The demand is increasing, especially in large cities such as São Paulo and Buenos Aires, for convenience and fast delivery. With the rise of e-commerce platforms and geographic localization of grocery retailers, most are getting ready for the expanded use of mobile apps and improved logistics so that consumer demands can be easily fulfilled. Next comes improved infrastructure and the put-down of online shopping-more than sufficient to launch the region into new heights in the global instant grocery market growth.
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Instant Grocery Market Drivers
Consumer Demand for Convenience
Technological Advancements in Delivery
Instant Grocery Market Restraints
Delivery Infrastructure Challenges
Regulatory and Compliance Issues
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The competitive environment in the global instant grocery market is very dynamic with some global firms driving innovation and expansion. Major players such as Instacart, Amazon Fresh, Uber Eats, Walmart, and Tesco are vying for market share through increasing delivery speed, broader product range, and the use of high-tech solutions such as AI and drones. As consumers increasingly look for convenience, these players are constantly refining their platforms, offering individualized services, and optimizing logistics in order to stay ahead of the competition in the expanding business.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global instant grocery industry is witnessing fast growth due to changing consumer needs for convenience, time-efficient solutions, and technological advancements. Urbanization, hectic lifestyles, and growing smartphone usage among young generations have resulted in high demand for on-demand services.
Innovations in logistics, AI, and drone deliveries have improved speed and efficiency, making quick and convenient grocery shopping more accessible. Market expansion is further fueled by partnerships, technological integration, and the growing interest in health-conscious and eco-friendly products. As new players enter the market, competition intensifies, spurring continued innovation and further enhancing consumer experiences in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 190.43 Billion |
| Market size value in 2033 | USD 680.45 Billion |
| Growth Rate | 15.2% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Instant Grocery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Instant Grocery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Instant Grocery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Instant Grocery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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