Europe Online Grocery Industry Analysis and Research Report

Europe Online Grocery Market Size and Share:

The Europe online grocery market size was valued at USD 66.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 440.3 Billion by 2033, exhibiting a CAGR of 23.4% from 2025-2033. The market is growing rapidly due to shifting consumer behavior, improved technology and user experience, significant innovation in logistics and supply chain, increasing variety of delivery models, and rising consumer demand for health and sustainability.

Consumer behavior in Europe is undergoing a significant transformation, with a growing preference for online shopping across various sectors, including groceries. The convenience of online grocery shopping has become a central driver. Consumers increasingly prefer the ability to shop from the comfort of their homes, avoiding long queues and travel time to physical stores. According to a report, in 2023, 82% of Europeans shop online for their groceries. Also, there was a 66% growth in online grocery shopping throughout Europe. The younger demographic, particularly millennials and Gen Z, is particularly influential in this change, with these groups being more inclined to shop online for both groceries and other everyday items. This ongoing shift is also fueled by increased mobile phone penetration and the integration of smart devices into daily life, making grocery shopping as easy as a few taps on a screen.

Technological advancements have highly improved the user experience for online grocery shopping, increasing its accessibility and efficiency for the consumer in Europe. Online platforms have become more intuitive; thus, they offer user-friendly interfaces that make browsing, ordering, and paying seamless. Artificial intelligence (AI) integrated into such platforms enhances personalization algorithms, which recommend products according to past purchases and preferences. The level of customization not only improves client satisfaction but also increases conversion rates. Moreover, AI and ML help retailers in optimizing inventory management and demand forecasting. This reduces the probability of stockouts, which is a critical concern for grocery shoppers. In addition, voice assistants are making grocery shopping yet more convenient as voice activated orders have been on an increase in the last several years.

Europe Online Grocery Market Trends:

Enhanced Logistics and Supply Chain Innovations

The evolution of logistics and supply chain technology has played a key role in the growth of Europe's online grocery market. Deliveries used to take longer for groceries, and consumers would avoid shopping online for perishable goods. However, advancements in last-mile delivery, automation, and real-time tracking have considerably improved the efficiency of grocery deliveries. Another crucial role player in delivering at a shorter time is the dark stores. Dark stores are those fulfillment centers focused solely on orders received from the internet. They are normally located in urban areas to provide faster pick-up and packaging of the orders. Besides, the grocery delivery companies innovated with the hyper-localized, on-demand delivery model that promised delivery within minutes. This pace has brought about a new consumer expectation toward quick grocery delivery, giving a competitive edge to companies that invest in logistics optimization.

Variety of Delivery Models

The online grocery sector is not simply about buying grocery items via a website but encompasses flexibility in delivery models. The traditional home delivery method is followed by innovative techniques like click-and-collect orders placed over the internet by customers which they can fetch from an adjacent store, or a place of collection selected by themselves. The beauty of this model lies in the savings on delivery and convenience it offers by getting picked up at a suitable time for those who opt to collect groceries. Secondly, subscription services are popular, especially for fresh foods, meal kits, and snacks. These companies often provide delivery of weekly lots of fresh ingredients or already prepared meals. These kinds of services are mainly needed by consumers who aim at healthy diets and easy life. The market has been transformed recently by the emergence of ultra-fast delivery services.

Consumer Demand for Health and Sustainability

As consumers in Europe become more health-conscious and environmentally aware, demand for organic, sustainable, and local produce has surged, influencing the online grocery market. According to various research studies, sustainability ranks top among the concerns of consumers, especially those from Northern and Western Europe. Thus, online retailers are responding by including more organic, fair-trade, and plant-based choices in their product offerings. In addition, more retailers have pledged to curtail their environmental footprint as they promote green packaging and the reduction of food waste. Consumers are also adopting companies that are keen to source responsibly and provide transparency through their supply chain, often demanding brands that share their values on the grounds of purchase. Online grocery growth is also being driven by the quest for local and seasonal produce and fresher, locally sourced products over mass imports.

Europe Online Grocery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Europe online grocery market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, business model, platform, and purchase type.

Analysis by Product Type:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others
   

Staple and cooking essentials are the largest market category because these represent the most common ingredients found in daily meals and households. These include the staple like flour, rice, pasta, canned, cooking oil, spices, and condiments which can be found as the majority of any household. Demand for staples is relatively inelastic because staples are essential and are frequently restocked, so both online grocery platforms and retailers will be keenly interested in selling staples. Consumers are most likely to order groceries online for convenience, particularly when they are buying in bulk or restocking the pantry, and they are likely to order large quantities of staples, thus driving consistent sales. This is also due to the increasing popularity of subscription models, which offer regular deliveries of staples like milk, bread, and fresh produce.

Analysis by Business Model:

• Pure Marketplace
• Hybrid Marketplace
• Others
   

In the pure marketplace model, online grocery marketplaces act as an intermediary that connects consumers directly to a large number of retailers or suppliers who do not hold inventory themselves. Most of these platforms provide an online marketplace in which third-party vendors can list products, and consumers can surf, compare, and then buy groceries. The responsibility of providing technology and the logistics infrastructure rests with them but they do not hold the products. In this model, retailers or suppliers handle the fulfillment and delivery of orders. This model offers significant benefits, including scalability, as the platform can list a broad variety of products.

In the hybrid marketplace model, online grocery platforms combine elements of both the pure marketplace and traditional retail models. These sites typically carry a share of the inventory themselves, but they also allow third-party sellers to list their products. This hybrid model allows the site to offer a controlled assortment of branded products and essentials from their own inventory, while still offering a huge variety of offerings from other vendors. This enables retailers to better ensure that customers have the same product in stock, high quality, and delivered promptly for the core offerings of the product, while availing of the scalability and diversity in products offered on a marketplace. The hybrid model is fast gaining preference as this offers more control over essential parameters such as product quality, delivery logistics, and pricing, and thus might lead to improved consumer experience.

Analysis by Platform:

• Web-Based
• App-Based
   

The web-based platform segment refers to online grocery services that operate primarily through websites, accessible via desktop or mobile browsers. Consumers using this platform can browse product catalogs, make purchases, and track deliveries from any device with internet access. Web-based platforms are popular for users who prefer shopping from a larger screen or those who do not want to download additional applications. These platforms are typically optimized for both desktop and mobile web experiences, providing a comprehensive view of product categories, detailed product information, and a seamless checkout process.

The app-based platform segment refers to online grocery services that are primarily accessed through dedicated mobile applications. These apps are available for various devices and provide a more streamlined, user-friendly shopping experience optimized for mobile use. App-based platforms allow for features such as push notifications, location-based promotions, easy payment integration, and real-time order tracking, which contribute to enhanced customer engagement and loyalty.

Analysis by Purchase Type:

• One-Time
• Subscription
   

In the one-time purchase model, consumers make individual, ad-hoc purchases without committing to any recurring subscription or regular delivery service. This model offers flexibility for consumers who prefer to shop for groceries based on immediate needs or fluctuating preferences. It allows customers to select products for each order without being tied to a fixed schedule, offering convenience and control over their spending. One-time purchases are typically prevalent for basic grocery shopping, where consumers buy items as required, often using digital platforms to compare prices and avail of promotions.

The subscription model in the online grocery market involves consumers committing to regular, recurring deliveries of groceries or meal kits. This model provides a more predictable, steady stream of revenue for grocery platforms, while offering convenience and personalization for consumers. Subscriptions are often tailored to specific needs, such as weekly grocery deliveries, meal kits or fresh produce boxes. Consumers benefit from the convenience of automated deliveries, ensuring they never run out of essential items or meal ingredients, and often at discounted prices compared to one-time purchases.

Country Analysis:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
   

The United Kingdom leads the market as it is has one of the most developed online grocery markets in Europe, with significant penetration driven by consumer demand for convenience, quality, and variety. Established players dominate the market, with each offering an integrated online platform for ordering groceries, home delivery, and click-and-collect services. Additionally, newer, faster delivery services have capitalized on the trend for on-demand grocery delivery, offering delivery within hours or even minutes.

Competitive Landscape:

Leading players in the European online grocery market are adopting several strategies to strengthen their position in the rapidly growing market. These players are enhancing their digital platforms to offer seamless shopping experiences, focusing on user-friendly websites and mobile apps that allow customers to browse, compare, and order products with ease. Many are investing in faster delivery options, such as same-day or one-hour delivery, to meet the rising demand for convenience, particularly in urban areas. Click-and-collect services are also expanding, enabling customers to order online and pick up groceries at their convenience. In response to growing consumer demand for sustainability, leading players are incorporating eco-friendly packaging and promoting organic and locally sourced products. Moreover, a significant focus is being placed on innovative delivery methods, with companies experimenting with robotic deliveries and drone services to enhance logistics.

The report provides a comprehensive analysis of the competitive landscape in the Europe online grocery market with detailed profiles of all major companies.

Latest News and Developments:

• In November 2024, Knuspr, an online supermarket, has partnered with US e-commerce giant Amazon to deliver groceries to Amazon Prime members in Germany. The collaboration will begin under the name “Knuspr on Amazon”.
• In June 2024, Rohlik Group, a Czech food retailtech and online grocery company, announced that it has raised $170 million in fresh growth capital, to bring its funding to over $780 million.

Europe Online Grocery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe online grocery market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Europe online grocery market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe online grocery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.