Covid-19: Online grocery market to grow at a CAGR of 20.63%
By Retail4Growth Team | April 20, 2020
The growth in number of online grocery users coupled with the door-to-door delivery options provided by the grocery apps is a major reason for this, said Absolute Markets Insights.
The Coronavirus pandemic has shaken up several industries while some markets are growing tremendous growth during this period. One such market that is showing considerable growth during these times of peril is that of the global online grocery market. Online grocery market which was estimated to be US$ 180.32 Bn in 2018 and is expected to grow at a CAGR of 20.63 %, owing to increasing demand among consumers as a result of COVID-19; said Absolute Markets Insights.
The families, especially with infants and the elderly, prefer to stay indoors and place grocery orders in order to reduce the chances of contracting the virus. There has been a massive surge in terms of the number of new users that are resorting to online applications for the delivery of groceries.
The report highlighted that in terms of revenue, the individuals accounted for the highest share in 2018. The growth in number of online grocery users coupled with the door-to-door delivery options provided by the grocery apps is a major reason for this.
It further added, among the business models, home delivery options are more popular among the end-users as compared to store pickup. The ability to choose the time slot for delivery coupled with reduced delivery fee on orders above a certain value is attracting more customers towards delivery business models.
As far as geography is concerned, the APAC region is expected to show the highest growth during the forecast years. This can be attributed to the increase in popularity of online grocery applications in countries such as India, China, Japan and South Korea, the report further said.