Europe Online Grocery Market Size and Share Analysis: Growth Trends and Forecast Report 2025–2033

Market Overview

The Europe online grocery market was valued at US$ 178.51 billion in 2024 and is projected to reach approximately US$ 797.34 billion by 2033, expanding at a robust CAGR of 18.09% during the forecast period. The sector is undergoing a transformative shift driven by rapid urbanization, changing consumer habits, improved digital infrastructure, and rising demand for convenience. The market has witnessed accelerated adoption post-COVID-19, with consumers increasingly turning to digital platforms for everyday grocery shopping.

Defining the Online Grocery Market

Online grocery involves purchasing food, beverages, and household products via digital platforms such as websites and mobile apps. This mode of shopping eliminates the need to visit brick-and-mortar stores, offering time-saving benefits, extensive product selection, and the ability to compare prices in real-time.

Across Europe, this model caters to diverse consumer segments—from busy urban professionals to rural households—by providing flexible delivery options like home delivery and click-and-collect. The market's evolution is also aligned with sustainable practices, reducing food waste and carbon footprints through optimized logistics.

Key Market Drivers

1. Widespread Internet and Smartphone Penetration

The rise in internet connectivity and mobile usage has significantly propelled the online grocery market across Europe. As of 2024, 88% of Europe’s population (over 520 million people) use mobile services, and 79% have adopted mobile internet. The increasing availability of user-friendly grocery apps and integrated payment options ensures a seamless shopping experience, even in remote regions.

2. Demand for Convenience and Time Efficiency

Modern consumers, especially in urban hubs, prioritize convenience. Online grocery platforms allow users to avoid queues, traffic, and the hassle of parking. With flexible delivery slots and recurring order subscriptions, grocery shopping is being reimagined as an efficient, hands-free process.

3. Advancements in E-commerce Infrastructure

Technological investments and government-backed initiatives, such as the Connecting Europe Facility (CEF) Digital Programme, have strengthened the digital and logistical backbone of e-commerce. This includes real-time inventory management, AI-driven recommendations, and sustainable last-mile delivery systems—all contributing to the sector’s scalability and responsiveness.

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Market Challenges

1. High Operational and Logistical Costs

Operating in the online grocery space requires substantial investment in cold chains, warehousing, and fleet management. Tight margins combined with high customer expectations for fast, accurate delivery challenge profitability for many online grocers.

2. Persistent Consumer Preference for In-Store Shopping

Despite digital adoption, a significant portion of consumers still prefer visiting physical stores, particularly for fresh produce like fruits and vegetables. The sensory experience—touching, smelling, and selecting items—is often considered indispensable, particularly among older demographics.

Segment Analysis

Product Categories

• Vegetables and Fruits: Driven by health-conscious consumers demanding fresh and organic produce.
• Dairy Products: Regular purchase frequency and high spoilage risks make this a critical segment.
• Staples and Cooking Essentials: Core household needs like rice, flour, and oils ensure consistent demand.
• Snacks: Impulse buying trends and brand loyalty contribute to growth in this segment.
• Meat & Seafood: Premium, sustainably sourced offerings are gaining traction.
• Others: Includes bakery products, frozen foods, and beverages.

Market by Purchase Type

• Subscription Purchases: A growing trend offering consumers convenience, cost savings, and assured availability of essentials.
• One-Time Purchases: Still dominant, particularly for non-regular or experimental items.

Market by Delivery Type

• Click & Collect: Popular among consumers who prefer control over pickup time without incurring delivery costs.
• Home Delivery: Favored by households seeking maximum convenience and contactless transactions.

Regional Insights

Belgium

With urbanization and digital adoption rising, retailers like Carrefour and Delhaize are enhancing delivery logistics, especially in major cities like Brussels and Antwerp.

France

Strong e-commerce infrastructure and active players like Leclerc and Intermarché drive the market. Strategic partnerships, such as Carrefour’s expansion with Everli, exemplify innovation in last-mile delivery and user engagement.

Germany

Retailers such as REWE and Amazon Fresh are leveraging cold-chain logistics to meet demand. Recent collaborations like Knuspr’s partnership with Amazon demonstrate evolving consumer expectations for faster delivery and premium quality.

Italy

Urban centers like Milan and Rome are witnessing rapid digital grocery adoption. A growing appetite for fresh, quality produce combined with busy lifestyles is reshaping Italy’s grocery retail model.

Emerging Trends

Online Fruit and Vegetable Market

Health and sustainability awareness have boosted demand for online fresh produce. Platforms offering freshness guarantees, minimal packaging, and quick delivery gain consumer trust and loyalty.

Meat & Seafood Segment

Consumers are increasingly selective about sourcing. Retailers are investing in vacuum packaging and real-time temperature monitoring to ensure freshness.

Subscription-Based Grocery Services

Recurring delivery models are revolutionizing consumer behavior. These services cater to routine household needs, reducing shopping friction and enhancing customer retention.

Competitive Landscape

Key Companies

1. Tesco Plc
2. ICA Gruppen AB
3. Auchan SA
4. Colruyt Group
5. Carrefour
6. Costco Wholesale Corporation
7. Koninklijke Ahold Delhaize N.V.
8. Ocado Group plc

Each company is evaluated on:

• Company Overview
• Recent Developments
• Revenue Analysis

Country Coverage (12 Countries)

• Belgium
• France
• United Kingdom
• Germany
• Spain
• Italy
• Netherlands
• Norway
• Sweden
• Switzerland
• Russia
• Turkey

Customization and Support

Renub Research provides 20% free customization. Clients also benefit from one-year post-sale analyst support and delivery in formats like PDF, Excel, and optionally, editable Word/PPT.

Customization services include:

• Market Entry Strategy
• Country-specific Dynamics
• Segment Deep Dives
• Company Expansion
• Trade and Production Analysis

Pricing and Licensing

Conclusion

The Europe online grocery market is undergoing a transformative evolution. As infrastructure strengthens and consumer behavior continues to favor digital platforms, opportunities abound for retailers to innovate, scale, and personalize offerings. Despite operational challenges and traditional shopping preferences, the market outlook remains highly optimistic, supported by technological advancements, urbanization, and growing demand for convenience.