Market Size of Europe Online Grocery Delivery Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 17.20 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Online Grocery Delivery Market Analysis
The European online grocery delivery market is expected to register a CAGR of 17.2% over the forecasted period. The market is driven by increased digital literacy, convenience of use, extensive availability of branded products, economic value with price comparison across brands, discounts and deals, and express delivery. Customers have been drawn to online shopping platforms for a long time because they are convenient and get more and more tailored to their needs. This has increased demand for online grocery delivery.
- Online grocery ordering has become increasingly popular in recent years. One of the primary drivers of market growth is the increasing proliferation of smartphones and internet connections, which allow for very easy and speedy meal delivery. According to GSMA Intelligence, 474 million individuals in Europe (86% of the population) subscribed to mobile services in 2021, and this figure is predicted to rise to 480 million by 2025.
- The incorporation of IOT enables consumers to select online grocery delivery services using voice commands, thereby simplifying the delivery procedure. Such technological advancements are expected to propel the market under consideration. IoT connects businesses to restaurants, allowing them to provide quick delivery. For example, there may be days when they have larger orders that must be fulfilled within a specific time frame. The only thing that matters to a person when making a purchase is their online experience. It must be flawless from the very first use.
- According to Otter, a delivery management and optimization platform survey conducted between January and June last year stated that people throughout the UK like ordering on weekends. The busiest day for delivery is Sunday (16.5% of all orders), followed by Saturday (16.4%) and Friday (16.3%). The number of orders is stable at the start of the week, with a little increase on Thursday. In terms of hours, the most popular time to order delivery is at night, with the 7 to 8 p.m. timeframe leading the way.
- The COVID-19 pandemic benefited the industry since it promoted the usage of online grocery delivery services as millions of individuals were instructed to stay at home to contain the health catastrophe. During the COVID-19 pandemic, the online grocery platform became one of the key players. Delivery services grew rapidly as people ordered more fast food during the pandemic. UberEats dominates the French takeout delivery industry. Still, Deliveroo tripled its subscribers by giving unlimited deliveries for a tiny introductory price of USD 1, rising to USD 5.99 at the end of the second year.
- On the flip side, apart from the consumer base, food expenses are also highly unpredictable. Several variables influence food pricing. Food delivery companies frequently struggle to keep up with market prices and establish a proper pricing strategy. Along with inflation and the mounting revenue shortfalls of its partners, food delivery services must focus on implementing offensive or defensive pricing methods to compete. This puts even more pressure on margins and has an impact on profitability.
Europe Online Grocery Delivery Industry Segmentation
An online grocer is either a physical supermarket or grocery store that accepts online orders or a separate e-commerce operation that sells grocery items. This service normally comes with a delivery fee. Online grocers are traditional supermarkets that have created internet channels to serve their customers better.
The Europe Online Grocery Delivery Market is divided into product types (retail delivery, quick commerce, meal kit delivery) and countries (the United Kingdom, Germany, France, Spain, and the Rest of Europe).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By Product Type | |
Retail Delivery | |
Quick Commerce | |
Meal Kit Delivery |
By Country | |
United Kingdom | |
Germany | |
France | |
Spain | |
Eastern Europe | |
Rest of Europe |
Europe Online Grocery Delivery Market Size Summary
The European online grocery delivery market is experiencing significant growth, driven by factors such as increased digital literacy, the convenience of online shopping, and the extensive availability of branded products. The market's expansion is further supported by technological advancements like IoT, which streamline the delivery process through voice commands. The COVID-19 pandemic acted as a catalyst, accelerating the adoption of online grocery services as consumers sought safe and convenient shopping options. The market is characterized by a competitive landscape with numerous players employing strategies like mergers, acquisitions, and partnerships to enhance their service offerings and expand their reach. The integration of various payment options and the rise of cashless transactions in countries like the Netherlands also contribute to the market's growth, as consumers increasingly prefer digital wallets and other electronic payment methods.
The market's growth is also fueled by the increasing popularity of cloud kitchens and the platform-to-consumer delivery model, which addresses logistical challenges and enhances customer experience. Collaborations between grocery retailers and delivery platforms, such as the partnership between The Casino Group and Just Eat France, exemplify the industry's efforts to meet consumer demands for quick and efficient delivery services. Additionally, regulatory measures like the UK Food Standards Agency's Food Safety Charter aim to ensure food safety standards are met across online platforms. As the market continues to evolve, investments in technology and infrastructure are expected to drive further growth, particularly in major urban areas, where demand for rapid delivery services is highest.
Europe Online Grocery Delivery Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Retail Delivery
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2.1.2 Quick Commerce
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2.1.3 Meal Kit Delivery
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2.2 By Country
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2.2.1 United Kingdom
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2.2.2 Germany
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2.2.3 France
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2.2.4 Spain
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2.2.5 Eastern Europe
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2.2.6 Rest of Europe
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Europe Online Grocery Delivery Market Size FAQs
What is the current Europe Online Grocery Delivery Market size?
The Europe Online Grocery Delivery Market is projected to register a CAGR of 17.20% during the forecast period (2024-2029)
Who are the key players in Europe Online Grocery Delivery Market?
Flink, Just Eat, Delivery Hero, Uber Eats and Gorillas are the major companies operating in the Europe Online Grocery Delivery Market.