Grocery Delivery App Market Size, Share, Growth, and Industry Analysis, By Type (Free for Orders over $10, Free for Orders over $20 & Free for Orders over $30), By Application (Medicine, Daily Necessities & Fresh Food), and Regional Forecast to 2032

GROCERY DELIVERY APPMARKET OVERVIEW

The global Grocery Delivery App market size expanded rapidly XX in 2023 and is projected to grow substantially XX by 2032, exhibiting a prodigious CAGR XX during the forecast period.

The grocery delivery app market is anticipated to witness substantial growth owing to the ever-growing search for convenience and other time-saving mechanisms. People nowadays spend little time doing grocery shopping as everything can be done online. There is a growing acceptance of online grocery delivery services as the retail sector continues to embrace mobile and internet technology. In addition, the proliferation of simpler and cheaper smartphone apps is likely to entice more people to the grocery delivery app markets. 

GLOBAL CRISES IMPACTING GROCERY DELIVERY APP MARKETCOVID-19 IMPACT

Grocery Delivery App Industry Had a Positive Effect Due to Minimal Contact during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing Higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Grocery Delivery App Market was propelled by the COVID-19 outbreak as it confined people and made social interactions more expensive and thus easier for people to go online and satisfy their grocery needs. As entry to traditional shopping techniques was blocked, the stage of providing online grocery delivery intensified as people would want to remain at home. In this pandemic situation, the market registered massive growth as consumers demanded minimal contact-based shopping and home delivery services. Moreover, this transition to digital grocery solutions not only widened the customer base but also enhanced the level of service delivery in terms of speed, user experience, and service provision.

LATEST TREND

Market growth driven by AI, subscriptions, and sustainability

The latest trends in the Grocery Delivery App Market are the growing demand for deliver it to your door services, artificial intelligence for better customer satisfaction and meeting timelines, and green packaging. Another interesting aspect is the trend of subscribers to these delivery services; that is, the clients are provided with the option of regular services for such deliveries. Such benefits usually tend to include things like special rates for particular loyal customers and even incorporate more expensive deliveries within the subscription. This trend is changing the consumer attitude towards grocery shopping visits.

GROCERY DELIVERY APP MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Free for Orders over $10, Free for Orders over $20 & Free for Orders over $30

• Free for Orders over $10: This delivery model entices consumers availing of grocery orders as they are able to receive free delivery for orders that are more than $10. Such a model is appealing to low-end customers. It lures consumers into making smaller purchases frequently. Thus, it encourages retention of customers by offering investments at low risks to the network players.
• Free for Orders over $20: The 'Free for Orders over $20' strategy is focused on the average grocery user, who is reaching buyers by offering a free grocery delivery service with a greater order value. This is helpful in ways that grocery delivery applications target more of such nuclear families or individuals who require'more products to be purchased from a different store. Delivery services can help raise the minimum order level in order to recover the loss incurred as a result of the provision of deliveries.
• Free for Orders over $30: Orders up to a set threshold of $30 are accompanied by free delivery services, which have similarly been constructed for large grocery deliveries. Household or bulk purchases are typically preferable to this model, even in hotels. In this case, such arrangements are favorable since they aim at increasing the number of items purchased where possible. It promotes higher average order values, hence a good strategy for businesses looking at reducing costs associated with delivering purchases to the customers.

BY APPLICATION

Based on application, the global market can be categorized into Medicine, Daily Necessities & Fresh Food

• Medicine: The medicine segment in grocery delivery apps caters to consumers looking for convenience in purchasing over-the-counter medications and health products. This trend has gained momentum, especially during the pandemic, when many people preferred home delivery for essential health supplies. It also expands the app's offerings beyond groceries, creating a more comprehensive service for users.
• Daily Necessities: Grocery delivery apps now provide a wide range of daily necessities, such as toiletries, cleaning products, and pet supplies. This segment has seen growth as customers seek convenience and efficiency in purchasing routine household items. The ability to order daily essentials alongside groceries makes these apps a one-stop solution for busy consumers.
• Fresh Food: The fresh food segment is crucial for grocery delivery apps, offering products like fruits, vegetables, meat, and dairy delivered directly to consumers' homes. As freshness is a priority, apps are investing in faster delivery systems and partnerships with local farmers and suppliers. This segment’s growth reflects the increasing demand for fresh, healthy food with the convenience of home delivery.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.     

DRIVING FACTORS

"Market growth driven by consumer preference for convenience and delivery subscriptions"

The primary growth lever behind the grocery delivery app market is consumer preferences that are increasingly leaning on comfort. Attitudes of ‘If we can do it online, why do we have to do it in person?’ are beginning to control how consumers shop. This change in the trend of shopping from brick-and-mortar stores to ordering goods or services for delivery at home is seen in more customers subscribing to grocery delivery applications.

"Market growth fueled by AI, machine learning, and enhanced user experience"

And also, technical aspects such as AI, machine learning, and real-time tracking are some of the reasons for the expansion of the grocery delivery app market. This revolutionizes the user experience by allowing for recommendations, quicker delivery services, and proper management control of stock. Thus, these applications have been used more often by the users in order to enhance their shopping experience and resulting grocery delivery app market growth.

RESTRAINING FACTOR

"Market growth limited by expensive delivery services and high minimum orders"

On the other hand, one of the factors restraining the market growth of grocery delivery applications is expensive delivery services. Besides, along with the delivery thresholds, minimum order values should be met, causing delivery percentages to even customers, which extends a very high limit to many customers. This is very inhibitive to most (price-sensitive) consumers, leading to a limitation of the growth potential of the market.

OPPORTUNITY

"Market growth driven by expansion into rural areas and tailored services"

Expansion of Grocery Delivery Applications Market Growth can also occur as it introduces itself in the developing regions or rural areas. With most of the urban centers being due to their strategic development, moving into the suburbs and rural areas with specific services would generate additional market potential. Furthermore, enhancing the distribution network and providing tailored products to the regions would also help in getting such customers. This growth will help in acquiring a larger target region and thus benefiting the market from a growth perspective.

CHALLENGE

"Market growth hindered by challenges in delivering fresh perishables efficiently"

For the Grocery Delivery App Market, a major hurdle is ensuring safety and quality of delivery of perishable products such as vegetables and fruits. Some perishable product deliveries, such as fruits, vegetables, and meats, need to be as fresh as can be without consuming too much time in the cause of transportation, which at times proves to be a challenge due to distance and the weather, especially in different regions. This may cause dissatisfaction among customers and hinder their future business. Furthermore, the other problem is strategizing and implementing a plan for timely deliveries without necessarily incurring a lot of costs to the business, which still remains a global challenge to the players in the industry.

GROCERY DELIVERY APP MARKET REGIONAL INSIGHTS

• NORTH AMERICA

Market growth in North America driven by demand, technology, and logistics

North America holds the utmost share of the Grocery Delivery App Market, as it has the best technological facilities, high penetration of smartphones, and adoption of e-commerce. The United States contributes towards this development, providing the most significant share of revenue from the United State Grocery Delivery App Market. The US has become a premier market for grocery delivery because of consumer demand for the service and in-country logistics. The contactless or reduced contact delivery system, especially in light of COVID-19, continues to propel market growth in this region as well.

• EUROPE

Market growth in Europe driven by e-commerce, convenience, and sustainability

Apart from North America, Europe also plays a major and active role in the grocery delivery app market with its increasing e-commerce utilization rates and smartphone penetration levels in these countries. People in the region are gradually but appreciably adopting the practice of online grocery shopping, which is very time-saving and convenient. Plus, the consumers in Europe are looking for green and sustainable delivery, hence the demand for delivery innovation in that market. Therefore, grocery delivery service network expansion and diversification are still very much alive and growing in Europe.

• ASIA

Market growth in Asia driven by urbanization, technology, and convenience

Asia’s holds remarkable Grocery Delivery App Market share, mainly due to the region’s growing urban population that is advanced in technology. Countries such as China, India, and Japan are also experiencing a growing trend of online grocery shopping as convenience and mobile-first culture gain ground. The market is expanding due to the high demand for fresh food delivery and advanced app features. In addition, the growth of e-commerce and cashless payment systems in Asia is spurring the growth of grocery delivery services.

KEY INDUSTRY PLAYERS

"Market growth driven by innovation, efficiency, and expanded geographical coverage"

Key industry players are also creating user experience developments, improvements in delivery efficiency, or broadening geographical coverage, all driving Grocery Delivery App Market growth. Food delivery companies are also utilizing Intuit, Walmart, and Amazon’s consumer demand strategies that include AI, speed, and a variety of models aimed at FBA or other direct delivery systems. All the efforts made—the personal shopping service, their innovation in logistics, and their greening strategy—help to increase coverage as well as expedite the process.

LIST OF TOP GROCERY DELIVERY APP COMPANIES

• Dija (UK)
• Postmates (US)
• Getir (US)
• Zapp (UK)
• FreshDirect (USA)

KEY INDUSTRY DEVELOPMENTS

 November 2024: Swiggy, a leading Indian food and grocery delivery platform, made a successful trading debut on the Indian stock market. The company's shares surged nearly 15% following its $1.4 billion initial public offering (IPO), the second-largest in India this year. This strong market performance reflects growing investor confidence in the quick commerce sector, driven by increasing demand for online shopping and rapid delivery services. Swiggy's Instamart service, which offers grocery deliveries within 10 minutes, has shown substantial growth, contributing to the company's positive outlook. 

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Grocery Delivery App market is poised for a continued boom pushed by increasing health recognition, the growing popularity of plant-based diets, and innovation in product services. Despite challenges, which include confined uncooked fabric availability and better costs, the demand for gluten-unfastened and nutrient-dense alternatives supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of Grocery Delivery App. As customer choices shift towards healthier and numerous meal options, the Grocery Delivery App market is expected to thrive, with persistent innovation and a broader reputation fueling its destiny prospects.