The global online grocery market has been experiencing extremely strong growth over the past few years and will continue its rapid pace through 2021, owing to the easy availability of products through stores and online platforms. Between 2016-2021, the online grocery market will grow more than USD 86 billion, accelerating at a CAGR of over 20% during the forecast period. Consumers are opting for online grocery shopping as it is convenient and offers a wide variety of products, which can be delivered to the doorstep of the customer within a stipulated time.
With constantly evolving technology and increasing penetration of internet services across the globe, online grocery delivery services are on the rise. Growth in demand for functional foods and beverages, entry of start-ups in the online grocery delivery services market, and increased M&A activities and strategic alliances among major market participants are the emerging trends expected to drive the growth of the global online grocery delivery services market through 2022. We forecast this market to grow over USD 320 billion between 2018-2022, accelerating at a CAGR of approximately 22%.
Numerous factors such as the growth of various e-commerce platforms, ease of access to various e-commerce websites, and increased marketing efforts of an omnichannel model of shopping are positively impacting the online grocery shopping market. Emerging markets such as China and India are the largest consumers of grocery and the rising number of internet users in these countries has led to a growing preference for e-commerce, ultimately fueling demand for online grocery.
Countries like the US, the UK, and Germany are currently experiencing swift adoption rates for online grocery shopping platforms, driven by the existing base of e-commerce shoppers and the growing demand from millennials. Additionally, the emergence of boutique online-only grocery services is also positively impacting the market. The rise of these stores has helped overcome the logistical and consumer behavioral barriers related to e-commerce models, building credibility for the category as a whole.
The e-commerce platform has witnessed massive growth over the last 10 years. As per the World Bank Group, in 2016, 3.41 billion people worldwide were active internet users, with the global B2C e-commerce market generating revenue of USD 2.26 trillion in 2017. The increased penetration of wireless broadband internet, rising adoption of smartphones and tablets, and an increasing number of social media users are providing consumers with access to various online forums and platforms on-the-go. These trends are empowering consumers, giving them the data to make more informed decisions before they make a purchase. This rise in digital consumerism is resulting in more consumers shopping via online grocery, thereby driving the growth of the market.
Within our online grocery industry analysis, we provide deep insights into the market landscape, its segments, and their market share. Our research experts segment this market by online grocery products, categories, and types of shoppers.
By product, the non-food products segment currently accounts for the majority online grocery market share and will continue to lead the food products segment over the next few years. The increasing adoption of online shopping for personal care, baby products, and household supplies in developing markets like India, China, Brazil, Russia, Turkey, and Malaysia are responsible for the segment's current dominance of the market. However, despite it's lower market share, the food products segment is still expected to grow at a CAGR of 17% by 2020.
Our online grocery market segmentation research offerings include:
We at Technavio, with our comprehensive understanding of the online grocery market, have been monitoring the latest industry trends and developments to create an in-depth portfolio of market research reports. These reports help our clients identify opportunities within the market and develop effective strategies to optimize their market positions. Our online grocery report offers the following insights: