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Online Grocery Market to Grow by USD 1.65 Trillion from 2024-2028, as E-commerce Adoption Soars with AI Impacting Market Trends – Technavio

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NEW YORK, Nov. 11, 2024 /PRNewswire/ — Report on how AI is redefining market landscape – The global online grocery market size is estimated to grow by USD 1.65 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  21.48%  during the forecast period. Increased popularity and adoption of e-commerce platform is driving market growth, with a trend towards growth in demand for functional food and beverages. However, end-user perception of online grocery shopping  poses a challenge.Key market players include Albertsons Companies Inc., Amazon.com Inc., Blink Commerce Pvt. Ltd., Bundl Technologies Pvt. Ltd., Coles Group Ltd., Costco Wholesale Corp., Flipkart Internet Pvt. Ltd., HOFER KG, Innovative Retail Concepts Pvt. Ltd., Koninklijke Ahold Delhaize NV, Ocado Group Plc, Rakuten Group Inc., Reliance Industries Ltd., Seven and i Holdings Co., Ltd., SPAR International, Target Corp., Tesco Plc, Transform Holdco LLC, Walmart Inc., and Woolworths Group Ltd..

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Online Grocery Market Scope

Report Coverage

Details

Base year

2023

Historic period

2018 – 2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 21.48%

Market growth 2024-2028

USD 1653.7 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

17.41

Regional analysis

APAC, Europe, North America, South America, and Middle East and Africa

Performing market contribution

APAC at 66%

Key countries

China, US, UK, Japan, and France

Key companies profiled

Albertsons Companies Inc., Amazon.com Inc., Blink Commerce Pvt. Ltd., Bundl Technologies Pvt. Ltd., Coles Group Ltd., Costco Wholesale Corp., Flipkart Internet Pvt. Ltd., HOFER KG, Innovative Retail Concepts Pvt. Ltd., Koninklijke Ahold Delhaize NV, Ocado Group Plc, Rakuten Group Inc., Reliance Industries Ltd., Seven and i Holdings Co., Ltd., SPAR International, Target Corp., Tesco Plc, Transform Holdco LLC, Walmart Inc., and Woolworths Group Ltd.

Market Driver

Online grocery market is witnessing significant trends as urbanization increases and consumers seek convenience and time-saving benefits. Grocers are adapting to this shift by offering online payments and contactless delivery. Small-scale grocers and food-delivery platforms are entering the scene, bringing competition and variety. Service fees, discounts, and delivery options are key factors influencing customer loyalty. Brands are focusing on quality milk products, doorstep delivery, and easy, hassle-free experiences. E-commerce technology, including mobile applications, logistics, and secure payment gateways, is driving growth. Internet penetration and accessibility are essential for online shopping, with specialty products, international goods, and dietary options appealing to unique preferences. Faster deliveries, reliable deliveries, and cashback offers are essential for customer satisfaction and repeat purchases. Tech-savvy consumers demand efficient delivery logistics and user-friendly interfaces. Fresh produce, RTE food, snacks, and beverages are popular categories, with organic and locally sourced options gaining popularity. E-commerce platforms are enhancing the shopping experience with predictive analytics, demand forecasting, and route optimization. Busy lifestyles and health-conscious choices are driving the market for instant delivery, scheduled deliveries, and subscription services. 

Functional food and beverages, recognized for their health advantages, are increasingly popular among consumers globally. These products offer benefits such as enhanced immunity, improved mental strength, heart rate regulation, digestive health, hydration, and electrolyte replenishment. Consumers are prioritizing their health and investing in non-traditional fitness activities, leading in demand for functional food and beverages as a healthy nutrition source. However, not all of these products are readily available at traditional retail stores. As a result, online grocery markets have become a go-to destination for consumers seeking convenient access to a wide range of functional food and beverage options. 

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Market Challenges

Online grocery market is witnessing significant growth due to urbanization and the convenience of doorstep delivery. However, challenges persist in areas like online payments, contactless delivery, and brand awareness for small-scale grocers. Grocers and food-delivery platforms face hurdles in implementing secure payment gateways and ensuring quality of milk products and fresh produce. Discounts, delivery options, and service fees are crucial factors influencing customer choice. Digital platforms offer time-saving benefits, but challenges in logistics, user-friendly shopping experience, and reliable deliveries remain. E-commerce technology, including mobile applications and AI, is transforming the industry, with faster deliveries, cashback offers, and loyalty programs enhancing customer satisfaction. High-speed internet and last-mile delivery solutions are essential for efficient supply chain management. Traditional retailers must adapt to tech-savvy consumers’ preferences for convenience, freshness, and variety.The global online grocery market is experiencing steady expansion, yet challenges persist in altering the mindset of a significant consumer base. With food items being a major concern, end-users seek flawless and satisfying purchases. The preference for traditional grocery shopping remains strong due to the tangible experience it offers. Consumers express concerns over product quality, particularly freshness, which is crucial for perishable goods. Vendors face hurdles in creating a positive impact on consumers’ perceptions and establishing trust in the online grocery space.

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Segment Overview 

This online grocery market report extensively covers market segmentation by  

Product 1.1 Food products1.2 Non-food productsType 2.1 One time customers2.2 SubscribersGeography 3.1 APAC3.2 Europe3.3 North America3.4 South America3.5 Middle East and Africa

1.1 Food products-  The food product segment significantly contributes to the revenue generated from online grocery sales. Consumers prefer buying food products online due to several reasons. These include the option for customization and personalization, convenience, swift delivery, and return policies. Online retail channels offer quality and originality checks, making it easier for consumers to ensure they are getting authentic products. Leading packaged food producers, such as Nestle, Danone, PepsiCo, Mars, Coca-Cola, Kraft-Heinz, Abbott, and Mondelez, have a strong online presence, providing consumers with a wide range of brand options. The availability of smartphone apps from these manufacturers and retailers further enhances the shopping experience. The pandemic has accelerated the shift towards online grocery shopping, with retailers like Costco reporting over 440% increase in same-day delivery sales in Q2 2020. These factors are expected to drive growth in the online grocery food product segment.

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Research Analysis

Online grocery delivery has revolutionized the way we shop for household essentials and household products. With the widespread use of the internet and digital platforms, grocers now offer convenient time-saving benefits for urban consumers. Ordering items online allows for contactless payment options, ensuring a safe and hygienic shopping experience. The use of artificial intelligence (AI) and machine learning (ML) in supply chain management ensures a wide product selection and the freshness of items. Small-scale grocers have also joined the digital revolution, offering organic and locally sourced groceries for tech-savvy consumers. Delivery options range from contactless curbside pick-up to drone deliveries, making grocery shopping more accessible than ever before. Discounts and deals add to the appeal, making online grocery delivery a popular choice for busy individuals.

Market Research Overview

Online grocery shopping is a convenient and time-saving solution for urban consumers, allowing them to order essential items online and receive doorstep delivery. Grocers have embraced e-commerce technology, offering user-friendly digital platforms for ordering milk products, fresh produce, RTE food, snacks and beverages, and even international goods and dietary options. Contactless delivery ensures a hassle-free experience, with secure payment gateways and cashback offers, loyalty programs, and subscription models enhancing customer satisfaction and repeat purchases. Logistics and last-mile delivery solutions, such as delivery drones and automated vehicles, ensure faster and reliable deliveries. Small-scale grocers and food-delivery platforms have joined the fray, offering a wide range of specialty products and unique preferences. E-commerce platforms provide easy access to a variety of products, enabling price comparison, product reviews, and smartphone usage for on-the-go shopping. Efficient supply chain management, predictive analytics, and demand forecasting have become essential for grocers to meet the needs of tech-savvy consumers. Freshness and quality are maintained through local fulfillment centers and inventory management. The scheduled deliveries segment, subscription services, and hybrid marketplaces cater to busy lifestyles and health-conscious consumers seeking RTE choices, organic options, and plant-based alternatives. Artificial intelligence (AI) and machine learning (ML) are transforming the online grocery market, providing personalized recommendations and enhancing the overall shopping experience. Traditional retailers are adapting to the digital age, offering online transactions, instant delivery, and varied delivery options to remain competitive. The future of grocery retail lies in the seamless integration of e-commerce technology, user-friendly interfaces, and efficient delivery logistics.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductFood ProductsNon-food ProductsTypeOne Time CustomersSubscribersGeographyAPACEuropeNorth AmericaSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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Northern Hemisphere Heat Drives Demand for Cooling and Sun-Protection Products on Yiwugo

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YIWU, China, July 24, 2026 /PRNewswire/ — Yiwugo.com, the official website of the Yiwu Commodity Market, is the largest commodity wholesale market in the world. The final whistle may have blown on the World Cup, but the intense heat gripping the Northern Hemisphere shows no sign of letting up. Europe has experienced unusually hot weather this year, sparking not only a surge in demand for air conditioners but also a boom in portable handheld fans. Merchants on Yiwugo say that in previous years, European customers would begin placing orders in March or April and take their time completing their annual procurement. This year, however, the purchasing season has stretched well into summer, with a flood of new buyers coming in, most of them looking for small handheld fans. With customers eager to capitalize on the peak summer season, delivery timelines have also become significantly tighter. Whereas orders in previous years could generally be fulfilled within a month, merchants are now frequently being asked to deliver within about a week, leaving manufacturers scrambling to keep pace with demand.

Lingpan Official Flagship Store has specialized in the production and sales of small fans, insulated cups, and related products for 15 years. This summer, demand from European customers for high-speed small fans has risen sharply, accompanied by urgent delivery requirements. Many customers began requesting shipment just one week after placing their orders, hoping the products would arrive in time for the World Cup and the ongoing heatwave across Europe. One long-standing European customer purchased only five models of small fans from Lingpan last year. Anticipating stronger demand ahead of this summer, the customer expanded the order to 10 models. The first shipment sold out soon after arriving at port, prompting several subsequent repeat orders. European buyers have shown particular interest in high-speed cooling fans and placed great requirements on product quality. So far this year, Lingpan’s fan sales have more than doubled compared with the same period last year, with total purchases reaching approximately RMB 1 million.

Beyond Europe, the owner of Lingpan, Ling Pan pointed out that the Indian market has also undergone significant changes over the past two years. Indian customers are showing great interest in panda-shaped fans, drinking cups, and related products. Procurement volumes among many Indian buyers have increased substantially, with average annual purchases now reaching several hundred thousand yuan.

Unlike European countries grappling with sudden heat waves, Asian markets such as Japan and South Korea, where summers are consistently hot and air conditioners and fans are already everyday essentials, have shown much stronger demand for sun-protection products. From April 1, 2026 to date, sales of sun-protection masks on Yiwugo have increased by 31.6% YoY, while sales of sun-protection face shields surged by 72.42% and sun hats rose by 8.1%.

Chen Jia, a Yiwugo merchant, has engaged in the production and sales of sun-protection masks and sun-protection face shields for eight years. Chen operates the Xiao Zhen and Xiao Mian Sun-Protection Products Workshop in District 4 of the Yiwu International Trade Market. In recent years, the company has customized cooling nylon fabrics for customers in Japan and South Korea. Sun-protection masks and sun-protection face shields made from this material not only offer UPF 50+ protection, but also maintain a more structured shape and are less susceptible to snagging or deformation. Their protective performance remains effective after routine washing, and the products can last for more than five years under normal use.

In 2024, a TV shopping operator from South Korea contacted Xiao Zheng and Xiao Mian through Yiwugo and began placing orders after inspecting the products in person. Over the following two years, the company continued to improve the fitness and design of its sun-protection products. It introduced sun-protection face shields with breathable mesh panels and incorporated soft supports around the nose area to prevent the masks from rubbing against lipstick. These product upgrades have steadily driven up customer ratings on the client’s store. Annual procurement, initially valued at around RMB 300,000, has risen year by year, and the company has since developed into a recognized brand in the local market.

Persistent heat across the Northern Hemisphere has been creating new forms of cross-border consumer demand while enabling Yiwugo merchants to keenly capture shifts in overseas markets. From the strong sales of small portable fans in Europe to the rising demand for functional sun-protection products in Japan and South Korea, the diversity of orders reflects both consumers’ need for relief from extreme heat and the ability of Yiwu manufacturers to strengthen their presence in global markets through product innovation and rapid fulfillment. Faced with a rapidly changing international market, many merchants are continuing to refine product designs, upgrade fabric techniques, and enhance supply efficiency. By leveraging Yiwugo to broaden their export channels, they are keeping pace with overseas consumption trends and capitalizing on the expanding market for cooling and sun-protection products, turning the summer heat into new momentum for cross-border trade.

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Snorkel AI Highlights First Wave of Open Benchmarks Grants Projects

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SAN FRANCISCO, July 24, 2026 /PRNewswire/ — Snorkel AI today highlighted the first group of projects supported through Open Benchmarks Grants, a $3 million commitment to support open-source datasets, benchmarks, and evaluation research.

Launched in February 2026, Open Benchmarks Grants has received hundreds of applications from researchers, labs, and engineers working to address a growing challenge: AI systems are advancing faster than the field’s ability to rigorously measure their performance on realistic, consequential work.

“From complex environments and huge autonomy horizons to rich, sophisticated outputs, these projects tackle some of the field’s hardest evaluation challenges,” said Fred Sala, a member of the Open Benchmarks Grants steering committee and assistant professor at the University of Wisconsin–Madison. “I’m excited to see the broader research community use, validate, and build on them.”

Open Benchmarks Grants provides selected teams with funding, expert data development support, research and engineering collaboration, and platform resources. Supported projects include:

Frontier-Bench (formerly Terminal-Bench 3.0), developed with Laude Institute and the Harbor community, is a harder, more domain-diverse successor to Terminal-Bench 2.1 — built in the open, task by task, under continuous adversarial review.Agents’ Last Exam, developed with UC Berkeley RDI and the RDI Foundation, evaluates agents on long-horizon, economically valuable professional workflows. It spans 55 sub-industries and includes more than 1,500 tasks toward a 5,000-task target, sourced and validated by more than 300 industry experts.OSWorld 2.0, developed with XLANG Lab, evaluates computer-use agents on 108 long-horizon workflows across 31 self-hosted web environments and professional desktop applications.Continual Learning Bench, developed with UC Berkeley SkyLab and the University of Wisconsin–Madison, measures whether agents genuinely improve across sequential, stateful tasks.SlopCode Bench, developed with the University of Wisconsin–Madison, measures how code quality degrades as coding agents repeatedly modify and extend their own solutions.Terminal-Bench 2.1, developed with Stanford University, Laude Institute and the Harbor community, evaluates agents on challenging work in terminal environments. The release corrected 28 tasks and introduced continuous validation.

With support from Open Benchmarks Grants, Terminal-Bench Science is also now in development, extending the Terminal-Bench framework to computational research workflows across the life, physical, earth, and mathematical sciences.

Beyond the grants program, Snorkel led the development of Senior SWE-Bench with the research teams at Princeton University and the University of Wisconsin–Madison. The benchmark evaluates coding agents on senior-level engineering work, including implementing features from realistic instructions, investigating bugs that require runtime analysis, and producing code that follows existing codebase conventions.

Open Benchmarks Grants was established with support from Hugging Face, Prime Intellect, Together AI, Factory, Harbor, and PyTorch. Applications remain open and are reviewed on a rolling basis.

Learn more and apply for a grant at benchmarks.snorkel.ai.

About Snorkel AI
Snorkel AI is the frontier AI data lab, helping teams build the data and environments behind high-performing frontier and agentic AI. We combine technology with research-driven AI data development to create datasets, benchmarks, evals, and custom solutions for real-world AI systems. Founded out of the Stanford AI Lab in 2019, Snorkel works with leading AI labs and enterprises to move from better data to better outcomes. 

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Payzli Vaults to No. 3 on Tampa Bay’s Fast 50, Up From No. 22 in One Year

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Payments technology company, Payzli earns a second consecutive Fast 50 ranking, crediting the climb to accelerating partner and merchant growth on its proprietary technology stack.

TAMPA, Fla., July 24, 2026 /PRNewswire/ — Payzli, the partner-first payments technology company, has been named the No. 3 fastest-growing company in the region on the Tampa Bay Business Journal’s 2026 Fast 50 – a 19-spot climb from its No. 22 debut last year, and the company’s second consecutive year on the list.

The ranking was announced July 23 at the Tampa Bay Business Journal’s Fast 50 event in Tampa, where Co-Founder and Chief Revenue Officer Naim Hamdar accepted the award alongside members of the Payzli team.

Payzli attributed its growth to a compounding effect: a national network of ISOs, agents and ISVs bringing merchants onto a technology platform Payzli built and operated in-house. 

That platform rests on three proprietary pillars:

Payzli Connect: the company’s payment CRM and merchant-and-partner dashboard, giving agents and ISOs daily residuals visibility and giving merchants a single place to run their account.Payzli POS: AI-powered point-of-sale and business software purpose-built for service businesses, including salons, med spas, wellness studios, and independent operators.Payzli Transact: an online payment gateway built on Visa Platform Connect through Payzli’s partnership with Visa Acceptance Solutions.

The Visa Acceptance Solutions partnership is central to how Payzli frames its credibility: rather than assembling a growth story on top of borrowed infrastructure, the company processes on rails backed by one of the most established networks in the industry alongside Fiserv and TSYS – a point that matters to the partners and merchants deciding where to place their volume.

“A second year on this list, and a jump to No. 3, isn’t about one good quarter. It’s about a network deciding to build with us and stay,” said Naim Hamdar, Co-Founder and Chief Revenue Officer of Payzli. “Every rank on this list represents partners we’ve earned and merchants who trust us to run their payments. We built the technology in-house so we could keep the promises the industry usually breaks: nothing hidden, a real person in reach, and daily residual visibility our agents can actually count on. That’s what this ranking measures and it’s why we’re doing it all, for the joy of business.”

“They say nothing in Tampa moves fast except the afternoon thunderstorms, so making the Fast 50 two years running feels pretty good,” said Kapil Pershad, Co-Founder and Chief Technology Officer of Payzli. “In all seriousness, this is a credit to our team and the businesses that trust us to power their growth.”

The Fast 50, produced by the Tampa Bay Business Journal, recognizes the fastest-growing private companies in the Tampa Bay region. Payzli’s return to the list and its move into the top three reflects a merchant-first product suite and a rapidly expanding national partner network across the payments and embedded-finance landscape.

About Payzli

Payzli is an end-to-end payments technology partner that makes accepting payments simpler and affordable for businesses of all sizes and risk levels. Founded in 2020 and headquartered in Tampa, Florida, Payzli brings together in-person processing, an advanced online gateway, AI-powered point of sale, and mobile and contactless payments – backed by its own technology, honest pricing, and dedicated human support. Built partner-first, Payzli equips ISOs, agents, developers, and independent software vendors to grow, with direct integrations to major processing platforms, in-house underwriting, a flexible credit policy, a Visa Acceptance Solutions foundation partnership, and sponsor-bank backing from Esquire Bank, a NASDAQ-listed strategic investor in Payzli. For more information, email partners@payzli.com or visit payzli.com.

Payzli is a registered trademark of United Payment Systems LLC. United Payment Systems LLC is a registered ISO of Esquire Bank (Jericho, NY), Commercial Bank of California (Irvine, CA), and KeyBank, National Association (Cleveland, OH).

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