Canada Online grocery Market Overview, 2028

The online food business in Canada has grown rapidly in recent years, driven by rising demand for convenience, time savings, and security in the midst of the COVID-19 outbreak. In Canada, there are several online grocery merchants, including large players such as Walmart, Loblaw, Metro, and Amazon. These merchants have made significant investments in their online grocery operations, extending their product offerings, boosting logistics and delivery capabilities, and refining their mobile applications and websites to provide a smooth shopping experience. Canadian consumers purchase groceries online throughout the week, with no specific time period being dominant. The most popular days for online grocery shopping in Canada are weekdays, with Tuesday being the most popular day followed by Wednesday and Thursday. This is likely due to consumers wanting to receive their orders before the weekend, and the convenience of being able to schedule a delivery or pickup during the workweek. In 2013, Loblaw, one of Canada's largest grocery retailers, launched its online grocery platform, PC Express, offering pickup and home delivery services in select locations. In 2016, Walmart Canada launched its online grocery platform, offering home delivery services in select cities.

According to the research report "Canada Online Grocery Market Overview, 2028," published by Bonafide Research, the Canada online grocery market is expected to grow at a CAGR of 15.94% from 2023 to 2028. Online grocery shopping has become more accessible and user-friendly with the use of smartphones and mobile apps. Customers may effortlessly shop for groceries, browse products, and place orders from anywhere at any time using their mobile devices. Consumers can save money by shopping for groceries online because many stores provide discounts and promotions for online orders. It also eliminates the need for customers to pay for transportation or parking when visiting physical establishments. Data and analytics can be used by online grocery sellers to personalise the shopping experience for their customers. Retailers may boost customer loyalty and happiness by tracking purchase history and preferences and offering personalised product recommendations and promotions with the majority of Canada's population leaving urban areas and a rise in the country's income level, this creates demand for online groceries in the country as well. Furthermore, online grocery shops can develop alliances and partnerships with other businesses to provide value-added services such as meal planning, recipe suggestions, and nutritional information. This can aid in increasing consumer engagement and loyalty. Furthermore, as people become increasingly concerned about the environmental impact of food production and waste, there is a shift towards more sustainable packaging and delivery techniques, as well as increased transparency regarding the origin and production of food. Furthermore, as people spend more time on their mobile devices, there is a shift towards mobile-first online grocery shopping, with shops offering optimised mobile apps and mobile-friendly websites.

Staples and cooking essentials are the food products that have high demand and frequent purchase rates. Furthermore, snacks and beverages are often considered impulse purchases, which mean that consumers are more likely to add them to their cart while browsing online for other grocery items. Staples and kitchen staples are some of the most frequently purchased items in online grocery shopping because they are items that consumers use on a regular basis. Flour, rice, sugar, pasta, cooking oil, spices, and seasonings are some of the most commonly purchased items in online grocery shopping in Canada. Furthermore, the meat and seafood segment is expected to grow at the fastest rate during the forecast period. Online platforms provide a broader selection of specialised meat and fish items, such as organic or sustainably derived products, that are not necessarily available at traditional brick-and-mortar retailers. Furthermore, there is a growing trend towards healthier and more sustainable food options, which is driving demand for organic, grass-fed, or free-range meat and seafood. Online platforms provide a broader selection of such products, contributing to the growth of the meat and seafood industries.

Based on delivery type, the market is segmented into home delivery and click and collects. With numerous online food shops now offering home delivery, the market is experiencing significant pricing rivalry. To attract clients and persuade them to select their service over competitors, retailers provide discounts and promotions on products, as well as free delivery for orders over a specific amount. Furthermore, some Canadian online grocery stores offer subscription models, which allow customers to pay a monthly or annual fee in exchange for free or subsidized delivery. This can be especially appealing to regular clients who rely on home delivery for their groceries. Furthermore, one of the primary reasons for the success of click and collect is its ease of use. Customers can order goods online and pick them up at a time and location that is convenient for them, rather than worrying about home delivery slots or waiting in queue for a delivery. Furthermore, many Canadian shops now provide click and collect from a variety of places, such as in-store pickup or collecting sites at train stations or parking lots. Customers may now pick up their groceries on the go without needing to visit a specific store.

Online grocery shopping is becoming increasingly popular in Canada, and demand might fluctuate throughout the year. However, certain periods of the year are more popular than others for online food shopping. The winter months, particularly during the holiday season, are among the most popular seasons for online food shopping in Canada. This is due to the fact that many individuals prefer to bypass congested supermarkets during the hectic Christmas season by shopping for food online and having it delivered to their homes. Other periods of the year when online grocery shopping is popular in Canada include when there is heavy snowfall or heat waves, when individuals may prefer to stay at home and order their groceries online.



Considered in this report
• Geography: Canada
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Canada Online Grocery market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Staples & Cooking Essentials
• Snacks & Beverages
• Breakfast & Dairy
• Fresh Produce
• Meat & Seafood
• Others

By Delivery Type
• Home Delivery
• Click and Collect

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Online Grocery industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.