Canada Instant Grocery Market Insights Forecasts to 2033

• The Canada Instant Grocery Market Size was valued at USD 11.05 Billion in 2023.
• The Market Size is growing at a CAGR of 19.34% from 2023 to 2033
• The Canada Instant Grocery Market Size is expected to reach USD 64.75 Billion by 2033

The Canada Instant Grocery Market Size is anticipated to exceed USD 64.75 Billion by 2033, growing at a CAGR of 19.34% from 2023 to 2033. The increasing e-commerce popularity, demand for rapid grocery delivery, adoption of numerous hyperlocal strategies, and increased use of smartphones & internet are driving the growth of the instant grocery market in Canada.     

Market Overview

Instant grocery refers to the delivery service offering immediate delivery, often delivered by drivers on electric bikes or scooters. Instant grocery have been embraced by consumers during the pandemic due to its convenience, making it one of the fastest-growing segments in grocery. There is a surging market expansion of instant grocery for household services by collaborating with local companies in the country. The implementation of data analytics in instant grocery stores is benefitting buyers and sellers, getting streamlined processes, greater efficiency, reduced operational costs, and increased online grocery sales. Further, the emergence of ultrafast delivery alternatives, subscription-based services, and the use of artificial intelligence to expedite procedures are providing lucrative market growth opportunities.  

Report Coverage

This research report categorizes the market for the Canada instant grocery market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada instant grocery market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada instant grocery market.

Driving Factors

E-commerce sales reached over US$2.34 billion in March 2022. By 2025, retail eCommerce sales are predicted to reach US$40.3 billion. In response to competition from websites, retailers are investing in digital platforms to reach customers spread across a large geographic area. The increasing e-commerce sales due to rising e-commerce users are significantly contributing to driving the market growth. The increasing demand for rapid grocery delivery due to ease of convenience and a busy lifestyle drives the market for instant grocery. Further, the increasing demand for time-saving services including hyperlocal grocery delivery services that include partnering with local groceries to customers is driving the market demand. In addition, the high number of smartphone users, easy accessibility to internet, and expanding application of mobile applications are contributing to drive the market growth.

Restraining Factors

The challenge of maintaining product quality and freshness during the delivery process is restraining the instant grocery market. According to a 2021 poll by Statista, almost 42% of Canadian consumers said that their biggest complaint with online grocery services was that products were out of stock. Expensive costs were mentioned by another 33% as a key deterrent to grocery shopping online. These issues associated with instant grocery are responsible for restraining the market growth.

Market Segmentation

The Canada Instant Grocery Market share is classified into product, food products, and non-food products.

• The food products segment dominated the market with the largest market share in 2023.

The Canada instant grocery market is segmented by product into food products and non-food products. Among these, the food products segment dominated the market with the largest market share in 2023. Cereals, fruits, vegetables, dairy products, and baked products are all available on delivery platforms in a single interface. The higher spending on groceries by consumers and pandemic-induced increased home cooking are contributing to driving the market in the food products segment.

• The staples & cooking essentials segment accounted for the largest revenue share of the Canada instant grocery in 2023.

The Canada instant grocery market is segmented by food products into breakfast & dairy, snacks & beverages, staples & cooking essentials, fresh produce, and others. Among these, the staples & cooking essentials segment accounted for the largest revenue share of the Canada instant grocery in 2023. Pasta, grains, canned goods, spices, and baking staples are the types of pantry essentials kept in home kitchen. The development of plant-based products for health-conscious consumers and an inclination towards online shopping are driving the market.

• The cleaning essentials segment dominated the Canada instant grocery market with the largest market share in 2023.       

Based on the non-food products, the Canada instant grocery market is divided into cleaning essentials, bath & body, home utilities, and others. Among these, the cleaning essentials segment dominated the Canada instant grocery market with the largest market share in 2023. The demand for products like cleaning solutions, disinfectants, and sanitizers has increased due to the growing emphasis on cleanliness. The availability of a wide range of products in digital platforms is responsible for propelling the market.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada instant grocery market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Walmart
• Amazon
• Loblaws
• Metro Richelieu Inc
• Real Canadian Superstore
• JOKR
• Zapp
• Glovo
• Dija
• Gopuff
• Uber Technologies Inc.
• Delivery Hero
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In July 2023, Walmart Canada launched Delivery Pass, offering customers access to unlimited, free next-day delivery on thousands of items for less than $2 per week.

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Canada Instant Grocery Market based on the below-mentioned segments:

Canada Instant Grocery Market, By Product

• Food Products
• Non-food Products

Canada Instant Grocery Market, By Food Products

• Breakfast & Dairy
• Snacks & Beverages
• Staples & Cooking Essentials
• Fresh Produce
• Others

Canada Instant Grocery Market, By Non-food Products

• Cleaning Essentials
• Bath & Body
• Home Utilities
• Others