Australia Online Grocery and Quick Commerce Market

The Australia Online Grocery and Quick Commerce Market is valued at USD 5 billion, fueled by consumer demand for convenience and mobile shopping trends.

Region:Asia

Author(s):Shubham

Product Code:KRAA4745

Pages:80

Published On:September 2025

About the Report

Base Year 2024

Australia Online Grocery and Quick Commerce Market Overview

  • The Australia Online Grocery and Quick Commerce Market is valued at USD 5 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital platforms for grocery shopping, coupled with changing consumer preferences towards convenience and time-saving solutions. The rise in smartphone penetration and improved internet connectivity have further accelerated the shift towards online grocery shopping.
  • Key cities dominating this market include Sydney, Melbourne, and Brisbane. These urban centers benefit from a high population density, diverse demographics, and a strong infrastructure that supports efficient logistics and delivery systems. The concentration of tech-savvy consumers in these cities also drives demand for online grocery services, making them pivotal in the market landscape.
  • In 2023, the Australian government implemented regulations to enhance food safety standards in online grocery sales. This includes mandatory compliance with the Food Standards Australia New Zealand (FSANZ) guidelines, ensuring that all online grocery retailers adhere to strict hygiene and safety protocols. Such regulations aim to protect consumers and maintain the integrity of food products sold online.
Australia Online Grocery and Quick Commerce Market Size

Australia Online Grocery and Quick Commerce Market Segmentation

By Type:The market is segmented into various types, including Fresh Produce, Packaged Groceries, Beverages, Household Essentials, Personal Care Products, Pet Supplies, and Others. Among these, Fresh Produce is currently the leading sub-segment, driven by the increasing consumer preference for fresh and organic food options. The demand for healthy eating habits has surged, leading to a significant rise in online purchases of fruits, vegetables, and other perishable goods.

Australia Online Grocery and Quick Commerce Market segmentation by Type.

By End-User:The end-user segmentation includes Households, Restaurants, Cafes, and Corporate Offices. Households represent the largest segment, as the convenience of online grocery shopping appeals to busy families and individuals. The trend of cooking at home has gained momentum, especially post-pandemic, leading to increased online grocery orders from households seeking to stock up on essentials.

Australia Online Grocery and Quick Commerce Market segmentation by End-User.

Australia Online Grocery and Quick Commerce Market Competitive Landscape

The Australia Online Grocery and Quick Commerce Market is characterized by a dynamic mix of regional and international players. Leading participants such as Woolworths Group Limited, Coles Group Limited, Aldi Stores Australia, IGA (Independent Grocers of Australia), Amazon Australia, HelloFresh SE, Menulog, Uber Eats, DoorDash, Harris Farm Markets, Costco Wholesale Australia, Foodora, FreshDirect, Sendle, Youfoodz contribute to innovation, geographic expansion, and service delivery in this space.

Woolworths Group Limited

1924

Bella Vista, Australia

Coles Group Limited

1914

Collingwood, Australia

Aldi Stores Australia

2001

Minchinbury, Australia

Amazon Australia

2017

Sydney, Australia

HelloFresh SE

2011

Berlin, Germany

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Customer Acquisition Cost

Average Order Value

Customer Retention Rate

Delivery Time Efficiency

Pricing Strategy

Australia Online Grocery and Quick Commerce Market Industry Analysis

Growth Drivers

  • Increasing Consumer Demand for Convenience:The Australian online grocery market is experiencing a surge in consumer demand for convenience, with 60% of Australians preferring online shopping for groceries. This shift is driven by busy lifestyles, with 45% of consumers indicating they value time-saving solutions. The convenience factor is further supported by the Australian Bureau of Statistics reporting a 15% increase in online retail sales in the future, highlighting a growing trend towards digital shopping platforms.
  • Rise of Mobile Shopping:Mobile shopping is rapidly transforming the Australian grocery landscape, with 50% of online grocery purchases made via mobile devices in the future. The Australian Communications and Media Authority reported that 85% of Australians own smartphones, facilitating easy access to grocery apps. This trend is expected to continue, as mobile commerce is projected to account for 30% of total e-commerce sales in the future, further driving the online grocery market's growth.
  • Expansion of Delivery Services:The expansion of delivery services is a significant growth driver in the Australian online grocery market. In the future, the number of grocery delivery services is expected to increase by 25%, with major players like Coles and Woolworths enhancing their logistics capabilities. According to IBISWorld, the grocery delivery segment is expected to generate $1.5 billion in revenue in the future, reflecting the increasing consumer preference for home delivery options and the convenience they provide.

Market Challenges

  • Intense Competition:The Australian online grocery market faces intense competition, with over 50 players vying for market share. Major retailers like Coles and Woolworths dominate, but new entrants are emerging, increasing pressure on pricing and service quality. According to MarketLine, the competitive landscape is expected to intensify, with smaller players capturing 20% of the market in the future, challenging established brands to innovate and differentiate their offerings.
  • Supply Chain Disruptions:Supply chain disruptions pose a significant challenge to the online grocery sector in Australia. The COVID-19 pandemic highlighted vulnerabilities, with 40% of retailers reporting delays in product availability in the future. The Australian Logistics Council noted that logistics costs have risen by 10% due to increased demand and supply chain inefficiencies. These disruptions can lead to stock shortages, impacting customer satisfaction and overall market growth.

Australia Online Grocery and Quick Commerce Market Future Outlook

The future of the Australian online grocery and quick commerce market appears promising, driven by technological advancements and evolving consumer preferences. As more Australians embrace digital shopping, the integration of AI and machine learning will enhance personalized shopping experiences. Additionally, sustainability initiatives are expected to gain traction, with consumers increasingly favoring eco-friendly practices. The market is likely to see further innovations in delivery methods, including drone deliveries, which could revolutionize the logistics landscape in the future.

Market Opportunities

  • Growth of Subscription Services:Subscription services present a lucrative opportunity in the Australian online grocery market. With 30% of consumers expressing interest in subscription models for regular grocery deliveries, companies can capitalize on this trend. This model not only ensures customer loyalty but also stabilizes revenue streams, making it an attractive option for retailers looking to enhance their market presence.
  • Expansion into Rural Areas:Expanding into rural areas offers significant growth potential for online grocery retailers. Approximately 25% of Australians living in rural regions have limited access to grocery stores, creating a demand for online solutions. By targeting these underserved markets, companies can tap into a new customer base, driving sales and enhancing service accessibility across the country.

Scope of the Report

SegmentSub-Segments
By Type

Fresh Produce

Packaged Groceries

Beverages

Household Essentials

Personal Care Products

Pet Supplies

Others

By End-User

Households

Restaurants

Cafes

Corporate Offices

By Sales Channel

Direct-to-Consumer

Third-Party Platforms

Subscription Services

By Distribution Mode

Home Delivery

Click and Collect

In-Store Pickup

By Price Range

Budget

Mid-Range

Premium

By Product Origin

Local Products

Imported Products

By Consumer Demographics

Age Group

Income Level

Family Size

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Australian Competition and Consumer Commission, Food Standards Australia New Zealand)

Manufacturers and Producers

Distributors and Retailers

Logistics and Delivery Service Providers

Technology Providers

Industry Associations (e.g., Australian Food and Grocery Council)

Financial Institutions

Players Mentioned in the Report:

Woolworths Group Limited

Coles Group Limited

Aldi Stores Australia

IGA (Independent Grocers of Australia)

Amazon Australia

HelloFresh SE

Menulog

Uber Eats

DoorDash

Harris Farm Markets

Costco Wholesale Australia

Foodora

FreshDirect

Sendle

Youfoodz

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Australia Online Grocery and Quick Commerce Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Australia Online Grocery and Quick Commerce Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Australia Online Grocery and Quick Commerce Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Consumer Demand for Convenience
3.1.2 Rise of Mobile Shopping
3.1.3 Expansion of Delivery Services
3.1.4 Technological Advancements in Logistics

3.2 Market Challenges

3.2.1 Intense Competition
3.2.2 Supply Chain Disruptions
3.2.3 Regulatory Compliance Issues
3.2.4 Consumer Trust and Data Privacy Concerns

3.3 Market Opportunities

3.3.1 Growth of Subscription Services
3.3.2 Expansion into Rural Areas
3.3.3 Partnerships with Local Producers
3.3.4 Innovations in Payment Solutions

3.4 Market Trends

3.4.1 Increased Focus on Sustainability
3.4.2 Personalization of Shopping Experiences
3.4.3 Integration of AI and Machine Learning
3.4.4 Growth of Social Commerce

3.5 Government Regulation

3.5.1 Food Safety Regulations
3.5.2 E-commerce Taxation Policies
3.5.3 Consumer Protection Laws
3.5.4 Data Privacy Regulations

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Australia Online Grocery and Quick Commerce Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Australia Online Grocery and Quick Commerce Market Segmentation

8.1 By Type

8.1.1 Fresh Produce
8.1.2 Packaged Groceries
8.1.3 Beverages
8.1.4 Household Essentials
8.1.5 Personal Care Products
8.1.6 Pet Supplies
8.1.7 Others

8.2 By End-User

8.2.1 Households
8.2.2 Restaurants
8.2.3 Cafes
8.2.4 Corporate Offices

8.3 By Sales Channel

8.3.1 Direct-to-Consumer
8.3.2 Third-Party Platforms
8.3.3 Subscription Services

8.4 By Distribution Mode

8.4.1 Home Delivery
8.4.2 Click and Collect
8.4.3 In-Store Pickup

8.5 By Price Range

8.5.1 Budget
8.5.2 Mid-Range
8.5.3 Premium

8.6 By Product Origin

8.6.1 Local Products
8.6.2 Imported Products

8.7 By Consumer Demographics

8.7.1 Age Group
8.7.2 Income Level
8.7.3 Family Size

9. Australia Online Grocery and Quick Commerce Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Customer Acquisition Cost
9.2.4 Average Order Value
9.2.5 Customer Retention Rate
9.2.6 Delivery Time Efficiency
9.2.7 Pricing Strategy
9.2.8 Market Penetration Rate
9.2.9 Return on Marketing Investment (ROMI)
9.2.10 Customer Satisfaction Score

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Woolworths Group Limited
9.5.2 Coles Group Limited
9.5.3 Aldi Stores Australia
9.5.4 IGA (Independent Grocers of Australia)
9.5.5 Amazon Australia
9.5.6 HelloFresh SE
9.5.7 Menulog
9.5.8 Uber Eats
9.5.9 DoorDash
9.5.10 Harris Farm Markets
9.5.11 Costco Wholesale Australia
9.5.12 Foodora
9.5.13 FreshDirect
9.5.14 Sendle
9.5.15 Youfoodz

10. Australia Online Grocery and Quick Commerce Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government Procurement Policies
10.1.2 Budget Allocations for Food Supplies
10.1.3 Supplier Selection Criteria

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Logistics Infrastructure
10.2.2 Energy Efficiency Initiatives
10.2.3 Technology Upgrades

10.3 Pain Point Analysis by End-User Category

10.3.1 Supply Chain Inefficiencies
10.3.2 Quality Control Issues
10.3.3 Pricing Fluctuations

10.4 User Readiness for Adoption

10.4.1 Awareness of Online Grocery Options
10.4.2 Comfort with Digital Payment Methods
10.4.3 Accessibility of Technology

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Cost Savings
10.5.2 Customer Feedback Mechanisms
10.5.3 Opportunities for Service Expansion

11. Australia Online Grocery and Quick Commerce Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Cost Structure Evaluation

1.5 Key Partnerships Exploration

1.6 Customer Segmentation

1.7 Channels of Distribution


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Identification

2.4 Communication Strategies

2.5 Digital Marketing Approaches

2.6 Customer Engagement Tactics


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

3.3 Logistics Optimization

3.4 Inventory Management Solutions

3.5 Distribution Partnerships


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies

4.4 Consumer Price Sensitivity


5. Unmet Demand & Latent Needs

5.1 Category Gaps Identification

5.2 Consumer Segments Analysis

5.3 Emerging Trends Exploration

5.4 Feedback Collection Mechanisms


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service

6.3 Customer Support Strategies

6.4 Engagement through Social Media


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Customer-Centric Approaches

7.4 Innovation in Offerings


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup

8.4 Training and Development


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Innovations

9.2 Export Entry Strategy

9.2.1 Target Countries Identification
9.2.2 Compliance Roadmap Development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model Evaluation


11. Capital and Timeline Estimation

11.1 Capital Requirements Analysis

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships

12.2 Risk Mitigation Strategies


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability Strategies


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from Australian grocery and e-commerce associations
  • Review of government publications on online retail trends and consumer behavior
  • Examination of market studies and white papers from logistics and supply chain experts

Primary Research

  • Interviews with executives from leading online grocery platforms and quick commerce services
  • Surveys targeting consumers to understand purchasing habits and preferences
  • Focus groups with industry stakeholders, including suppliers and logistics providers

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including sales data and consumer surveys
  • Triangulation of insights from primary interviews with secondary research findings
  • Sanity checks conducted through expert panel reviews and feedback sessions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national e-commerce growth rates and grocery spending
  • Segmentation of the market by product categories and consumer demographics
  • Incorporation of trends in consumer preferences towards convenience and speed of delivery

Bottom-up Modeling

  • Collection of sales data from major online grocery retailers and quick commerce platforms
  • Analysis of average order values and frequency of purchases across different consumer segments
  • Estimation of operational costs and margins for various service offerings in the market

Forecasting & Scenario Analysis

  • Development of predictive models based on historical growth patterns and market dynamics
  • Scenario analysis considering economic factors, regulatory changes, and technological advancements
  • Projections of market growth under different consumer behavior scenarios through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Online Grocery Shoppers150Frequent online grocery buyers, varied demographics
Quick Commerce Users100Consumers using rapid delivery services for groceries
Logistics Providers80Operations Managers, Delivery Coordinators
Retail Executives70CEOs, Marketing Directors of grocery retailers
Consumer Behavior Analysts60Market Researchers, Consumer Insights Managers

Frequently Asked Questions

What is the current value of the Australia Online Grocery and Quick Commerce Market?

The Australia Online Grocery and Quick Commerce Market is valued at approximately USD 5 billion, reflecting significant growth driven by increased digital platform adoption and changing consumer preferences for convenience and time-saving solutions.

Which cities are the key players in the Australia Online Grocery Market?

What are the main types of products sold in the online grocery market in Australia?

How has consumer behavior shifted towards online grocery shopping in Australia?

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