What happened
Mordor Intelligence projects the online grocery market will reach USD 1.74 trillion by 2031, growing at a 10.47% compound annual growth rate from its USD 1.06 trillion valuation in 2026, following USD 0.96 trillion in 2025. This expansion is driven by the proliferation of dark stores and micro-fulfillment centres, AI-powered inventory and picking systems, and increasing demand for same-day delivery. Leading platforms, including Amazon Fresh, Walmart Grocery, and BigBasket, are employing automation and proximity-based fulfillment to reshape retail operations.
Why it matters
Procurement teams and logistics architects face immediate pressure to integrate advanced AI-powered fulfillment and dark store strategies. The projected market growth to USD 1.74 trillion by 2031, driven by a 10.47% CAGR from 2026, necessitates significant investment in automation and proximity-based logistics to meet escalating consumer demand for rapid delivery and subscription services. This structural shift moves operational models from traditional retail to digital-first, convenience-driven ecosystems, as seen with Loblaw's recent integration of Google Gemini for shopping.
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