Press release
Canada Online Grocery Market Size to Hit USD 5.31 Billion by 2031 as Digital Shopping Becomes Mainstream
Canada Online Grocery Market Size & Trends | Mordor Intelligence
The Canada online grocery market size is estimated at USD 3.84 billion in 2026, rising from USD 3.6 billion in 2025, and is forecast to reach USD 5.31 billion by 2031. This expansion reflects the steady growth of the Canadian online grocery market, supported by changing consumer habits and continuous investment by national grocery retailers.
Canadian shoppers increasingly rely on digital grocery platforms for time savings, broader assortments, and integrated loyalty benefits. As online grocery transitions from a convenience option to a routine shopping channel, the Canada online grocery market forecast remains positive across urban and suburban regions.
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Retail Automation and Omnichannel Strategies Drive Market Momentum
One of the most influential Canada online grocery market trends is the integration of e-commerce into physical store networks. Major grocery chains are embedding automation, robotic picking, and micro-fulfillment centers into store expansion plans to improve order accuracy and reduce delivery times.
Retailers are designing stores with dedicated staging zones for online orders, enabling smoother transitions between in-store and digital fulfillment. These investments strengthen operational efficiency while protecting long-term Canada online grocery market share.
Click-and-Collect Retains Strong Consumer Preference
Click-and-collect continues to account for a significant portion of online grocery transactions in Canada. This fulfillment model appeals to cost-conscious consumers by eliminating delivery fees while offering scheduling flexibility.
Loyalty-driven platforms are encouraging repeat usage and larger basket sizes, reinforcing the role of click-and-collect in sustaining Canada online grocery market growth. The model also allows retailers to balance last-mile costs while maintaining service reliability.
Same-Day and Rapid Delivery Expand Beyond Major Cities
Same-day grocery delivery is expanding beyond large metropolitan areas into secondary cities through partnerships with third-party delivery platforms. Automated fulfillment facilities are enabling faster turnaround times and improving coverage across provinces.
Rapid delivery options-often within one hour-are gaining popularity among urban consumers, particularly for top-up purchases. These services are expected to contribute incrementally to the Canada online grocery market forecast, especially in high-density regions.
Private Labels and Discount Banners Strengthen Online Value Proposition
Private-label products are playing an increasingly important role in online grocery assortments. Discount banners and retailer brands are attracting price-sensitive shoppers while improving margins for grocers.
Plant-based foods, sustainable packaging, and targeted promotions are helping private labels gain visibility online. Data-driven merchandising and cross-selling tools are further enhancing basket value, supporting the overall Canada online grocery market size expansion.
Canada Online Grocery Market Segmentation Snapshot
By Product Category
Fresh Produce
Packaged Food & Beverages
Meat & Seafood
Dairy & Eggs
Frozen Foods
Bakery & Prepared Meals
Household & Personal Care
By Order Fulfilment Model
Click & Collect (Curb-side)
Same-Day Home Delivery
Next-Day / Standard Delivery
Rapid (≤1-hour) Delivery
By Platform Type
Retailer-Owned Online Stores
Third-Party Marketplaces (Instacart, UberEats, etc.)
Meal-Kit & Subscription Services
By Region
Atlantic Region
Central Canada
Prairie Provinces
West Coast
North (Territories)
Explore Our Full Library of Food & Beverage Research Reports:
https://www.mordorintelligence.com/market-analysis/food-beverage?utm_source=openpr
Competitive Landscape Shaped by Scale and Logistics Capabilities
Large national retailers lead the Canada online grocery industry with extensive store networks, logistics infrastructure, and loyalty ecosystems. Key players include:
Loblaw Companies Limited - Nationwide PC Express network and private-label leadership
Sobeys Inc. - Automation-led fulfillment and rapid delivery expansion
Metro Inc. - Centralized automated distribution hubs
Costco Wholesale Canada Ltd. - Membership-based online grocery model
Walmart Canada Corp. - Large-scale omnichannel investments
Competition increasingly centers on fulfillment speed, pricing efficiency, and customer retention rather than assortment alone.
Outlook: Online Grocery Becomes Core to Canadian Retail
The Canada online grocery market is positioned for sustained expansion as digital shopping becomes embedded in everyday consumer behavior. Investments in automation, loyalty integration, and delivery innovation are improving both frequency and basket value.
As trust in online grocery continues to grow, the Canada online grocery market forecast points toward deeper penetration across regions and income groups, reinforcing its role as a permanent pillar of Canada's retail ecosystem.
For more insights on the Canada online grocery market, visit:
https://www.mordorintelligence.com/industry-reports/canada-online-grocery-market?utm_source=openpr
Industry Related Reports:
Online Grocery Market - The global online grocery market is set to expand rapidly, reaching USD 0.72 trillion in 2026, up from USD 0.65 trillion in 2025. By 2031, the market is projected to grow to USD 1.18 trillion, reflecting a CAGR of 10.47%. This growth is driven by wider internet access, growing consumer demand for convenience, and the continued expansion of e-commerce platforms offering fast and flexible grocery delivery options.
Get More Insights - https://www.mordorintelligence.com/industry-reports/online-grocery-market?utm_source=openpr
Canada Foodservice Market Size - The Canada foodservice market is estimated at USD 0.15 trillion in 2026 and is expected to more than double, reaching USD 0.32 trillion by 2031, registering a strong CAGR of 16.17%. Market growth is supported by changing consumer lifestyles, higher frequency of dining out, and increased adoption of digital ordering, takeaway, and delivery services across the foodservice industry.
Get More Insights - https://www.mordorintelligence.com/industry-reports/canada-foodservice-market?utm_source=openpr
Canada Dairy Market Growth - Canada's dairy market is projected to grow from USD 16.20 billion in 2025 to USD 17.06 billion in 2026 and further reach USD 22.07 billion by 2031, expanding at a CAGR of 5.29%. Growth is underpinned by steady demand for dairy products, rising health consciousness among consumers, and the growing presence of premium, functional, and value-added dairy offerings.
Get More Insights - https://www.mordorintelligence.com/industry-reports/canada-dairy-market?utm_source=openpr
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https://www.mordorintelligence.com/
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About Mordor Intelligence:
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.
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