The dark store market has seen considerable growth due to a variety of factors.
• The market size of dark stores has seen a significant surge recently. The forecast indicates growth from $23.33 billion in 2024 to $32.91 billion in 2025, equating to a compound annual growth rate (CAGR) of 41.0%.
The historical growth is due to factors like higher rates of online grocery purchases, the surge in e-commerce platforms, more smartphone usage, increasing need for quick and efficient online shopping as well as the effect of COVID-19 pandemic.
The dark store market is expected to maintain its strong growth trajectory in upcoming years.
• An exponential increase is anticipated in the dark store market size in the forthcoming years. The market is projected to escalate to a value of $128.78 billion in 2029, with a compound annual growth rate (CAGR) of 40.7%.
The projected growth during this forecast period can be credited to the surge in e-commerce platforms, increased urbanization, rising demand for grocery delivery services, expansion of dark store facilities beyond just groceries, and increased need for home delivery. Key trends during this forecast period encompass improved cold storage facilities for perishables, utilization of automation and robotics, integration with sophisticated logistics systems, the application of blockchain for a transparent supply chain, voice-enabled picking, and the use of augmented reality (AR) for navigation within the store.
The surge in internet grocery shopping is predicted to accelerate the development of the dark store market in the future. Purchasing food and household goods via online platforms, with the options for delivery or pickup, is the concept behind online grocery shopping. The growing convenience, time-saving aspects, advanced e-commerce technology, improved delivery services, and broader product selection are some of the reasons for the rise in online grocery shopping. By offering dedicated fulfillment centers which simplify inventory management and delivery efficiency, dark stores play a significant part in improving online grocery shopping, thereby guaranteeing swift and precise order completion for clients. For example, a report from US-based software development firm, Mercatus Technologies Inc., in July 2024 revealed U.S. online grocery sales hit $7.7 billion in 2024, denoting an 8.0% increase from 2023. Hence, the surge in online grocery shopping is fuelling the expansion of the dark store market.
The dark store market covered in this report is segmented –
1) By Category: Groceries, Meat, Dairy
2) By Age Group: Children, Adults, Elderly
3) By Ownership: Independently Owned Dark Stores, Chain-Owned Dark Stores
4) By Distribution Channel: In-Store Pickup, Curbside Pickup, Home Delivery
Subsegments:
1) By Groceries: Packaged Foods, Beverages, Fresh Produce, Frozen Foods
2) By Meat: Poultry, Beef, Pork, Seafood
3) By Dairy: Milk And Milk Alternatives, Cheese, Yogurt, Butter And Cream
Major companies operating in the dark store market are focusing on developing innovative solutions such as shared micro-fulfillment networks to enhance delivery speed, reduce costs, and improve last-mile logistics efficiency. A shared micro-fulfillment network is a system where multiple e-commerce companies share a centralized, automated fulfillment center to stock products closer to customers, enabling faster and more cost-effective local deliveries. For instance, in August 2024, Delhivery Limited, an India-based logistics and supply chain company, launched a network of multi-tenant dark stores for “rapid in city delivery” for ecommerce companies. Multi-tenant dark stores are shared warehousing facilities used by multiple e-commerce companies, where they store products for rapid, local delivery. These stores are designed to optimize inventory management and reduce delivery times, allowing several businesses to share operational costs while ensuring efficient fulfillment of online orders.
Major companies operating in the dark store market are:
• Walmart Inc.
• Amazoncom Inc.
• The Kroger Co
• Albertsons Companies Inc
• Auchan Retail International SA
• Uber Technologies Inc.
• Zalando SE
• BigBasket
• Flipkart Internet Private Limited
• Instacart
• Deliveroo
• Grab Holdings Limited
• Wincanton plc
• Swiggy
• Wolt Enterprises Oy
• Getir Perakende Lojistik AS
• Zepto
• Flink SE
• Dunzo Daily
• Ola Foods Private Limited
North America was the largest region in the dark store market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the dark store market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.