Online grocery has surged rapidly as Covid‑19 accelerated adoption by several years, with growth now expected to exceed prepandemic forecasts through 2025 across major markets such as Australia, the United States, France, and Germany. While demand is strong, the channel suffers from dilutive economics, creating a shared challenge for grocers and consumer packaged‑goods suppliers. Although each side can take independent steps to improve profitability, the biggest gains will come from collaboration. Key priorities include reducing picking and delivery costs, improving online basket economics, tailoring fulfillment networks to local needs through varied models and partnerships, and enhancing the online customer experience to better recover added costs.

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