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India Online Grocery Market to Grow at CAGR of 33% through FY2027

Booming e-commerce industry and increasing disposable income to drive online grocery market of India in the forecast period.

According to TechSci report on, “India Online Grocery Market - By Region, Competition Forecast & Opportunities, FY2017 - FY2027”, India online grocery market is projected to grow with a CAGR of 33% in the forecast period, FY2023-FY2027 to reach a market value of USD26.63 billion by FY2027. India online grocery market growth can be attributed to increasing disposable income and better internet connectivity for the online ordering of groceries.

Rising urbanization and increasing working population are some of the key factors for the growth of online grocery market. Online grocery platforms offer fresh groceries and COVID-19 safety is another factor for the significant increase in adoption of online grocery.

In order to increase the consumer base, some companies are focusing on providing quick delivery services, especially in major metro cities. Companies such as JioMart, Grofers, etc., deliver the everyday-need consumer products within 2 hours of order received.

The number of orders is increasing tremendously after these companies introduced this format. Moreover, in India, various companies are adopting hyperlocal business models, under which they are collaborating with local retailers in the respective areas.

The Indian government is continuously taking several initiatives to promote e-commerce platforms. For instance, The Department for Promotion of Industry and Internal Trade (DPIIT) is aiming to use the Open Network for Digital Commerce (ONDC) to define standards for cataloguing, vendor finding, and pricing discovery in order to standardize the onboarding process of merchants on e-commerce platforms.

Similarly, in 2020, Minister of Commerce and Industry, encouraged start-ups to register themselves on the (Government E-Marketplace) GeM public procurement site and provide goods and services to government organizations and Public Sector Undertakings (PSUs). As a result of such initiatives, market players are encouraged to develop e-commerce platform-related services that will further fuel the online grocery market growth in India.

Browse over 20 market data Figures and 4 market Tables spread through 82 Pages and an in-depth TOC on "India Online Grocery Market"

India online grocery market is segmented based on product category, platform, regional distribution, and competitive landscape. Based on product category, the market is segmented into packaged food & beverages, personal care, household products, fruits & vegetables, & others.

Packaged food & beverages accounted for the dominant share of 42.01% in 2021 and the segment is projected to continue its leading position through FY2027. Food grains & pulses, snack, bread, dairy products and others are some of the frequently consumed products and are ordered on a daily basis, which translates to its higher share in the market.

Key market players operating in the online grocery market of India include:

·         Grofers India Private Limited

·         Innovative Retail Concepts Private Limited (BigBasket)

·         Amazon Retail India Private Limited

·         Flipkart Internet Private Limited

·         Paytm E-commerce Private Limited

·         Nature’s Basket Limited

·         Omnipresent Retail India Private Limited (Spencer's)

·         Future Retail Limited

·         Reliance Retail Limited

·         Godfrey Phillips India Limited (24SEVEN)

·         Bundl Technologies Private Limited

Many new entrants in the online grocery market hurried to capitalize on the customer demand during the COVID-19 outbreak. For instance, in May 2020, retail giant Reliance launched its own grocery platform ‘JioMart’ which offers grocery services in more than 200 towns across the country.

Moreover, in 2019, Flipkart launched ‘Supermart’, its online grocery platform. Other big companies are also investing in online grocery companies, which will further propel the growth of this market. For instance, in 2021, the Tata group, one of India's oldest conglomerates, acquired a majority stake of 64.3% in popular online grocer, BigBasket.

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“Over the last few years, demand for grocery products is growing at a robust pace, thereby creating huge opportunities for e-grocers. However, the India online grocery market is highly competitive, thereby the companies need to maintain the quality of the products being delivered. Moreover, packaging also plays a very crucial role in increasing the brand loyalty.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

India Online Grocery Market By Product Category (Packaged Food & Beverages, Personal Care, Household Products, Fruits & Vegetables, & Others (Pet Care, Baby Care, etc.)), By Platform (Mobile Application & Desktop Website), By Region, Competition, Forecast & Opportunities, FY2017-FY2027 has evaluated the future growth potential of India online grocery market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India online grocery market.


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