India online grocery market was valued USD3.95 Billion in FY2021 and is anticipated to project robust growth in the forecast period, FY2022-FY2027, with an impressive CAGR of 33.00% on account of changing lifestyle, rising health consciousness, increasing household income. Groceries provided by standalone e-commerce services, brick-and-mortar supermarkets, or grocery stores via online channels are considered under online groceries. They usually charge or provide free service for online deliveries. The market is mainly categorized in packaged food & beverages, personal care, household products, fruits & vegetables, and others.


Increasing working population, rising urbanization, busy lifestyle, better internet connectivity, the entry of offline grocery chains into online, and changing customer attitudes that demand greater convenience, product variety, safety/hygiene, and value are some of the major factors that are booming the market growth. Furthermore, domestic and international enterprises are improving their services in the country while competing to expand their market share and presence in the highly dynamic industry.


BigBasket, Grofers, Amazon Pantry, Flipkart Grocery, and JioMart are among the major online grocery retailers, while Nature's Basket, DMart, Easy Day, and Milk Basket are among the emerging retailers. Other factors supporting the India online grocery market include changing consumption patterns, the expansion of modern trade formats in top tier cities and rising disposable income.

 

Customers are increasingly inclined toward purchasing grocery products via online channels. By utilizing a simplified supply chain and a tech-enabled retail layer, these platforms have significantly improved the consumer's grocery shopping experience. Simultaneously, they have aided in the expansion of the supplier's customer reach. Furthermore, they sell products at significantly lower prices, provide more options, and offer doorstep delivery, all of which are desirable in today's market.


Furthermore, the COVID-19 pandemic has increased the demand for these services. During the outbreak, market participants were able to gain a large consumer base. For example, Grofers claims to have gained 18 lakh new subscribers during the lockdown period and retained more than 70% of those who used the site during the first month of the pandemic.

 

Retailers faced high demand, which they struggled to meet due to supply disruptions caused by transportation and staff inavailability during the lockdown. Retailers were only able to provide limited or no service due to a lack of inventory, transportation, and staff. Furthermore, due to lack of transportation options, online retailers stopped taking new orders. Many customers who were accustomed to purchasing food products online at their leisure were disappointed by this. Many online grocery retailers, including BigBasket, experienced brief outages.

 

Quick Delivery Services Drives the Market Growth

In order to increase their customer base, some businesses are focusing on providing quick delivery services, particularly in major metropolitan areas. For example, companies such as JioMart and Grofers deliver everyday-need consumer products within 2 hours of receiving an order. Since these companies implemented this format, the number of orders has skyrocketed. Furthermore, in India, several companies are implementing hyperlocal business models in which they collaborate with local retailers in their respective areas.

 

Rising Internet Penetration Fueling the Market Growth

Rapid urbanization is allowing a growing number of younger, "globally conscious" consumers with rising incomes and changing tastes and preferences to gain access to a diverse range of goods and services. Furthermore, internet penetration is increasing as the cost of data and mobile device prices fall. According to the Internet & Mobile Association of India, India has approximately 504 million active internet users, with 227 million in rural areas and 205 million in urban areas. As a result, this factor is expected to play a significant role in propelling the growth of this market.

 

Growing Investment and Developments Aids Market Growth

The players in the online grocery market are constantly focusing on improving their product in order to expand and improve their offerings. For example, Flipkart upgraded its grocery supply chain infrastructure in May 2021 to meet consumer demand and ensure safety across India. In 2021, it planned to expand its grocery fulfillment center capacity by more than 8 lakh square feet across Delhi, Kolkata, Chennai, Coimbatore, and Hyderabad. Similarly, Grofers, a grocery delivery start-up, entered the unicorn club in June 2021 after raising USD120 million from food delivery platform Zomato. In addition, Amazon announced the expansion of its 'Amazon Pantry' to over 300 cities across the country in 2020.


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Market Segmentation 

The India online grocery market is segmented based on product category, platform, region, and competitional landscape. Based on product category, the market is further fragmented into packaged food & beverages, personal care, household products, fruits & vegetables, & others (Pet Care, Baby Care, etc.). Based on platform, the market is bifurcated into mobile applications and desktop websites. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among north, south, west & east.


Company Profiles

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, etc., are among the major market players in the India platform that lead the market growth of the India online grocery market.

Attribute

Details

Market Size Value in FY2021

USD3.95 Billion

Revenue Forecast in FY2027

USD26.63 Billion

Growth Rate

33.00%

Base Year

FY2021

Historical Years

FY2017 – FY2021

Estimated Year

FY2022

Forecast Period

FY2023 – FY2027

Quantitative Units

Revenue in USD billion, and CAGR for FY2017-FY2021 and FY2022-FY2027

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

  • Product Category
  • Platform
  • Region
  • Company

Regional Scope

North, South, West & East

Key Companies Profiled

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, etc.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

Report Scope:

In this report, India online grocery market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • India Online grocery Market, By Product Category:
    • Packaged Food & Beverages
    • Personal Care
    • Household Products
    • Fruits & Vegetables
    • Others
  • India Online grocery Market, By Platform:
    • Mobile Application
    • Desktop Website
  • India Online grocery Market, By Region:
    • North
    • South
    • West
    • East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India online grocery market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

In case you don’t find what you are looking for, please get in touch with our custom research team at [email protected]

1.    Product Overview

2.    Research Methodology

3.    Executive Summary

4.    Voice of Customer

4.1.  Brand Awareness

4.2.  Frequency of Ordering

4.3.  Preferred Mode of Buying

4.4.  Factors Affecting Purchase Decision

4.5.  Challenges Faced Post Purchase

5.    India Online Grocery Market Overview

5.1.  India Online Grocery Market Vs. Offline Grocery Market

6.    India Online Grocery Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Product Category (Packaged Food & Beverages, Personal Care, Household Products, Fruits & Vegetables, & Others (Pet Care, Baby Care, etc.))

6.2.2.     By Platform (Mobile Application & Desktop Website)

6.2.3.     By Region

6.2.4.     By Company (FY2021)

6.3.  Market Map (Product Category, Region)

7.    India Online Packaged Food & Beverages Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Category (Food Grains & Pulses, Snacks, Bread & Bakery, Others (Dairy Products, Confectionery, Meat & Poultry Products, etc.))

7.3.  Pricing Analysis

8.    India Online Personal Care Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Category Face Care, Body Care, Hair Care & Others (Oral Care, Lip Care))

8.3.  Pricing Analysis

9.    India Online Household Product Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By Category Laundry, Kitchen & Others (Bathroom, Floor Cleaner, etc.)

9.3.  Pricing Analysis

10.  India Online Fruits & Vegetables Market Outlook

10.1.             Market Size & Forecast

10.1.1.  By Value

10.2.             Market Share & Forecast

10.2.1.  By Category (Fresh & Frozen)

10.3.             Pricing Analysis

11.  Supply Chain Analysis

12.  Market Dynamics

12.1. Drivers

12.2. Challenges

13.  Market Trends and Developments

14.  Policy & Regulatory Landscape

15.  India Economic Profile

16.  Impact of COVID-19 on India Online Grocery Market

17.  Competitive Landscape

17.1.             Grofers India Private Limited

17.2.             Innovative Retail Concepts Private Limited (BigBasket)

17.3.             Amazon Retail India Private Limited

17.4.             Flipkart Internet Private Limited

17.5.             Paytm E-commerce Private Limited

17.6.             Nature’s Basket Limited

17.7.             Omnipresent Retail India Private Limited (Spencer's)

17.8.             Future Retail Limited

17.9.             Reliance Retail Limited

17.10.          Godfrey Phillips India Limited (24SEVEN)

17.11.          Bundl Technologies Private Limited

18. Strategic Recommendations

In case you don’t find what you are looking for, please get in touch with our custom research team at [email protected]
  • Figure 1: India Online Grocery Market Size, By Value (USD Billion), 2017-2027F

    Figure 2: India Online Grocery Market Share, By Product Category, By Value, 2017–2027F

    Figure 3: India Online Grocery Market Share, By Platform, By Value, 2017–2027F

    Figure 4: India Online Grocery Market Share, By Region, By Value, 2021 and 2027F

    Figure 5: India Online Grocery Market Share, By Company, By Value, 2021

    Figure 6: India Online Grocery Market Map, By Product Category, Market Size (USD Billion) & Growth Rate (%), 2021

    Figure 7: India Online Grocery Market Map, By Region, Market Size (USD Billion) & Growth Rate (%), 2021

    Figure 8: India Online Packaged Food & Beverages Market Size, By Value (USD Billion), 2017-2027F

    Figure 9: India Export Statistics of Processed Vegetables in Quantity (In Metric Tons) and in Value (USD Million), FY2016 – FY2021

    Figure 10: India Online Packaged Food & Beverages Market Share, By Category, By Value, 2017–2027F

    Figure 11: India Online Personal Care Market Size, By Value (USD Billion), 2017-2027F

    Figure 12: Internet Penetration in Percentage (%) of India, 2015-2019

    Figure 13: India Urban Population as a Percentage of Total Population (%), 2015-2020

    Figure 14: India Online Personal Care Market Share, By Category, By Value, 2017–2027F

    Figure 15: India Online Household Products Market Size, By Value (USD Billion), 2017-2027F

    Figure 16: Break up of Rural-Urban Internet subscriber Base (Million), By Leading State/Union Territory in India, FY2020

    Figure 17: India Online Household Products Market Share, By Category, By Value, 2017–2027F

    Figure 18: India Online Fruits & Vegetables Market Size, By Value (USD Billion), 2017-2027F

    Figure 19: The Estimated Production of Major Crops, as per 3rd Advance Estimates, (Million Tons), 2021

    Figure 20: India Online Fruits & Vegetables Market Share, By Category, By Value, 2017–2027F

    List of Table:

    Table 1: India Packaged Food & Beverages Pricing Analysis (USD), 2021

    Table 2: India Personal Care Pricing Analysis (USD), 2021

    Table 3: India Household Products Pricing Analysis (USD), 2021

    Table 4: India Fruits & Vegetables Pricing Analysis (USD), 2021