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

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.

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).