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.
|
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Options
|
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|
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:
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).
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