India Online Grocery Market
Market Insights on India Online Grocery covering sales outlook, demand forecast & up-to-date key trends
India Online Grocery Market by Product Type, Payment Method & Region - Forecast 2022-2032
India Online Grocery Market Outlook (2022-2032)
[342 Pages Report] The India online grocery market size has been projected to grow from USD 4,540.0 Million in 2022 to USD 76,761.0 Million by 2032, at a CAGR of 32.7% through 2032.
Due to shifting consumer lifestyles, growing urbanization, and the tech-savvy generation that prefers online shopping, there has been witnessed a tremendous India online grocery market growth over the past few months.
As a result of rising disposable incomes and busier lifestyles, people are increasingly using customizable and useful online platforms for grocery shopping rather than visiting their local vendors, which escalates the India online grocery market key trends and opportunities.
|
Attributes |
Details |
|
India Online Grocery Market CAGR (2022-2032) |
32.7% |
|
India Online Grocery Market Size (2022) |
USD 4,540.0 Million |
|
India Online Grocery Market Size (2032) |
USD 76,761.0 Million |
The preference for online grocery product delivery became more pronounced after the COVID-19 outbreak. Due to social distance standards, consumers are turning to online grocery shopping because it is not only convenient but also a safer option which acts as the major reason for the surge in India online grocery adoption trends.
The India online grocery market is anticipated to expand significantly over the coming years. Thanks to initiatives like no contact delivery and online payment, consumers are increasingly buying their everyday groceries from a variety of online platforms which with positively impact the India online grocery adoption trends as well as India online grocery market future trends.
Due to safety worries about the coronavirus and a sizable percentage of people working from home, consumers' reliance on online platforms has significantly increased. This has consequently created a variety of India online grocery market opportunities along with the escalation of the adoption of online grocery in India catering to the increased demand for online grocery in India.
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What is Propelling the India Online Grocery Market?
Every industry in India has been forced to adapt and adopt practises that have proven successful in terms of safety and hygiene issues as a result of the establishment of the new normal therefore there is seen an increased adoption of online grocery in India. It takes a lot of time for people to observe social distance in public settings and even at traditional grocery stores as a result a boost in the India online grocery market opportunities have been witnessed.
Contrarily, consumers realised that contactless delivery and online grocery shopping not only save time but are secure. Additionally, people who work from home are doing their best to strike a balance between work and life and find it convenient to order their groceries online with a few taps from their mobile devices which up scales the India online grocery market future trends.
The India online grocery market is also anticipated to benefit from the availability of less expensive smartphones and the decline in data tariffs. Additional India online grocery market - driving factors include the rise of digital payments and increased internet usage. India's growing internet usage and increased awareness of the digital world are driving the India online grocery market growth.
Consumers now favour an Omni channel shopping experience due to increased smartphone accessibility and affordable data plans surging the India online grocery adoption trends.
What Restrains the India Online Grocery Market?
The India online grocery market is struggling due to a few intrinsic difficulties even though it is expanding at an accelerated rate.
Some supermarkets will probably struggle with higher operating costs, as with any new business. Customer dissatisfaction, managing perishable goods, and low profit margins are a few of the variables that could result in operating losses and may hamper the India online grocery market key trends and opportunities.
E-retailers need to implement clever management strategies and functional systems to deal with operating losses and increase profit. Their ability to satisfy their online customers would increase booming the adoption of online grocery in India.
Then there are concerns about delivery and storage. This issue could be made worse if you rely solely on delivery agents or other outside service providers soaring the India online grocery market opportunities.
Companies are training their delivery executives to provide improved customer satisfaction in an effort to mitigate this challenge. A major obstacle for the India online grocery market opportunities is big retailers' lack of interest in entering smaller towns. In smaller towns, behemoths are hesitant to offer online grocery hence hindering the India online grocery adoption trends.
The India online grocery market is extremely competitive as a result of their propensity to concentrate on major cities. The India online grocery market report contends that strong business models aimed at small towns are essential for e-retailers to develop in order to gain a competitive edge and shows the emerging trends of the India online grocery market.
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Talk to AnalystWhat are the Trends in the India Online Grocery Market?
The government's promotion of a framework for the digital economy and of digital literacy is likely to give the India online grocery market another boost in terms of India online grocery market growth.
Due to the availability of high-speed internet, better mobile device adaptability, and logistical simplicity, consumers who reside in Tier-I cities like Bangalore, Chennai, Mumbai, and Delhi are expected to drive the India online grocery market key trends and opportunities.
These consumers are more accustomed to online shopping. Since the government is gradually opening up more resources, concerns about the workforce and supply chain are becoming less of an issue. Therefore, consumers are choosing online grocery shopping as the best option due to factors like convenience, wise shopping, and hygiene concerns resulting in the surge of India online grocery market future trends along with the India online grocery market trends and forecasts.
Comparative View of Adjacent India Online Grocery Market
India Online Grocery Market:
|
Attributes |
India Online Grocery Market |
|
CAGR(2022-2032) |
32.7% |
|
Market Value(2027) |
USD 18681.45 Million |
|
Growth Factor |
Increased urbanisation |
|
Opportunity |
The younger generation that prefers to shop online |
|
Key Trends |
Increased disposable income and busier lifestyles |
Tofu Market:
|
Attributes |
Tofu Market |
|
CAGR (2022-2032) |
5.2% |
|
Market Value (2027) |
USD 3.65 billion |
|
Growth Factor |
Veganism is becoming more popular in developed nations. |
|
Opportunity |
Campaigns to lessen animal slaughter are expected to become a major driving force going forward. |
|
Key Trends |
Tofu is increasingly in demand because of its widespread use as a vegetarian substitute for meat and dairy products and as a source of high-quality protein. |
Food & Grocery Retail Market:
|
Attributes |
Food & Grocery Retail Market |
|
CAGR (2022-2032) |
3% |
|
Market Value (2027) |
USD 13521.93 billion |
|
Growth Factor |
The increase in growth can be primarily attributed to consumer polarisation, higher grocery spending brought on by COVID-19 lockdown, and increased online grocery sales volume. |
|
Opportunity |
New delivery models' emergence has accelerated market expansion as well. |
|
Key Trends |
Digitalization of the supermarket industry has been prompted by omnichannel mass merchandisers. |
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Which is the Leading Segment in the India Online Grocery Market by Product Type?
With an India online grocery market share of 14.4% in 2027, the staples and cooking essentials segment led the India online grocery market and was valued at USD 11,540.0 million for the forecast period 2022–2032. This sizeable portion is attributed to the frequent purchase of basic necessities like flour, food grains, and cooking essentials like refined oil that are needed by many people.
Rice, pulses, and lentils (dal) are regarded as staple foods in India households. Consumers have been stocking up on these necessities because they are worried that lockdown regulations may be implemented at any time due to the pandemic escalating the adoption of online grocery market in India. For the forecast period, the breakfast and dairy segment of the India online grocery market is projected to grow at a rate of 32.7% and be worth USD 15,243.7 million.
This can be attributed to the rise in popularity of dairy goods like yoghurt, milk, and curd. These items, which are daily necessities for people, have a shorter shelf life than other items. Additionally, these products must be consumed immediately and cannot be stored for a longer period of time.
Which is the Leading Segment in the India Online Grocery Market by Payment Method?
With a CAGR of 33.6% between 2022 and 2032, the India online grocery market’s online segment, which has been valued at USD 53,111.3 million during the forecast period, dominated. The rise in popularity of online payments is credited with the India online grocery market expansion.
A PPRO report states that as of January 2020, cards were used to pay for online purchases made in India. Cash and bank transfers were less common among India internet users in India. In addition, people are avoiding physical contact more than before COVID-19. Consumers are being compelled to use online payment methods like net banking, debit/credit cards, and Unified Payment Interface (UPI) due to the increasing adherence to social isolation practices meant to stop the spread of disease.
15.8% of India online grocery payment market is made up primarily of offline payment methods. During the forecast period, the India online grocery market’s offline segment, valued at USD 9,944.8 million, experienced a CAGR of 28.7%. This is primarily because cash-on-delivery methods continue to be popular because they help e-commerce merchants reach rural and unbanked customers and reduce payment loss issues caused by non-payment because the product is simply returned to the merchant if the recipient doesn't pay boosting the adoption of online grocery market in India.
Due to the security and privacy concerns with online payments, some customers in India's Tier-II and Tier-III cities continue to choose cash on delivery (COD) or offline payment methods impacting the India online grocery adoption trends. However, there has been a significant change in consumer shopping behaviour as a result of the country's response to the coronavirus pandemic, which is also boosting the India online grocery market expansion.
In order to limit the spread of the disease, major India online grocery market players are concentrating on providing contactless deliveries of necessities and are steadfastly urging customers to choose digital payment methods.
Which is the Leading Region in the India Online Grocery Market?
With a CAGR of 36.6% over the forecast period, North India is anticipated to have the fastest India online grocery market growth. The presence of several well-known companies in the region, including Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), Grofers India Pvt. Ltd., and Amazon India Pvt. Ltd., as well as the concentration of online shoppers in Bengaluru and Chennai, are credited with the region's online grocery market growth.
The most popular online grocer in South India cities like Hyderabad and Bangalore is Big Basket. The main driving forces behind the India online grocery market expansion have been the shifting consumer landscape and consumers growing accustomed to online shopping. With a CAGR of 33.5%, South India was the second fastest-growing region in the world of India online grocery market. Over the forecast period, the region is anticipated to keep up its lead.
This increase is the result of working women and technologically savvy millennials using online grocery platforms more frequently. West India is anticipated to grow at a CAGR of 29.3% during the forecast period, making it the third fastest-growing region in India online grocery market.
Many working professionals in West India cities like Pune and Mumbai prefer to order their groceries online because of the comfort and convenience it provides. These elements are anticipated to open up new India online grocery market growth opportunities for the West India online grocery market soon.
How Competition Influences the India Online Grocery Market?
Due to fierce competition between the players, the India online grocery market is fragmented. Key India online grocery market players are putting their efforts into expanding their geographic reach, partnering with other companies, merging and acquiring businesses, and increasing their India online grocery market presence. The India online grocery market participants can improve their offerings on both the domestic and international markets and expand their businesses geographically with the aid of these strategies.
The India online grocery market is largely reliant on factors like supply availability, delivery costs, and product delivery dependability, among others. As a result, the India online grocery market’s players are motivated by shifting consumer needs and preferences.
Recent Development in the India Online Grocery:
- New Launches:
In four more cities - Pune, Ahmedabad, Kolkata, and Chennai - Amazon India Pvt. Ltd. started operating its online grocery store Amazon Fresh in November 2020.
According to the business, the service was launched in these cities thanks to the growth of its specialised geographic network, which enables super-quick delivery services for groceries and daily necessities through the Amazon Fresh Store on Amazon.in.
How is the Start-up Ecosystem in the Coiled Tubing India Online Grocery Market?
Many new India online grocery market opportunities are arising as manufacturers invest in R&D to produce more sophisticated sodium nitrite solutions.
Participants in the India online grocery market are concentrating on research and development. They also pursue strategic India online grocery market growth initiatives like expansion, product launches, joint ventures, and partnerships in an effort to improve their India online grocery market position in the sector and expand their clientele.
Key Players
- Amazon India Pvt. Ltd.
- Godrej Nature's Basket Ltd.
- Grofers India Pvt. Ltd.
- Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
- Reliance Retail Ltd. (Reliance Fresh)
- Spencer's Retail
- Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
- UrDoorstep eRetail Pvt. Ltd.
Key Segments
By Product Type:
- Fresh Produce
- Breakfast & Dairy
- Snacks & Beverages
- Meat & Seafood
- Staples & Cooking Essentials
- Others
By Payment Method:
- Online
- Offline (Cash on Delivery)
By Region:
- South India
- North India
- West India
- East India
Frequently Asked Questions
What is the Growth Outlook for India Online Grocery Market?
The India online grocery market is likely to secure a CAGR of 32.7% through 2032.
What is the Current Valuation of the India Online Grocery Market?
The India online grocery market is likely to record a value of US$ 4,540.0 Million in 2022.
By 2032, how much can the India Online Grocery Market Grow?
The India online grocery market size is estimated to cross US$ 76,761.0 Million by 2032.
Table of Content
1. Executive Summary 1.1. India Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Countrys 3.6.2. By Key Countries 3.7. Countryal Parent Market Outlook 4. India Market Analysis 2017-2021 and Forecast, 2022-2032 4.1. Historical Market Size Value (US$ Mn) Analysis, 2017-2021 4.2. Current and Future Market Size Value (US$ Mn) Projections, 2022-2032 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. India Market Analysis 2017-2021 and Forecast 2022-2032, By Product Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Mn) Analysis By Product Type, 2017-2021 5.3. Current and Future Market Size Value (US$ Mn) Analysis and Forecast By Product Type, 2022-2032 5.3.1. Fresh Produce 5.3.2. Breakfast & Dairy 5.3.3. Snacks & Beverages 5.3.4. Meat & Seafood 5.3.5. Staples & Cooking Essentials 5.3.6. Others 5.4. Y-o-Y Growth Trend Analysis By Product Type, 2017-2021 5.5. Absolute $ Opportunity Analysis By Product Type, 2022-2032 6. India Market Analysis 2017-2021 and Forecast 2022-2032, By Payment Method 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Mn) Analysis By Payment Method, 2017-2021 6.3. Current and Future Market Size Value (US$ Mn) Analysis and Forecast By Payment Method, 2022-2032 6.3.1. Online 6.3.2. Cash on Delivery 6.4. Y-o-Y Growth Trend Analysis By Payment Method, 2017-2021 6.5. Absolute $ Opportunity Analysis By Payment Method, 2022-2032 7. Key Countries Market Analysis 7.1. India 7.1.1. Pricing Analysis 7.1.2. Market Share Analysis, 2021 7.1.2.1. By Product Type 7.1.2.2. By Payment Method 8. Market Structure Analysis 8.1. Competition Dashboard 8.2. Competition Benchmarking 8.3. Market Share Analysis of Top Players 8.3.1. By Countryal 8.3.2. By Product Type 8.3.3. By Payment Method 9. Competition Analysis 9.1. Competition Deep Dive 9.1.1. Amazon India Pvt. Ltd. 9.1.1.1. Overview 9.1.1.2. Product Portfolio 9.1.1.3. Profitability by Market Segments 9.1.1.4. Sales Footprint 9.1.1.5. Strategy Overview 9.1.1.5.1. Marketing Strategy 9.1.2. Godrej Nature's Basket Ltd. 9.1.2.1. Overview 9.1.2.2. Product Portfolio 9.1.2.3. Profitability by Market Segments 9.1.2.4. Sales Footprint 9.1.2.5. Strategy Overview 9.1.2.5.1. Marketing Strategy 9.1.3. Blink Commerce Private Limited 9.1.3.1. Overview 9.1.3.2. Product Portfolio 9.1.3.3. Profitability by Market Segments 9.1.3.4. Sales Footprint 9.1.3.5. Strategy Overview 9.1.3.5.1. Marketing Strategy 9.1.4. Paytm E-Commerce Pvt. 9.1.4.1. Overview 9.1.4.2. Product Portfolio 9.1.4.3. Profitability by Market Segments 9.1.4.4. Sales Footprint 9.1.4.5. Strategy Overview 9.1.4.5.1. Marketing Strategy 9.1.5. Reliance Fresh 9.1.5.1. Overview 9.1.5.2. Product Portfolio 9.1.5.3. Profitability by Market Segments 9.1.5.4. Sales Footprint 9.1.5.5. Strategy Overview 9.1.5.5.1. Marketing Strategy 9.1.6. Spencer's Retail 9.1.6.1. Overview 9.1.6.2. Product Portfolio 9.1.6.3. Profitability by Market Segments 9.1.6.4. Sales Footprint 9.1.6.5. Strategy Overview 9.1.6.5.1. Marketing Strategy 9.1.7. BigBasket 9.1.7.1. Overview 9.1.7.2. Product Portfolio 9.1.7.3. Profitability by Market Segments 9.1.7.4. Sales Footprint 9.1.7.5. Strategy Overview 9.1.7.5.1. Marketing Strategy 9.1.8. UrDoorstep eRetail Pvt. Ltd. 9.1.8.1. Overview 9.1.8.2. Product Portfolio 9.1.8.3. Profitability by Market Segments 9.1.8.4. Sales Footprint 9.1.8.5. Strategy Overview 9.1.8.5.1. Marketing Strategy 9.1.9. Green Cart 9.1.9.1. Overview 9.1.9.2. Product Portfolio 9.1.9.3. Profitability by Market Segments 9.1.9.4. Sales Footprint 9.1.9.5. Strategy Overview 9.1.9.5.1. Marketing Strategy 9.1.10. Aaram Shop 9.1.10.1. Overview 9.1.10.2. Product Portfolio 9.1.10.3. Profitability by Market Segments 9.1.10.4. Sales Footprint 9.1.10.5. Strategy Overview 9.1.10.5.1. Marketing Strategy 9.1.11. Eemli 9.1.11.1. Overview 9.1.11.2. Product Portfolio 9.1.11.3. Profitability by Market Segments 9.1.11.4. Sales Footprint 9.1.11.5. Strategy Overview 9.1.11.5.1. Marketing Strategy 9.1.12. Day to Day Fresh 9.1.12.1. Overview 9.1.12.2. Product Portfolio 9.1.12.3. Profitability by Market Segments 9.1.12.4. Sales Footprint 9.1.12.5. Strategy Overview 9.1.12.5.1. Marketing Strategy 9.1.13. Naturally Yours 9.1.13.1. Overview 9.1.13.2. Product Portfolio 9.1.13.3. Profitability by Market Segments 9.1.13.4. Sales Footprint 9.1.13.5. Strategy Overview 9.1.13.5.1. Marketing Strategy 9.1.14. Dilli Grocery 9.1.14.1. Overview 9.1.14.2. Product Portfolio 9.1.14.3. Profitability by Market Segments 9.1.14.4. Sales Footprint 9.1.14.5. Strategy Overview 9.1.14.5.1. Marketing Strategy 9.1.15. Kiranawalla 9.1.15.1. Overview 9.1.15.2. Product Portfolio 9.1.15.3. Profitability by Market Segments 9.1.15.4. Sales Footprint 9.1.15.5. Strategy Overview 9.1.15.5.1. Marketing Strategy 10. Assumptions & Acronyms Used 11. Research Methodology
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List of Tables
Table 1: Market Value (US$ Mn) Forecast by Country, 2017-2032 Table 2: Market Value (US$ Mn) Forecast by Product Type, 2017-2032 Table 3: Market Value (US$ Mn) Forecast by Payment Method, 2017-2032
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Figure 1: Market Value (US$ Mn) by Product Type, 2022-2032 Figure 2: Market Value (US$ Mn) by Payment Method, 2022-2032 Figure 3: Market Value (US$ Mn) by Country, 2022-2032 Figure 4: Market Value (US$ Mn) Analysis by Country, 2017-2032 Figure 5: Market Value Share (%) and BPS Analysis by Country, 2022-2032 Figure 6: Market Y-o-Y Growth (%) Projections by Country, 2022-2032 Figure 7: Market Value (US$ Mn) Analysis by Product Type, 2017-2032 Figure 8: Market Value Share (%) and BPS Analysis by Product Type, 2022-2032 Figure 9: Market Y-o-Y Growth (%) Projections by Product Type, 2022-2032 Figure 10: Market Value (US$ Mn) Analysis by Payment Method, 2017-2032 Figure 11: Market Value Share (%) and BPS Analysis by Payment Method, 2022-2032 Figure 12: Market Y-o-Y Growth (%) Projections by Payment Method, 2022-2032 Figure 13: Market Attractiveness by Product Type, 2022-2032 Figure 14: Market Attractiveness by Payment Method, 2022-2032 Figure 15: Market Attractiveness by Country, 2022-2032
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