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The India - grocery market size is estimated to grow at a CAGR of 8.06% between 2022 and 2027. The market size is forecast to increase by USD 289.29 billion. This India grocery market report extensively covers market segmentation by platform (offline and online), product (food grains, bread bakery, and dairy products, fruits and vegetables, personal care, dry and baking products, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
The rise in disposable income among consumers in India is the key factor driving the India grocery market growth. The online grocery market in India is expected to grow due to factors such as the rising Internet penetration, the increasing number of mobile phone users, the rising preference for convenience and value-added services, and the growing awareness of the benefits of online shopping among Indian consumers. In addition, consumers in tier II and III cities such as Vadodara and Kanpur are shifting their preference from neighborhood convenience stores to supermarkets and hypermarkets with cheap prices because of increasing disposable income and rapid urbanization. Thus, these factors are expected to drive the growth of the India grocery market during the forecast period.
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An increase in the usage of flexible payment and delivery services is the primary trend in the India grocery market. Consumers were able to order groceries online and receive them directly from their doorstep without having to walk out of the house due to flexibility in payment and delivery services. These services allow customers to pay for their groceries on the Internet and deliver them to their doorstep, making this process much more convenient.
Moreover, with the growing use of flexible payment and delivery services, many online grocery stores have seen a significant increase in their business activity. This trend is expected to continue as people become aware of the benefits of these services. Hence, such factors are expected to drive the growth of the India grocery market during the forecast period.
Huge competition among offline retail stores and online channels is a challenge that affects the growth of the India grocery market. Online grocery delivery service providers are finding it difficult to compete with traditional grocers in India as most consumers are price-sensitive and very concerned with how the goods are delivered to them. Another major factor limiting the adoption of online grocery shopping is the occasional and limited availability of certain products in certain regions.
Moreover, physical stores are now turning to an omnichannel retail strategy to compete with e-commerce players. Innovative in-store technologies, such as using self-checkout terminals for fast checkout, are used to improve the shopping experience for the end customer. Such factors make the competition fierce between online and offline channels, which may impede the growth of the India grocery market during the forecast period.
The food grains segment is expected to dominate the India grocery market. According to the fourth preliminary production estimate released by the Ministry of Agriculture and Farmers' Welfare on August 12, 2021, India's total food grain production reached a record high of 315.7 million tonnes for the period 2021-2022, with rabi cereal production exceeding that of rabi. target. Various suppliers, such as Amazon Inc., Reliance Industries Limited, and Grofers India Pvt. Ltd., offer a wide range of food products and offer various discounts and offers. This factor is helping to maintain the dominance of the food grains segment thereby driving the growth of the India grocery market during the forecast period.
Bread, bakery products, and dairy products account for the second-largest share of the India grocery market in 2022. Bakery products such as bread have become a popular choice among consumers due to their high nutritional value and affordable price. The growing population and rising health awareness of consumers in the region are driving demand for dairy products such as milk, ice cream, cheese, and butter. Hence, the bakery, bread, and dairy products segment is expected to grow significantly, which in turn will drive the growth of the India grocery market during the forecast period.
The market share growth by the offline segment will be significant during the forecast period. The offline segment includes supermarkets, hypermarkets, convenience stores, discount stores, and retail stores. Supermarkets and hypermarkets are popular distribution channels for the India grocery market. The widespread popularity of organized retailing increases food sales. The large shelf space and storage areas of these stores hold a wide variety of grocery products and allow consumers to choose based on their favorite brands.
The offline segment was the largest segment and was valued at USD 499.24 billion in 2017.
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Convenience stores and discount stores are other forms of organized retail. These stores are smaller than hypermarkets and supermarkets in terms of capacity but offer a wide variety of groceries from different market players under one roof. Furthermore, new product launches as well as increased market players' promotional and marketing spending have resulted in creative and engaging displays at offline stores. Thus, such factors will boost the growth of the offline segment during the forecast period.
The convenience offered by online channels is projected to lead to substantial growth in this segment. Further momentum on the market will be provided by government support to digital literacy, and initiatives relating to the digital economy framework. People are increasingly looking for convenient and personalized online grocery platforms as their disposable income and expenses increase and their lifestyles become busier. Indian customers are increasingly starting to explore international cuisines and brands, which is driving the growth of the online India grocery market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The India grocery market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The grocery market report forecasts market growth by revenue and analyzes the latest trends and growth opportunities from 2017 to 2027.
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India Grocery Market Scope |
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Report Coverage |
Details |
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Page number |
133 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.06% |
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Market growth 2023-2027 |
USD 289.29 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.78 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amazon.com Inc., Avenue Supermarts Ltd., B L Agro Industries Ltd., Blink Commerce Pvt. Ltd., Brisam Retail Pvt. Ltd., Dookan Technologies s.r.o, Dunzo Digital Pvt. Ltd., Flora foods, Fresh to Home, GFOI retail Pvt. Ltd., Heritage Foods Ltd., Innovative Retail Concepts Pvt. Ltd., One97 Communications Ltd., Reliance Industries Ltd., RP Sanjiv Goenka Group, Satvika Bio Foods India Pvt. Ltd., SPAR Group Inc., Tata Sons Pvt. Ltd., Walmart Inc., and Zepto |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Product
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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