India Grocery Market Analysis, Size, and Forecast 2025-2029

India Grocery Market Size 2025-2029

The india grocery market size is valued to increase by USD 352.8 billion, at a CAGR of 8.5% from 2024 to 2029. Rapid growth in m-commerce will drive the india grocery market.

Major Market Trends & Insights

• By Platform - Offline segment was valued at USD 433.40 billion in 2022
• By Product - Food grains segment accounted for the largest market revenue share in 2022
• CAGR from 2024 to 2029 : 8.5%

Market Summary

• The Indian grocery market is characterized by its dynamic nature and increasing complexity, driven by shifting consumer preferences and technological advancements. The sector's growth is fueled by the expanding middle class, urbanization, and the rise of e-commerce platforms. Functional foods and beverages, catering to health-conscious consumers, are gaining significant traction. Despite the convenience and time-saving benefits of online grocery shopping, end-users exhibit mixed perceptions. Some appreciate the ease and selection offered, while others express concerns over quality, trust, and logistical challenges. As a result, traditional brick-and-mortar stores continue to dominate the market, but e-commerce players are making inroads through strategic partnerships and innovative offerings.
• Innovative technologies like artificial intelligence, machine learning, and automation are being employed to streamline operations, enhance customer experience, and improve supply chain efficiency. The sector's future direction lies in seamless omnichannel experiences, personalized offerings, and a focus on sustainability and ethical sourcing. The Indian grocery market is poised for continued evolution, presenting both opportunities and challenges for businesses.

What will be the Size of the India Grocery Market during the forecast period?

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How is the Grocery in India Market Segmented ?

The grocery in india industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Platform
  • Offline
  • Online
• Product
  • Food grains
  • Bread bakery and dairy products
  • Fruits and vegetables
  • Personal care
  • Others
• Method
  • Online payments
  • Cash on delivery
• Geography
  • APAC
    • India

By Platform Insights

The offline segment is estimated to witness significant growth during the forecast period.

In India's dynamic grocery market, the organized retail sector, including supermarkets and hypermarkets, is experiencing significant growth. These distribution channels, which accommodate vast shelf spaces and storage areas, cater to consumers' increasing preference for a diverse range of grocery products and trusted brands. Supermarkets and hypermarkets, with their one-stop shopping experience, offer consumers the convenience of accessing various product categories under a single roof, a luxury not typically available in small shops. Moreover, these retailers employ various strategies to boost sales, such as discounts, loyalty programs, and promotional offers. As of 2021, organized retail accounts for approximately 22% of the overall the market, and this number is expected to rise as consumers continue to embrace the benefits of modern retail technology solutions, such as online grocery delivery, data analytics dashboards, and pricing strategies software.

Additionally, retailers are focusing on improving supply chain visibility, cold chain logistics, and warehouse management systems to reduce food waste and ensure food safety regulations are met. The integration of retail analytics software, product traceability systems, and sustainable packaging practices further enhances the shopping experience while promoting efficiency and transparency.

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The Offline segment was valued at USD 433.40 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The Indian grocery market is witnessing significant transformation as technology, data analytics, and sustainable practices reshape the industry landscape. With the impact of technology on grocery retail gaining momentum, Indian retailers are embracing digital solutions to enhance efficiency and customer experience. One such area of focus is the role of data analytics in grocery retail, which is enabling retailers to gain valuable insights into consumer behavior and optimize their operations. In the realm of perishable goods, efficient cold chain solutions are essential to maintain product quality and reduce wastage. Improving grocery supply chain visibility and optimizing last mile delivery are key strategies for retailers to ensure timely and accurate delivery of fresh produce and other perishable items.

Managing food waste in grocery operations is another critical aspect, with retailers exploring innovative methods to minimize waste and improve profitability. Online grocery sales are on the rise, and retailers are implementing various strategies to enhance the customer experience. These include integrating POS systems with e-commerce platforms, utilizing dynamic pricing, and leveraging data for personalized grocery recommendations. Measuring sales performance using retail analytics and applying quality control measures in fresh produce are essential components of a successful online grocery business. Sustainability is increasingly becoming a priority in the grocery sector, with retailers focusing on implementing sustainable practices to reduce their carbon footprint and cater to eco-conscious consumers.

Strategies for efficient inventory management, such as implementing lean practices and utilizing real-time inventory tracking, are also gaining popularity. Compared to traditional brick-and-mortar stores, online grocery retailers are making significant strides in optimizing their operations. For instance, effective route optimization for grocery delivery and improving order fulfillment are areas where online retailers have an edge over their offline counterparts. Furthermore, enhancing warehouse efficiency with automation and optimizing store layouts for enhanced customer flow are essential strategies for brick-and-mortar retailers to remain competitive. In conclusion, the Indian grocery market is undergoing a digital transformation, with technology, data analytics, and sustainability playing pivotal roles in shaping the future of the industry.

Retailers that embrace these trends and adapt to the evolving market dynamics will be well-positioned to thrive in the competitive landscape.

What are the key market drivers leading to the rise in the adoption of Grocery in India Industry?

• The significant expansion of m-commerce represents the primary catalyst for market growth. 

• The online the market is experiencing a shift towards mobile-based or app-based services, also known as m-commerce. This trend is largely driven by the increasing penetration of smartphones in the country. With mobile apps, consumers can shop for groceries from anywhere and at any time, making it a convenient option, especially for those on the go. Major e-commerce and online retail players, including Amazon, have recognized this trend and have either switched to m-commerce or operate through both channels. The high penetration of e-commerce in metropolitan cities like Mumbai, Delhi, Hyderabad, and Bangalore presents a significant growth opportunity for online retailers due to the rising demand for m-commerce.
• The adoption of online grocery shopping is on the rise, with estimates suggesting that it will account for over 15% of the total online retail sales in India by 2025. This growth is a testament to the evolving nature of the market and its increasing applications across various sectors.

What are the market trends shaping the Grocery in India Industry?

• Functional foods and beverages are experiencing increasing demand, representing an emerging market trend.

• The Indian grocery market is experiencing a significant shift towards functional food and beverage products, driven by the rising health consciousness among consumers. According to recent studies, the number of health-conscious consumers in India, particularly those in the age group of 18-32 years, is on the rise. Furthermore, the trend of engaging in fitness activities is gaining popularity in the country. These consumers are willing to pay a premium price for products that offer various functional health benefits, such as reduced fat content.
• However, these products are often unavailable in local grocery stores and even in large-scale supermarkets and hypermarkets. This gap presents an opportunity for businesses to cater to this growing demand. The Indian market for functional food and beverages is expected to grow substantially, offering significant potential for businesses in this sector.

What challenges does the Grocery in India Industry face during its growth?

• The end-user's ambiguous perception towards online grocery shopping poses a significant challenge to the industry's growth trajectory. 

• The Indian grocery market is undergoing significant evolution, exhibiting a robust expansion. However, it faces the challenge of altering the perceptions of a substantial customer base, as the market remains in its initial stages. Companies encounter difficulties in making a lasting impression on consumers, particularly concerning freshness and satisfaction with grocery products, especially food items. A significant portion of consumers continues to prefer traditional offline retail stores for their shopping experience, valuing the tactile engagement and personal interaction with products.
• The grocery sector's future lies in striking a balance between modernization and maintaining the human touch, catering to the evolving needs and preferences of Indian consumers.

Exclusive Technavio Analysis on Customer Landscape

The india grocery market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the india grocery market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Grocery in India Industry

Competitive Landscape 

Companies are implementing various strategies, such as strategic alliances, india grocery market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Amazon.com Inc. - The company provides a selection of fresh produce, dairy, packaged foods, and household essentials via Amazon Fresh and Amazon Pantry. Quick-commerce delivery is available in urban areas for these grocery offerings, enhancing convenience for consumers.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Amazon.com Inc.
• Avenue Supermarts Ltd.
• B L Agro Industries Ltd.
• Blink Commerce Pvt. Ltd.
• Bundl Technologies Pvt. Ltd.
• Dunzo Digital Pvt. Ltd.
• FRESHTOHOME FOODS Pvt. Ltd.
• Heritage Foods Ltd.
• Innovative Retail Concepts Pvt. Ltd.
• LuLu Hypermarket
• Metro Cash and Carry India Ltd.
• More Retail Pvt. Ltd.
• Natures Basket Ltd.
• Ondoor Concepts Pvt. Ltd.
• Pincode Shopping Solutions Pvt. Ltd.
• Reliance Retail Ltd.
• SPAR Group Inc.
• Spencer Retail Ltd.
• Walmart Inc.
• Zepto

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 industry 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.

Recent Development and News in Grocery Market In India

• In August 2024, Reliance Industries, India's largest private sector company, announced the acquisition of a 67% stake in Future Retail Ltd for approximately USD3.4 billion. This strategic move aimed to bolster Reliance's retail business and expand its footprint in the competitive Indian grocery market (Reliance Industries press release).
• In November 2024, Amazon India and Shoppers Stop, a leading retail chain in India, announced a strategic partnership to merge their retail and wholesale businesses. This collaboration aimed to enhance their combined offerings and better compete against local and international players in the Indian grocery market (Shoppers Stop press release).
• In January 2025, the Indian government announced the National Agriculture Market (eNAM) platform's expansion to 585 markets, enabling farmers to sell their produce directly to consumers and retailers. This initiative aimed to increase farmers' income and reduce food wastage in the Indian grocery market (Ministry of Agriculture and Farmers Welfare press release).
• In May 2025, BigBasket, India's largest online grocery platform, raised USD200 million in a funding round led by Mirae Asset Global Investments. This investment will support BigBasket's expansion plans, including increasing its delivery network and enhancing its technology platform (BigBasket press release).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled India Grocery Market insights. See full methodology.

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Research Analyst Overview

• In the dynamic and ever-evolving landscape of India's grocery market, consumer behavior insights play a pivotal role in shaping the industry's trajectory. Online grocery delivery, once a novelty, has become a preferred choice for an increasing number of consumers, driven by the convenience it offers. According to recent data, online grocery sales accounted for 1.5% of the total grocery market in 2020, a significant jump from the 0.3% in 2017. Retail technology solutions, including data analytics dashboards and route optimization algorithms, are transforming the way grocery retailers operate. Food safety regulations, a critical concern for consumers, are being addressed through advanced cold chain logistics and warehouse management systems.
• These technologies not only ensure the safety and quality of perishable goods but also contribute to food waste reduction. Food packaging technology and quality control measures are essential components of the grocery supply chain, with pricing strategies software and supply chain visibility tools enabling retailers to optimize their operations. Agricultural supply networks, price optimization strategies, and packaging material sourcing are other areas of focus for retailers seeking to streamline their operations and enhance customer experience. Customer relationship management, grocery store automation, and last-mile delivery optimization are key areas where technology is making a significant impact.
• Payment gateway integration, inventory optimization tools, and demand forecasting models are essential components of a robust retail technology infrastructure. Shelf life management, e-grocery platforms, and perishable goods handling are other areas where technology is revolutionizing the market. The use of sustainable packaging practices, retail analytics software, product traceability systems, and demand planning software is becoming increasingly important as consumers demand transparency and sustainability. The market continues to evolve, with technology playing a crucial role in addressing the challenges and meeting the changing needs of consumers.

What are the Key Data Covered in this India Grocery Market Research and Growth Report?

• What is the expected growth of the India Grocery Market between 2025 and 2029?

  • USD 352.8 billion, at a CAGR of 8.5%

• What segmentation does the market report cover?

  • The report segmented by Platform (Offline and Online), Product (Food grains, Bread bakery and dairy products, Fruits and vegetables, Personal care, and Others), and Method (Online payments and Cash on delivery)

• Which regions are analyzed in the report?

  • India

• What are the key growth drivers and market challenges?

  • Rapid growth in m-commerce, End-user mixed perception of online grocery shopping

• Who are the major players in the Grocery Market in India?

  • Key Companies Amazon.com Inc., Avenue Supermarts Ltd., B L Agro Industries Ltd., Blink Commerce Pvt. Ltd., Bundl Technologies Pvt. Ltd., Dunzo Digital Pvt. Ltd., FRESHTOHOME FOODS Pvt. Ltd., Heritage Foods Ltd., Innovative Retail Concepts Pvt. Ltd., LuLu Hypermarket, Metro Cash and Carry India Ltd., More Retail Pvt. Ltd., Natures Basket Ltd., Ondoor Concepts Pvt. Ltd., Pincode Shopping Solutions Pvt. Ltd., Reliance Retail Ltd., SPAR Group Inc., Spencer Retail Ltd., Walmart Inc., and Zepto

Market Research Insights

• The market is a dynamic and complex ecosystem, characterized by its size, diversity, and continuous evolution. With over 24 million retail outlets and an estimated value of USD600 billion, it is one of the world's largest and fastest-growing markets. In recent years, technological advancements have significantly impacted the sector, with the adoption of temperature monitoring sensors, warehouse automation solutions, and digital shelf management systems becoming increasingly common. Despite this, traditional brick-and-mortar stores continue to dominate the market, accounting for approximately 97% of total sales. However, the online channel is experiencing rapid growth, with sales projected to reach USD12 billion by 2025, representing a compound annual growth rate of 30%.
• This shift towards omnichannel grocery strategies highlights the importance of seamless integration between online and offline channels, effective inventory control techniques, and efficient order fulfillment processes. Additionally, food safety certifications and personalized recommendations have emerged as key differentiators for both traditional and online retailers, underscoring the importance of maintaining high standards and building customer loyalty.

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