India - Grocery Market by Product and Platform - Forecast and Analysis 2023-2027

India Grocery Market Forecast 2023-2027

The India grocery market size is estimated to increase by USD 289.29 billion and grow at a CAGR of 8.06% between 2022 and 2027. The rise in disposable income among consumers in India is the key factor driving the 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 market during the forecast period. 

India Grocery Market: Overview

To get additional information about the market, Request Free Sample

Market Segmentation

This 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.

By Product 

The food grains segment is expected to dominate the 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 market during the forecast period.  

Bread, bakery products, and dairy products account for the second-largest share of the 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 market during the forecast period.

By Platform 

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 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 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.

For a detailed summary of the market segments Request for Sample Report

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 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 market during the forecast period.

Market Dynamics and Customer Landscape

The Market is undergoing a transformation driven by various factors including busy lifestyles, digital payment methods, and the rise of AI-driven recommendation systems. With consumers seeking convenience, grocery shopping is increasingly shifting towards digital platforms, aided by automation and delivery systems. The Digital India effort has further accelerated this transition, with a surge in cashless payments and the adoption of digital wallets. E-commerce behemoths are capitalizing on this trend, offering a wide range of products from bakery and dairy items to fruits, vegetables, and household products. Additionally, the market sees growing demand for specialty items such as gluten-free and immunity products, catering to diverse dietary needs. As electric vehicles facilitate sustainable delivery options, the Market continues to evolve to meet the demands of modern consumers while ensuring client happiness and loyalty in an ever-changing landscape.

Significant Market Trends 

An increase in the usage of flexible payment and delivery services is the primary trend in the 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 market during the forecast period.

Major Market Challenge 

Huge competition among offline retail stores and online channels is a challenge that affects the growth of the market. Online 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 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 market during the forecast period.

Key India Grocery Market Companies Overview

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.

• Key Offering- Amazon.com Inc.: The company offers online groceries such as fresh fruits and vegetables, cheese, dry fruits, dals, and home care items under its brand AmazonFresh. 
• Key Offering- Blink Commerce Pvt. Ltd.: The company offers online groceries such as fresh fruits and vegetables, chicken, meat, and fish, pet care, baby care products, tea and coffee, dairy, eggs, and instant meals. 
• Key Offering- Zepto: The company offers grocery delivery services for fruits, vegetables, ice cream, and groceries. 

The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Avenue Supermarts Ltd.
• B L Agro Industries 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.

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.

Segment Overview

The market report forecasts market growth by revenue and analyzes the latest trends and growth opportunities from 2017 to 2027. 

• Platform Outlook
  • Offline
  • Online

• Product Outlook 
  • Food grains
  • Bread bakery and dairy products
  • Fruits and vegetables
  • Personal care
  • Dry and baking products and others

Market Analyst Overview

The Market is undergoing significant transformations driven by technological innovations and shifting consumer preferences. With busy lifestyles and a preference for convenience, consumers are increasingly turning to online grocery delivery services, facilitated by AI-driven recommendation systems and automation. Contactless shopping, cashless payments, and digital wallets have become the norm, especially with the rise of smartphone usage and the Digital India effort. E-commerce behemoths are leveraging data analytics and machine learning algorithms to offer personalized promotions and targeted marketing, enhancing customer loyalty. Additionally, Quick commerce and dark stores are emerging to cater to time-saving benefits, while drones and electric vehicles are revolutionizing delivery systems. The market also sees growth opportunities in health and wellness products, Halal food, and organic items, appealing to diverse consumer tastes and preferences across rural and metropolitan areas.

Moreover, the market is witnessing dynamic changes driven by evolving customer tastes and preferences alongside advancements in digital platforms and AI technology. With the rise of online grocery industry, delivery options and digital payment methods have become key considerations for consumers, influencing their purchasing process. Loyalty programs play a crucial role in retaining customers amidst fickle loyalty and the emergence of new competitors in larger cities. Additionally, there's a growing demand for health and wellness products, including immunity products and gluten-free options, contributing to revenue opportunities. The Halal Food Market is also gaining traction, catering to specific dietary requirements. As households seek convenience, online wholesale grocery market offers a wide inventory of household items, electronics, and home furnishings, further enhancing client happiness and advertising efforts.

India Grocery Market Scope
Report Coverage	Details
Page number	133
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.06%
Market growth 2023-2027	USD 289.29 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	6.78
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market forecasting, 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.
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.

BUY NOW Full Report and Discover more

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across India
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch