India Grocery Market Analysis, Size, and Forecast 2026-2030

India Grocery Market Size 2026-2030

The india grocery market size is valued to increase by USD 404.6 billion, at a CAGR of 9% from 2025 to 2030. Increased popularity and rise in e-commerce platforms will drive the india grocery market.

Major Market Trends & Insights

• By Platform - Offline segment was valued at USD 552 billion in 2024
• By Product - Food grains segment accounted for the largest market revenue share in 2024

Market Size & Forecast

• Market Opportunities: USD 612.7 billion
• Market Future Opportunities: USD 404.6 billion
• CAGR from 2025 to 2030 : 9%

Market Summary

• The grocery market in India is undergoing a significant transformation, defined by the convergence of traditional retail and digital innovation. Key drivers include rising disposable incomes and widespread e-commerce platform adoption, which offer consumers unprecedented convenience and access to a wide array of products, from staples to personal care items.
• A primary trend shaping the industry is the growing consumer preference for health and wellness products, leading to increased demand for functional foods and organic options. However, the market faces challenges related to consumer trust in online platforms, particularly concerning the freshness of perishable goods and the consistency of grocery delivery services.
• For businesses, navigating this dynamic requires a focus on supply chain efficiency. For instance, optimizing cold chain logistics for fresh fruits and vegetables not only reduces spoilage by a significant margin but also builds consumer confidence, directly addressing a key market restraint.
• Balancing the convenience of online grocery shopping with the trust associated with physical stores is crucial for sustained growth.

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

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How is the India Grocery Market Segmented?

The india grocery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2026-2030, as well as historical data from 2020-2024 for the following segments.

By Platform Insights

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

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The Offline segment was valued at USD 552 billion in 2024 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2025 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.

• Strategic execution is becoming critical as the grocery market in India matures. The implementation of effective omnichannel strategies for grocery retail is no longer optional but a fundamental requirement for engaging a diverse customer base that shops across both physical and digital channels.
• This hybrid approach directly addresses the impact of quick commerce on kirana stores, compelling traditional retailers to either partner with digital platforms or innovate their service models. A key differentiator in the digital space is the use of AI for personalized grocery recommendations, with platforms leveraging this technology reporting customer engagement rates that are 40% higher than those without.
• However, operational hurdles persist. The challenges in last-mile grocery delivery, including traffic congestion and cost inefficiencies, require sophisticated logistical solutions. Furthermore, improving cold chain for fresh produce remains a core focus, as maintaining quality and minimizing spoilage are essential for building consumer trust and securing repeat business in a competitive environment.
• These interconnected factors shape the strategic imperatives for all market participants.

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

• The primary market driver is the growing popularity and expansion of e-commerce platforms, which are fundamentally reshaping consumer purchasing habits for groceries.

• The expansion of the market is primarily fueled by accelerated e-commerce platform adoption and the proliferation of mobile grocery applications.
• The convenience-driven shopping trend has led to the rise of quick commerce logistics, enabling grocery delivery services to achieve fulfillment times under 20 minutes in metropolitan areas. This hyperlocal delivery model is reshaping consumer expectations and intensifying hyperlocal market penetration.
• A critical enabler is the seamless digital payment integration, with online payment methods now accounting for over 60% of transactions on major platforms.
• This omnichannel retail integration, supported by a user-friendly e-grocery platform UI and efficient online order management, creates a frictionless online grocery shopping experience that drives customer acquisition and loyalty in a competitive digital environment.

What are the market trends shaping the India Grocery Industry?

• A prominent market trend is the rising demand for functional foods and beverages. This is driven by increasing health consciousness and a consumer shift toward products with added nutritional benefits.

• The market is witnessing a significant shift toward value-added products, driven by heightened consumer focus on health and wellness products. This trend is fueling growth in the functional food category and the organic food market, with demand for functional foods and beverages showing a notable uptick.
• In response, retailers are expanding private label product development to offer unique and affordable health-oriented options. This includes fortified bread, bakery, and dairy items, as well as an expanded selection of fresh fruits and vegetables. To build consumer trust in e-commerce, companies are investing in smart packaging solutions that ensure product integrity and food safety compliance.
• Subscription-based grocery models for these products are also gaining traction, with adoption rates increasing by 15% among urban households seeking convenience and curated wellness options.

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

• A key challenge impacting market growth is the mixed perception among end-users regarding the reliability and quality of online grocery shopping.

• Navigating consumer perceptions remains a central challenge, particularly concerning grocery price sensitivity and a lingering lack of consumer trust in e-commerce for certain product categories. Inconsistencies in perishable goods logistics and a need for greater supply chain visibility contribute to this skepticism.
• Platforms are deploying AI-powered recommendations and shopper behavior analytics to build confidence through personalization, which has been shown to reduce cart abandonment by up to 12%. Furthermore, many consumers still prefer the option of cash on delivery, requiring retailers to maintain multiple payment systems. To mitigate concerns over quality, some firms are offering enhanced farm-to-fork traceability for fresh items.
• Strategic product assortment planning and targeted digital grocery marketing are essential tools for overcoming these hurdles and fostering stronger customer retention strategies.

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 India Grocery 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.

Adani Wilmar Ltd. - A diverse portfolio of food, beverage, personal care, and household products is offered, catering to a wide range of daily consumer needs and preferences.

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

• Adani Wilmar Ltd.
• Britannia Industries Ltd.
• Dabur India Ltd.
• Godrej Consumer Ltd.
• Gujarat Co Milk Ltd.
• Haldiram India Pvt Ltd.
• ITC Ltd.
• Marico Ltd.
• Mondelez International Inc.
• Mother Dairy Pvt. Ltd.
• Nestle SA
• Orkla ASA
• Parle Products Pvt. Ltd.
• Patanjali Ayurved Ltd.
• PepsiCo Inc.
• Procter and Gamble Co.
• Tata Consumer Products Ltd.
• The Coca-Cola Company
• Unilever PLC

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 India grocery market

• In April 2025, More Retail announced plans for an initial public offering and an aggressive expansion to add over 500 supermarket stores across 160 cities, strengthening its hybrid online-offline model.
• In March 2025, Swiggy's quick commerce arm, Instamart, expanded its operations to 100 cities across India, making over 30,000 products available for rapid delivery to a broader consumer base.
• In November 2024, Amazon Fresh significantly expanded its grocery delivery service to more than 270 cities nationwide, enhancing its farm-to-doorstep network to connect thousands of farmers directly with customers.
• In May 2025, BigBasket initiated pilots for 10-minute grocery and food delivery services in Bengaluru, scaling its dark store infrastructure to compete in the rapid fulfillment segment.

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

• The grocery market in India is defined by a rapid structural shift toward technology-driven operations. The deployment of an effective omnichannel retail integration strategy has become a critical boardroom issue, directly influencing budgeting for in-store retail technology and supply chain automation.
• This evolution addresses the need for a seamless customer journey, from discovery on an e-grocery platform UI to fulfillment via a hyperlocal delivery model or click-and-collect service. Key operational advancements include the use of predictive inventory management and shopper behavior analytics, which have collectively reduced stockout incidents by over 25% in organized retail.
• The integration of contactless payment systems and efficient online order management is now standard, while innovations in smart packaging solutions are addressing consumer concerns around food safety compliance. As competition intensifies, a focus on customer relationship management and sophisticated loyalty programs becomes paramount for market positioning and long-term retention.

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 2026 and 2030?

  • USD 404.6 billion, at a CAGR of 9%

• What segmentation does the market report cover?

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

• Which regions are analyzed in the report?

  • APAC

• What are the key growth drivers and market challenges?

  • Increased popularity and rise in e-commerce platforms, End-user mixed perception of online grocery shopping

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

  • Adani Wilmar Ltd., Britannia Industries Ltd., Dabur India Ltd., Godrej Consumer Ltd., Gujarat Co Milk Ltd., Haldiram India Pvt Ltd., ITC Ltd., Marico Ltd., Mondelez International Inc., Mother Dairy Pvt. Ltd., Nestle SA, Orkla ASA, Parle Products Pvt. Ltd., Patanjali Ayurved Ltd., PepsiCo Inc., Procter and Gamble Co., Tata Consumer Products Ltd., The Coca-Cola Company and Unilever PLC

Market Research Insights

• The market's dynamics are increasingly shaped by convenience-driven shopping and widespread e-commerce platform adoption, compelling retailers to innovate. The integration of varied online payment methods has accelerated checkout times by over 20%, enhancing the online grocery shopping experience on mobile grocery applications. Simultaneously, the competitive retail landscape is intensifying due to rapid hyperlocal market penetration by new entrants.
• To adapt, incumbents are focusing on sophisticated customer retention strategies, with data indicating that personalized digital grocery marketing campaigns can improve repeat purchase rates by up to 15%. This strategic shift underscores the market's move toward technology-enabled, consumer-centric operating models to navigate evolving consumption patterns and maintain a competitive edge.

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