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The India online grocery market is poised to grow by USD USD 11.97 billion at a CAGR of 25.2% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Firstly, the increased popularity of e-commerce platforms has made shopping more convenient for consumers. Secondly, the rapid growth of m-commerce, or mobile commerce, has made it easier for consumers to shop on the go. Lastly, the rise in disposable income among Indian consumers has led to an increase in online spending. These trends are expected to continue, making India a lucrative market for e-commerce businesses. The convenience of shopping online, the widespread use of smartphones, and the growing purchasing power of Indian consumers are driving the growth of the e-commerce industry in India.
Online Grocery Market in India market size, Request for Free Report Sample
The market is witnessing significant growth due to urbanization and increasing internet penetration. With the rise of digital platforms, consumers now have the convenience of shopping for groceries online from the comfort of their homes. E-commerce portals and food-delivery platforms have emerged as major players in this market. Small-scale grocers are also joining the bandwagon to expand their customer base. Business models for online grocers include subscription models and membership programs, which offer time-saving benefits and promotional strategies to attract and retain customers. Service portals offer a wide range of delivery options, including scheduled deliveries and last-mile delivery solutions, to cater to diverse consumer preferences. The use of mobile applications and payment gateways has made online grocery shopping more accessible and convenient. Logistics and last-mile delivery solutions are critical to ensuring timely delivery of perishable items. The market is expected to grow further with the adoption of virtual supermarkets and RTE food offerings. Overall, the market is transforming the way we shop for groceries, offering convenience, time-saving benefits, and a more personalized shopping experience.
Increased popularity and rise in e-commerce platforms is notably driving market growth. Consumers in India are increasingly turning to online e-commerce platforms for their grocery needs due to the convenience and access to a wider range of products compared to traditional brick-and-mortar stores. These platforms provide benefits such as same-day delivery, discounts, and easy digital payments. With the growing number of local and international food brands, there is a limitation of shelf space in physical retail outlets. This opens up an opportunity for manufacturers to sell their products directly to consumers online or through e-commerce channels.
Furthermore, E-commerce technology, including mobile applications and logistics solutions, enables seamless shopping experiences. Payment gateways ensure secure transactions, while last-mile delivery solutions ensure timely and efficient delivery. To attract and retain customers, e-commerce platforms employ promotional strategies such as subscription models, membership programs, and scheduled deliveries. These services cater to various consumer preferences, including RTE food, baking products, dairy products, fruits, vegetables, personal care, dry products, household products, beverages, meat products, and more. Trust and security are essential factors for consumers, and e-commerce platforms prioritize these aspects through robust payment systems and data protection policies. Thus, such factors are driving the growth of the market during the forecast period.
Growth in demand for functional foods and beverages is the key trend in the market. The shift towards healthier living has led to an increase in demand for nutrient-rich food and beverage products. Consumers, particularly those in the 18-32 age group, are prioritizing their well-being and are willing to pay a premium for items that offer functional benefits, such as reduced fat and high antioxidant content. However, these products are often unavailable in traditional grocery stores and even in large supermarkets and hypermarkets.
Moreover, to cater to this changing consumer trend, the marketplaces are introducing a wide range of offerings, including bread, dairy products, fruits, vegetables, personal care items, dry products, baking products, household items, beverages, meat products, and RTE food. E-commerce platforms are leveraging e-commerce technology, mobile applications, logistics, payment gateways, and last-mile delivery solutions to ensure seamless shopping experiences. Promotional strategies such as subscription models, membership programs, cash on delivery, and digital payments add to the convenience and trust while ensuring security for consumers. Thus, such market growth and trends will shape the market during the forecast period.
Lack of freshness in edible products is the major challenge that affects the growth of the market. Online grocery delivery platforms ensure the timely and efficient delivery of a wide range of products, including bread, dairy products, fruits, vegetables, personal care items, dry products, baking products, household items, beverages, meat products, and RTE food. However, the challenge of maintaining the freshness of perishable items, such as fruits and vegetables, remains a significant concern. Some platforms may not offer same-day delivery for these items, which can impact their freshness upon arrival.
Additionally, the importation of international brand products requires time for transit and storage in vendors' warehouses, further affecting their freshness. To address these challenges, vendors have implemented strategies such as reduced delivery times, promotional offers, subscription models, and membership programs. E-commerce technology, including mobile applications, logistics, payment gateways, and last-mile delivery solutions, plays a crucial role in ensuring a seamless shopping experience. Trust and security are paramount, with cash on delivery and digital payment options available to consumers. Hence, the above factors will impede the growth of the market during the forecast period
The market share growth by the food products segment will be significant during the forecast period. The market has witnessed significant growth due to urbanization and increasing internet penetration, particularly among urban consumers. Online grocers, including food-delivery platforms and e-commerce portals, have adopted various business models such as quick commerce and target delivery within short time frames.
The food products segment was valued at USD 809.60 million in 2018. Service portals offer customization and personalization, making the shopping experience more convenient and time-saving. Consumers prefer online grocery shopping for the availability of a wide range of products, including fresh produce, pantry staples, and specialty items. The convenience of shopping from home, easy product selection, and price comparison are significant factors driving the trend. Delivery options are swift, with integrated return policies ensuring customer satisfaction. Smartphones and the internet have made virtual supermarkets accessible, enabling consumers to compare prices and shop from various brands and retailers. Brick-and-mortar stores have responded by offering online shopping platforms, ensuring a seamless shopping experience for consumers during lockdowns and beyond. Payment methods are secure and convenient, adding to the overall appeal of online grocery shopping. Product offerings include food grains, packaged foods, and other grocery items, catering to various dietary requirements and preferences. The market's success can be attributed to its ability to cater to the demands of modern consumers, offering a convenient, efficient, and personalized shopping experience.
Avenue Ecommerce Ltd. - The company offers grocery, cookware and serve ware, fruits and vegetables, and kitchen appliances which one can order online or visit their stores located in several Tier 1 and Tier 2 cities in India.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Online Grocery Market: Online Grocery Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, UK, France - Size and Forecast
India - Grocery Market: India - Grocery Market by Product and Platform - Forecast and Analysis
Online Grocery Delivery Services Market: Online Grocery Delivery Services Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, UK, US, Japan, France - Size and Forecast
Online grocery shopping has emerged as a popular trend among urban consumers, driven by the convenience it offers. E-commerce platforms and food-delivery platforms have transformed the grocery retail industry by providing service portals that allow customers to order their favorite products online. The business models of online grocers vary, with some focusing on quick commerce business and others offering a wide range of product type insights, including fresh produce, pantry staples, and specialty items. Internet penetration and the widespread use of smartphones have made online grocery shopping accessible to a larger audience. Small-scale grocers have also joined the bandwagon, using digital platforms to expand their reach. Delivery options have become a key differentiator, with some players offering same-day delivery and others focusing on affordability. Offline stores continue to play a role in the grocery retail landscape, with many offering pick-up services and integrating their offerings with e-commerce platforms.
Furthermore, the shopping experience on these platforms is a major draw, with features like product selection, price comparison, and time-saving benefits attracting customers. Lockdowns and delivery logistics have posed challenges for online grocers, but they have adapted by expanding their product offerings and focusing on delivery efficiency. Payment methods have also become an important consideration, with many platforms offering multiple options to cater to diverse customer needs. In summary, the online grocery market is a dynamic and evolving space, driven by the convenience it offers and the changing needs of urban consumers. The future of grocery retail is likely to be a blend of online and offline channels, with digital platforms playing a key role in shaping the shopping experience.
Market Scope |
|
Report Coverage |
Details |
Page number |
126 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.2% |
Market growth 2024-2028 |
USD 11.97 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.78 |
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., Flipkart Internet Pvt. Ltd., Flora foods, FRESHTOHOME FOODS Pvt. Ltd., 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., 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, Market condition analysis for market 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. |
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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 Product
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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