India - Online Grocery Market by Product and Type -Forecast 2023-2027

Online Grocery Market in India Forecast 2023-2027

The online grocery market in India is poised to grow by USD 4.74 billion accelerating at a CAGR of 20.52% between 2023 and 2027. Additionally, the market is fragmented in nature and shows a YOY growth of  19.20%. The report covers diverse dimensions such as the market size of forecast and historic data, influential drivers, analysis of prominent companies, and evolving market growth and trends, presenting a comprehensive outlook on the global market scenario.

The growth of the market depends on several factors, including increased popularity and rise in e-commerce platforms, rise in disposable income among consumers in India, and rapid growth in m-commerce. The comprehensive report offers crucial insights into the industry's changing dynamics, helping businesses to identify growth opportunities in the constantly evolving digital retail landscape.

What will be the Size of the Online Grocery Market In India During the Forecast Period?

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Key Driver

The rapid growth in m-commerce is notably driving market growth. 

Apart from the growth in online web-based retail services, the market has also witnessed an increase in the adoption of mobile-based (or app-based) services or m-commerce. The growth in m-commerce is mostly attributed to the increased penetration of smartphones in India. Using mobile apps, consumers can shop from anywhere and in any situation, even when traveling. 

The penetration of e-commerce is high in Indian metropolitan cities, including Mumbai, Delhi, Hyderabad, Bangalore, and other places owing to the high adoption and use of laptops and desktops, which offers a high growth opportunity to these retailers due to the increasing demand for and use of m-commerce. Moreover, the popularity of m-commerce has motivated offline stores and e-commerce players to switch to these platforms. These factors are expected to drive the growth of the market in India during the forecast period.

Major Trends

The growth in demand for functional foods and beverages is an emerging trend in the market.

The growing prevalence of obesity and other health conditions is encouraging health-conscious consumers to opt for food and beverage products that have various functional benefits. Consumers are ready to pay a premium price for products offering various functional and several other health-promoting benefits, such as reduced fat.

However, these products are not available in local grocery stores and even in large-scale supermarkets and hypermarkets. companies in the market are offering new products on their e-commerce platforms that are rich in nutrients and antioxidants and cater to the changing demands of consumers. A large number of functional foods and beverages are available in the market, owing to the increasing product launches by prominent brands and increasing consumer demand for these products. E-commerce platforms collaborate with local and international brands and make these products available to consumers through their online platforms. Hence, such factors will drive the growth of the market in India during the forecast period.

Market Report Coverage

• Market Segmentation
• Marekt Regional Analysis
• Market Companies Contribution

Market Segmentation

The market share growth by the food products segment will be significant during the forecast period. The grocery food products segment contributes substantially to the revenue generated from the retail sales of groceries through online channels. The products included in the food products segment are consumed on a regular basis, and they have shorter shelf lives than those in the non-food products segment. 

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The food products segment was valued at USD 734.55 million in 2017 and continued to grow until 2021. Consumers prefer these retail channels over brick-and-mortar stores for shopping for food products due to factors like options for customization and personalization, availability of high-quality food products, swift delivery processes and integrated return policies, and a wide range of products and brands to select from. In addition, the presence of various leading global packaged food and beverage producers, such as Nestle S.A (Nestle), PepsiCo Inc (PepsiCo), Mars Inc. (Mars), Coca-Cola Co (Coca-Cola), and several others on these retail channels, both through their own websites as well as through third-party retailers, encourage consumers in India to shop for food products online. Moreover, omnichannel marketing of products also enables packaged food and beverage players to attract consumers and increase the sales of food products.  Hence, such factors are expected to boost the growth of the segment during the forecast period.

Online Grocery Market in India Companies Contribution

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 key offerings of the company include online groceries. 

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Amazon.com Inc.
• 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
• 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.
• Zepto

Significant Challenges 

The huge competition from offline retail stores is a major challenge impeding market growth.

Offline grocery and brick-and-mortar retail stores, especially unorganized grocery retailers that mostly establish their shops in residential areas, are the major competitors of online grocery delivery service providers. In developing countries such as India, unorganized neighborhood grocery retailers offer various offers, services, and discounts to their customers. The services include the exchange of products that do not meet customers' expectations and free delivery at doorsteps.

Brick-and-mortar stores nowadays are switching to omnichannel retail strategies to compete with e-commerce players. They offer grocery ordering services through mobile apps and phone calls. They are also installing advanced sensors and maintaining customers' details along with their buying behavior and purchasing patterns to provide attractive offers and services to their customers. All these factors deter the growth of the market in India during the forecast period.

The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth. For details analysis BUY FULL REPORT.

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 Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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Market Analyst Overview

The market has seen significant growth, especially in Tier-II and Tier-III cities, driven by factors like cash on delivery (COD) and other offline payment methods, addressing security and confidentiality issues. The nationwide response to this trend reflects changing shopping habits, further boosting market growth. Consumers now prefer to buy from neighborhood companies and opt for online delivery to adhere to social distancing standards. This shift towards online grocery shopping is seen as a safer option, particularly in South India, where the online grocery market is growing rapidly.

Features like no-contact delivery and online payment have become essential, especially with more people working from home. This trend reflects the new normal, where hygiene and safety factors are paramount. Despite the convenience of online shopping, retail grocery stores are also adapting, offering omnichannel shopping experiences. The digital economy framework and increasing digital literacy have led to higher internet penetration and digital payments. This shift towards online grocery shopping highlights the importance of logistical simplicity in the supply chain and the need for a skilled workforce to meet consumer demands.

Online Grocery Market In India Scope
Report Coverage	Details
Page number	122
Base year	2022
Historic period	2018 - 2022
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 20.52%
Market growth 2023-2027	USD 4.74 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	19.20
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Amazon.com Inc., Avenue Ecommerce 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, 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., 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 the forecast period
Customization purview	If our market research 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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