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The India online grocery market reached a value of USD 4.8 billion in 2023. The fluctuating market is highly dependent on investments but is expected to show a steady growth in the coming few years.
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An online grocery store can either be an independent e-commerce service selling grocery or a brick-and-mortar grocery store or supermarket that allows online ordering. These platforms can include beverages, bakery, canned goods, dairy, frozen foods, meat, fresh fruits and vegetables, homecare cleaners, and personal care products, among others.
While less than 2 million of Indian grocery consumers buy their groceries through online platforms, the India online grocery market has the potential for growth, especially with the increased penetration of the internet. The market is highly concentrated with players like Big Basket and Grofers, that are thriving in regional markets like Bangalore, Hyderabad, and Delhi-NCR.
Expansion of product offerings, adoption of a hyperlocal approach by online grocery retailers, and introduction of subscription-based models have led to the India online grocery market development
Online grocery platforms have expanded their product offerings beyond staple food items to include fresh produce, dairy, bakery products, gourmet items, and ready-to-eat meals. This allows consumers to fulfill all their grocery needs in one place and supports India online grocery market expansion.
The adoption of a hyperlocal approach by online grocery retailers involves setting up small warehouses or dark stores in urban areas to ensure prompt deliveries, sometimes within hours of placing an order. BigBasket has established a network of over 40 dark stores across major cities to facilitate faster deliveries.
Subscription-based models offering free or discounted deliveries, has gained popularity in the India online grocery market outlook. Amazon's Prime membership program, which includes free and fast delivery on eligible items, has been successful in driving customer loyalty and repeat purchases.
Flipkart, a leading e-commerce platform in India, has introduced an AI-powered grocery recommendation engine that suggests products based on a user's browsing history and purchase patterns. This trend enhances user engagement, encourages larger cart sizes, and improves overall customer satisfaction.
The market is also likely to be aided by the increasing availability of cheaper smartphones and declining data tariffs. With the government promoting digital literacy and the digital economy framework, the industry will receive a further impetus for its growth. The market is expected to be aided by the consumers in Tier-I cities who are more adaptable to online shopping due to the availability of highspeed internet, better adaptability to mobile devices, and the logistical simplicity.
Indian consumers are also trying grocery by international brands and cuisines, further propelling the India online grocery market growth. They are also willing to pay more for premium and organic food. Further, the market is also finding impetus in the rise in the number of women in the workforce.
Moreover, major players are expected to adapt their platforms to local languages and introduce better voice search features to expand their potential consumer base. Other attractive offers like low delivery charges, fast delivery, cashback offers, and flexible return policies by e-commerce websites dealing with groceries are also expected to drive the market in the coming years.
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The EMR’s report titled “India Online Grocery Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Category
Market Breakup by Average Spend per Transaction (in Rupees)
Market Breakup by Platform
Market Breakup by Payment Method
Market Breakup by Region
Mobile applications leads to higher grocery sales due to their convenience and user-friendly interface
Mobile applications have emerged as the dominant force in the online grocery sector as consumers in India prefer the convenience and user-friendly interface of mobile apps for their grocery shopping needs. BigBasket, Grofers, and Amazon Pantry have invested in developing robust mobile applications to cater to this growing demand.
While mobile apps have seen rapid adoption due to the widespread use of smartphones and mobile internet, desktop websites continue to serve a significant portion of the market, especially in smaller cities and towns where access to smartphones may be limited. As per India online grocery market analysis, these websites still hold relevance among older consumers and those more accustomed to traditional desktop browsing. Websites provide a larger screen space for browsing products and offers, making them a preferred choice for some shoppers.
Online payments segment holds a significant share of the market due to growing digitalisation in India
Online payments dominate the online grocery market in India due to the increasing acceptance of debit/credit cards and the popularity of digital payment platforms like Paytm, PhonePe, and Google Pay. This method offers convenience and security to consumers, enabling faster checkout processes and reducing cash handling costs for retailers, contributing to a seamless shopping experience for customers.
Despite the rise of online payments, COD continues to play a significant role in catering to consumers in smaller cities and towns, as well as those with limited access to digital payment options. It provides a sense of security to consumers who prefer to pay at the time of delivery, especially for those who are hesitant to make online transactions.
Market players are focused on delivering groceries from local stores within a specific radius, expanding product offerings beyond staples, and adopting subscription-based models to incentivise loyalty
Known as Blinkit, was founded in 2013 and is headquartered in Gurgaon, India. It operates as an online grocery delivery platform, offering customers a convenient way to shop for a wide range of groceries and have them delivered to their doorstep.
A global e-commerce giant, was founded in 1994 and is headquartered in Washington, United States. It offers a ...
Was founded in 2005 and is based in Mumbai, India. It is a gourmet food retail chain that specialises in offer...
Founded in 2005 and headquartered in Kolkata, India, is a supermarket retail chain that offers a wide range of...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the online grocery market in India include Innovative Retail Concepts Private Limited, Flipkart Private Limited, Paytm, Avenue Supermarts Limited, Reliance Retail Limited, and Fiora Online Limited, among others.
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Northern region leads the market due to its high population and large base of working women
North region's high population density and urbanisation levels contribute to a strong demand for online grocery services. Major cities like Delhi and Chandigarh are key hubs for online grocery platforms, attracting a large customer base and driving the growth of the sector in the region.
Cities like Mumbai, Pune, and Bangalore are key contributors to the India online grocery market growth. The strong economic activity, high literacy rates, and tech-savvy population in these cities create a favorable environment for the online grocery sector to thrive.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the India online grocery market reached an approximate value of USD 4.8 billion.
The major drivers of the market include growing internet penetration in the country, along with the rise in digital awareness and the government promoting digital literacy and digital economy framework.
Key trends aiding market expansion include the increasing availability of cheaper smartphones, declining data tariffs, and rising demand for instant grocery delivery.
Regions considered in the market are North Region, East and Central Region, West Region, and South Region.
Different categories in the market are grocery and staples, and fruits and vegetables, among others.
Indian online grocery can be categorised by spending into less than 1000, between 1000 and 1500, and greater than 1500.
The different modes of payment include online payments and cash on delivery.
Based on platform, the market is divided into websites and mobile applications.
Key players in the market are Innovative Retail Concepts Private Limited, Blink Commerce Private Limited, Amazon.com, Inc., Nature’s Basket, Spencer’s Retail Limited, Flipkart Private Limited, Paytm, Avenue Supermarts Limited, Reliance Retail Limited, and Fiora Online Limited, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Category |
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| Breakup by Average Spend per Transaction (in Rupees) |
|
| Breakup by Platform |
|
| Breakup by Payment Method |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
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| Companies Covered |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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