India Online Grocery Market Outlook 2031
The India online grocery market size was valued at USD 5.45 Billion in 2022 and is projected to reach USD 93.27 Billion by 2031, expanding at a CAGR of 37.1% during the forecast period, 2023-2031. The growth of the market is attributed to the changing lifestyle of consumers, rapid urbanization, and growing consumer inclination toward online shopping.
Online grocery stores are e-commerce stores that are based on mobile and web applications. These stores are used to purchase food and other household products. Consumers place order online and schedule home deliveries from the local store or third-party sellers.
Online grocery stores offer convenience and access to a wide range of products. Additionally, the users can place prepaid orders and schedule the time of delivery as per their convenience. Rising disposable income has increased inclination toward online shopping platforms.
These platforms are more convenient for grocery shopping as compared to walking down to the neighborhood vendors. Additionally, rising usage of smartphones and low data cost has contributed to the growing consumer preference towards online shopping.
Growing preference toward online shopping is owing to the emergence of COVID-19 pandemic outbreak across the globe. Various government restrictions to control the spread of the virus has led to increasing consumer awareness regarding convenient and safe shopping, thereby boosting the online grocery market.
India Online Grocery Market Drivers, Restraints, Trends, and Opportunities
- Growing digital literacy and upsurge in Internet penetration are some of the key factors driving the market growth. Additionally, government initiatives to promote digital economy framework is expected to boost the market growth.
- Consumers living in metropolitan cities such as Bangalore, Chennai, Mumbai, and Delhi are more inclined toward online shopping owing to the availability of high-speed internet and logistical simplicity. Thus, factors are expected to boost the market growth during the forecast period.
- Rapid urbanization and growth of the e-commerce industry is driving the market growth.
- Various service providers are adopting innovative business models such as express and slotted or on-demand delivery models, thereby positively impacting the market growth.
- Attractive discounts offered by these service portals are boosting the market growth.
Scope of India Online Grocery Market Report
The report on the India online grocery market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Online Grocery Market - India Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product Types (Staples & Cooking Essentials and Breakfast & Dairy) and Payment Methods (Online and Cash)
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Regional Scope
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South India, North India, East India and West India
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Amazon India Pvt. Ltd., Godrej Nature's Basket Ltd., Grofers India Pvt. Ltd., Paytm E-Commerce Pvt. Ltd. (Paytm Mall), Reliance Retail Ltd. (Reliance Fresh), Spencer's Retail, Supermarket Grocery Supplies Pvt. Ltd. (BigBasket) and UrDoorstep eRetail Pvt. Ltd.
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India Online Grocery Market Segment Insights
Product Types Segment Analysis
On the basis of product types, the market is segmented into staples & cooking essentials and breakfast & dairy. The staple and cooking essential segment is anticipated to account for a market share of more than 25% owing to the consistent demand for flour, pulses, rise, lentils, food grains, and refined oil.
The emergence of COVID-19, has encouraged consumers to stock up the essentials over the fear of lockdown regulation due to surging infection cases. The breakfast & dairy segment is projected to expand at a CAGR of around 30% during the forecast period.
Rising demand for consumer products such as milk, curd, and yogurt is expected to drive the segment growth. These products have a short life span as compared to other products and are daily essentials in the households of India. Moreover, these products cannot be stocked and have to be consumed within a particular time, which increases it frequency of order over the time.
Payment Methods Segment Analysis
Based on payment methods, the market is bifurcated into online and cash. The online segment is expected to account for a market share of more than 57% during the forecast period. Growing consumer preference for online payments is driving the segment growth.
Additionally, in the wake of COVID-19 pandemic, consumers are avoiding physical contact to a greater extent, which is boosting the adoption of online payment.
Growing consumer awareness regarding social distancing practices to prevent the spread of infection is encouraging consumers is further propelling the segment growth. The cash segment is projected to expand at a healthy growth rate owing to the adoption of cash-on-delivery methods that allow e-commerce merchants to reach unbanked customers.
Cash payment reduces the issues of payment losses. Large number of consumers in rural and sub-urban areas opt for cash on-delivery method owing to the security and confidentiality issues with online payments.
India Online Grocery Market Regional Analysis
In terms of regions, the market is classified as South India, North India, East India and West India. The market in South India is anticipated to account for a market share of more than 30% in terms of revenue. The presence of leading players such as BigBasket, Grofers India Pvt. Ltd., and Amazon India Pvt. Ltd. in this region is fueling the regional market growth.
The market in West India is expected to expand at a rapid pace owing to growing adoption of online grocery platforms by the tech-savvy population. Large number of working professionals present in the cities of West India such as Pune and Mumbai are preferring online grocery shopping owing to their busy schedules and the convenience offered by online shopping.
Segments
Products
- Staples & Cooking Essentials
- Breakfast & Dairy
Payment Methods
Regions
- South India
- North India
- East India
- West India
Key Players
Competitive Landscape
Some of the leading players in the India online grocery market are Amazon India Pvt. Ltd., Godrej Nature's Basket Ltd., Grofers India Pvt. Ltd., Paytm E-Commerce Pvt. Ltd. (Paytm Mall), Reliance Retail Ltd. (Reliance Fresh), Spencer's Retail, Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), and UrDoorstep eRetail Pvt. Ltd.
Companies are focusing on improving their market presence by adopting various market strategies such as partnerships, mergers, and acquisitions. These strategies allow the manufacturers to improve their product offering and expand their market share.
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