India Online Grocery Market
India Online Grocery Market, By Product (Fresh Produce, Breakfast and Dairy, Snacks and Beverages, Meat and Seafood, Staples and Cooking Essentials, Others), By Payment (Online, Offline) Trend Analysis, Competitive Market Share & Forecast, 2018-2028
- Published Date: April 2022
- Report ID: BWC22119
- Available Format: PDF
- Page: 118
Report Overview
India online grocery market has undergone rapid urbanization and the increasing working population with their changing lifestyle and time constraints for grocery shopping have resulted in penetration of smartphones and online payment methods...
India Online Grocery Market- Industry Trends & Forecast Report 2028
India online grocery market was worth USD 3.8 billion in 2021 and is further projected to reach USD 34.6 billion by the year 2028, growing at the CAGR of 37.10% in the forecast period. The increasing popularity of online grocery in India is attributed to rapid urbanization and the increasing working population with their changing lifestyle and time constraints for grocery shopping. Furthermore, the growing penetration of smartphones and online payment methods is also influencing the growth of the India online grocery market.
Online Grocery - Overview
The online grocery refers to the purchase of food and other household necessities through online platforms and websites. These shopping services can be offered by both completely online platforms that do not have a physical presence as well as brick and mortar stores. The online grocery offers various benefits such as saving time and money by avoiding the line in stores and cutting gas as well as parking costs, offering bulk buying at ease, discounts on several products, etc.
India Online Grocery Market Forecast and Trends
Growth Drivers
Increasing Popularity of Online Grocery Platforms
The increasing working population and their changing lifestyle are emerging as the major factors influencing the growth of the India online grocery platforms. A large percentage of the population living in urban cities in India such as Mumbai, Delhi, etc., are switching towards e-grocery stores such as BigBasket, Nature’s Basket, SPAR, Blinkit, etc., due to their quick delivery and great deals and discounts. Online grocery shopping offers the convenience of shopping through a wide range of products from the comfort of homes, which is attracting the target consumers resulting in driving the market growth.
Rising Public-Private Investment in Indian Online Grocery
The Indian online grocery industry is attracting significant investments due to its expanding potential. According to McKinsey’s State of Grocery Retail in India report, India's online grocery sector attracted around 70% of the global grocery investments which is around USD 7 billion out of USD 10 billion investments in the year 2020 alone. Big players such as Reliance Retails are among the leading companies that grabbed the investment of USD 5 billion. Such investments are significantly driving the growth of the India online grocery market.
Restraints
High Inventory Cost and Delivery Rates
The inventory cost-burdened by the online grocery market players acts as a major restraining factor for the growth of the India online grocery market. The companies had to invest significant amounts into managing and storing the groceries that needed to be delivered in real-time. Furthermore, the durability of certain groceries such as fruits and vegetables or dairy items is also limited, which increases the risks of losses during storage in case of low demand.
Impact of COVID-19 on India Online Grocery Market
The India online grocery market witnessed tremendous growth post the COVID-19 pandemic outbreak in the country. The lockdown restrictions hindered the supply chains for food items and panic buying among customers also created a huge shortage of products in the stores. Furthermore, the customers were reluctant to visit in-person to stores for grocery shopping due to the risk of virus transmission. In such a scenario, online grocery platforms emerged as an effective solution for the needs of grocery shopping among consumers. This trend is anticipated to surge in this post lockdown period as well.
India Online Grocery Market - By Product
The India online grocery market product-wise is segmented into fresh produce, breakfast and dairy, snacks and beverages, meat and seafood, staples and cooking essentials, etc. The staples and cooking essentials segment holds the largest share in India online grocery market. The demand for staples such as cereals, and cooking essentials such as oil, salt, etc., is very prominent among Indian consumers as they are basic for daily consumption. This is significantly driving the demand for staples and cooking essentials segments.
India Online Grocery Market - By Payment
Based on payment, the India online grocery market is segmented into online and offline (cash on delivery). The online payment method accounts for the largest market share owing to the increasing acceptance of debit/credit cards as a mode of payment and the rising popularity of online payment platforms such as Paytm, PhonePe, Google Pay, etc., among Indian consumers. However, offline payment also covers a substantial market share as it allows the expansion of online grocery in rural areas as well with an unbanked population.
Competitive Landscape
The leading market players of the India online grocery market are Amazon India Pvt. Ltd., UrDoorstep eRetail Pvt. Ltd., Godrej Nature's Basket Ltd., Spencer's Retail, Grofers India Pvt. Ltd., Reliance Retail Ltd. (Reliance Fresh), Paytm E-Commerce Pvt. Ltd. (Paytm Mall), and other prominent players.
The India online grocery market is highly consolidated with the presence of a limited number of industry participants. The companies are focusing on offering all sorts of grocery products to boost their sales and gain a competitive edge. They are also investing in geographical expansion and improving their distribution channels. The adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.
Recent Development
-
In February 2022, BigBasket, India’s leading online grocery seller, announced that it had acquired Kerala-based startup Agrima Infotech’s customer vision technology platform, Psyight.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical data – 2018-2021 |
Base Year – 2021 |
|
Forecast – 2022 – 2028 |
|
Facts Covered |
Revenue in USD Billion |
Market Coverage |
North India, South India, East India, West India |
Product Service/Segmentation |
By Product, By Payment, By Region |
Key Players |
Amazon India Pvt. Ltd., UrDoorstep eRetail Pvt. Ltd., , Godrej Nature's Basket Ltd., Spencer's Retail, Grofers India Pvt. Ltd., Reliance Retail Ltd. (Reliance Fresh), Paytm E-Commerce Pvt. Ltd. (Paytm Mall), and other prominent players. |
By Product
-
Fresh Produce
-
Breakfast and Dairy
-
Snacks and Beverages
-
Meat and Seafood
-
Staples and Cooking Essentials
-
Others
By Payment
-
Online
-
Offline
By Region
-
North India
-
South India
-
East India
-
West India
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumption & Limitation
- Qualitative Research
- Executive Summary
- India Online Grocery Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Restraints
- Opportunities
- Challenges
- Technological Landscape/Recent Development
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- India Online Grocery Market Overview
- Market Size & Forecast by Value, 2018-2028
- By Value (USD Million)
- Market Share & Forecast
- By Product Type
- Staples and Cooking Essentials
- Breakfast and Dairy
- Others
- Market Size & Forecast by Value, 2018-2028
-
- By Payment Methods
- Online
- Offline
- By Region
- North India
- South India
- East India
- West India
- By Payment Methods
- Competitive Landscape
- List of Key Players and Their Offerings
- Market Share Analysis, 2021
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Development (Merger, Acquisition, Partnership.)
- Impact of COVID-19 on Online Grocery Industry
- Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
- Amazon India Pvt. Ltd.
- Godrej Nature's Basket
- Grofers India Pvt
- Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
- Reliance Retail Ltd. (Reliance Fresh)
- Spencer's Retail
- Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
- UrDoorstep eRetail Pvt. Ltd.
- Other prominent players.
- Key Strategic Recommendations
List of Figures
Figure 1 India Online Grocery Market Segmentation
Figure 2 India Online Grocery Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2021
Figure 4 India Online Grocery Market Size, By Value (USD Million), 2018-2028
Figure 5 India Online Grocery Market Share, By Product Type, By Value, 2018-2028
Figure 6 India Online Grocery Market Share, By Payment Mode, By Value, 2018-2028
Figure 7 India Online Grocery Market Share, By Region, By Value, 2018-2028
List of Tables
Table 1 India Online Grocery Market Size, By Product Type, By Value, 2018-2028
Table 2 India Online Grocery Market Size, By Payment Mode, By Value, 2018-2028
Table 3 India Online Grocery Market Size, By Region, By Value, 2018-2028
Table 4 Amazon India Pvt. Ltd. Company Overview
Table 5 Amazon India Pvt. Ltd. Financial Overview
Table 6 Godrej Nature's Basket Company Overview
Table 7 Godrej Nature's Basket Financial Overview
Table 8 Paytm E-Commerce Pvt. Ltd. (Paytm Mall) Company Overview
Table 9 Paytm E-Commerce Pvt. Ltd. (Paytm Mall) Financial Overview
Table 10 Reliance Retail Ltd. (Reliance Fresh) Company Overview
Table 11 Reliance Retail Ltd. (Reliance Fresh) Financial Overview
Table 12 Supermarket Grocery Supplies Pvt. Ltd. (BigBasket) Company Overview
Table 13 Supermarket Grocery Supplies Pvt. Ltd. (BigBasket) Financial Overview
Market Segmentation
By Product
- Fresh Produce
- Breakfast and Dairy
- Snacks and Beverages
- Meat and Seafood
- Staples and Cooking Essentials
- Others
By Payment
- Online
- Offline
By Region
- North India
- South India
- East India
- West India
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