Report Overview

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

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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. India Online Grocery Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. India Online Grocery Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
   3. By Product Type
      1. Staples and Cooking Essentials
      2. Breakfast and Dairy
      3. Others

5. 4. By Payment Methods
      1. Online
      2. Offline
   5. By Region
      1. North India
      2. South India
      3. East India
      4. West India
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership.)
7. Impact of COVID-19 on Online Grocery Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Amazon India Pvt. Ltd.
   2. Godrej Nature's Basket
   3. Grofers India Pvt
   4. Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
   5. Reliance Retail Ltd. (Reliance Fresh)
   6. Spencer's Retail
   7. Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
   8. UrDoorstep eRetail Pvt. Ltd.
   9. Other prominent players.
9. 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