India Online Grocery Market: Current Analysis and Forecast 2021-2027

India Online Grocery Market was valued at US$ 2.7 Billion in 2020 and is anticipated to reach US$ 58.5 Billion by 2027 displaying an elevated CAGR of 52.3% over the forecast period (2021-2027).
A rise in internet penetration, rising working women, hectic lifestyle in India are some of the prominent reasons, contributing to the market of e-grocery. With over 560 million internet users, India is the second-largest online market in the world, ranked only behind China. It was estimated that by 2023, there would be over 650 million internet users in the country. Despite the large base of internet users, the internet penetration rate in the country stood at around 50 percent in 2020. his meant that around half of the 1.37 billion Indians had internet access that year. There has been a consistent increase in internet accessibility compared to just five years ago when the internet penetration rate was around 27 percent. Furthermore, The number of Indian internet users is expected to increase by 45% in the next five years to 900 million in 2025 from around 622 million in 2020, as revealed by IAMAI-Kantar ICUBE 2020. This increase will be driven by higher adoption in rural India, which has clocked a 13% growth to 299 million internet users over the past year, or 31% of India's rural population.
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), UrDoorstep eRetail Pvt. Ltd., ZopNow Retail Pvt Ltd and MyGrahak Shopping Online Limited, etc, are some of the prominent players operating in the Online Grocery market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.
Insights Presented in the Report
"Amongst Category, Staples & Cooking essentials segment holds the major share"
Based on the Category, the market is fragmented into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples& Cooking essentials, and Others. The Staples and Cooking essential segment of the India Online Grocery Market grabbed the major market share and dominated the market.
"Amongst Payment Method, Cash on the Delivery segment to dominate the market during the forecast period"
Based on the Payment Method, the market is fragmented into Online, Cash on Delivery, E-Wallets, and Others. The Cash on Delivery segment grabbed major market share in 2020. However, the online segment would emerge in the forecast period and would witness the highest CAGR during the forthcoming period as well.
"Amongst Purchase Type, Palletizing segment grabbed Major Market share in 2020"
Based on Purchase type, the market is fragmented into One-Time purchase and Subscription. The one-time purchase segment grabbed major market revenue share in 2020. However, the subscription segment would emerge in the forecast period and would witness the highest CAGR during the forthcoming period as well
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Amongst Platform Type, Web-Based segment grabbed Major Market share in 2020"
Based on the platform type, the market is segmented into App-based and Web-based. Web-based segment grabbed significant market share in 2020. Moreover, this segment is expected to showcase a considerable growth during 2021-2027. Furthermore, the app-based segment is expected to witness the highest CAGR during the forecast period.
"South India represents one of the largest markets of Online Grocery market"
For a better understanding of the market dynamics of the Online Grocery market, a detailed analysis was conducted for different regions across the globe including East, West, North, and South. South region dominated the market owing to the change in lifestyle and growing demand for processed and packaged food.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
- The report presents a quick review of overall industry performance at one glance
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional level analysis of the industry
Customization Options:
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The online shopping for groceries is not a new phenomenon in India as it has been there for the past many years. Ordering online for groceries such as daily FMCG products, vegetables etc. have propelled the e-commerce market in India towards hasty growth. Moreover, , the e-grocery sector got a major boost during 2019-2020 due to the COVID-19 pandemic, when out of necessity, most Indian households wo were not buying online earlier, also started to shop online for groceries due to several government regulations and lockdown in county
As of 2020, there are around 130 Million e-grocery addressable household in India. Moreover, a rise in internet penetration coupled with the adoption of smart phone is one of the prominent reason, driving the online grocery market in India. As per the World Bank, the internet penetration in India has increased from 17% in 2015 to 34.4% in 2019. Also, In 2020, the penetration rate of smartphone in India reached 54% and was estimated to reach 96% in 2040, as reveled by Statista. Also, the surging digitalization by the small players is also acting as a growth catalyst to the industry. More than 90 percent of the market is unorganized, dominated by more than 13 million small mom-and-pop stores, As per a report by Kearney, More than 25 percent of the organized grocery market's growth over the next few years could come from online shopping.
A rise in the working couple and nuclear families in Country is leading to the greater demand for the e-services including online grocery. As per the world bank there were about 477.3 Mn people employed in the country in 2015, the number increased to 494.7 Mn in 2019. Also, more than 50% families in the country are nuclear, as per Indian Census Data. The hectic and bust lifestyle leads to the growing demand for the online grocery.
Based on the Category, the market is fragmented into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples& Cooking essentials and Others. The Staples and Cooking essential segment of the India Online Grocery Market grabbed the major market share and dominated the market. The segment captured around 39.8% market share and generated USD 1,057.7Mn in 2020 and is expected to grow at a CAGR of 52.8% during the forthcoming years.
Based on the Payment Method, the market is fragmented into Online, Cash on Delivery, E-Wallets and Others. The Cash on Delivery segment grabbed major market share and captured 69.7% market revenue in 2020. However, the online segment would emerge in the forecast period and would witness the highest CAGR during the forthcoming period as well and would reach USD 12,984.7 Mn by 2027
Based on the Purchase Type, the market is segregated into One-Time purchase and Subscription. The One-Time Purchase segment grabbed Lion's share and dominated the market. The segment captured 64.2% market share to reach a market valuation of USD 1,708 Mn in 2020. However, the subscription-based purchase type would witness the considerable CAGR of 54.1% during the forth coming years
Based on the platform type, the market is segmented into App-based and Web-based. Web based segment grabbed 53% market share and gathered USD 1,409.6 Mn in 2020. Moreover, this segment is expected to reach USD 27,324.9 Mn by 2027 with a growth of 49.5% CAGR during 2021-2027. Furthermore, the app-based segment is expected to witness the highest CAGR during the forecast period to reach the market valuation of USD 31,155.4 Mn by 2027
For a better understanding of the market adoption of the Online Grocery Market, the market is analyzed based on its regional presence in the country. The regions covered in the study are East, West, North and South. The South India constitutes a major market for the Online Grocery industry and generated revenue of USD 977.1 Million in 2020 owing to the increase in the demand for online delivery due to rising working couple, busy & hectic lifestyle
Some of the major players operating in the 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), UrDoorstep eRetail Pvt. Ltd., ZopNow Retail Pvt Ltd and MyGrahak Shopping Online Limited etc,.