The India online grocery market size is projected to surpass USD 3.2 billion in 2023 and is estimated to reach a valuation of USD 6.8 billion by 2033. The India online grocery market share is projected to thrive at a CAGR of 7.8% from 2023 to 2033.
The urbanization trend in Indian cities has led to increasingly stressful lifestyles. As more people flock to urban areas in search of employment, the demand for convenient shopping options has surged. Online grocery shopping has emerged as an ideal solution for urban dwellers, streamlining the process by eliminating the hassles of commuting and navigating crowded stores.
With the rapid rise of smartphone usage and internet access across India, consumers are becoming more comfortable with online transactions. The proliferation of digital devices and reliable internet connections has expanded the reach of grocery shopping, thanks to the introduction of mobile apps and user-friendly websites.
To capitalize on this growing market, businesses in India’s online grocery sector have heavily invested in supply chain management, logistics, and technology. These investments have led to significant enhancements in the overall shopping experience, including faster delivery times, improved user interfaces, and the use of artificial intelligence to provide personalized product recommendations.
“Some businesses in the online grocery industry have embraced omnichannel tactics, fusing their online and offline presences. Customers can pick between online and in-store purchasing using this strategy, providing flexibility and accommodating a range of tastes. With choices like click-and-collect services, it also contribute to the maintenance of a seamless shopping experience.”—opines our key market analyst.
Key Takeaways from the India Online Grocery Market Report:
- In 2018, the market stood at USD 1.48 billion.
- In 2022, the market stood at USD 2.0 billion.
- The snacks & beverages segment occupies nearly 28.90% of the market shares in 2023.
- Online payment method is highly preferred, occupying 67.9% of the market shares in 2023.
- North India leads the market in terms of sales and growth.
Recent Developments Observed by FMI:
- High-end grocery retailer Namdhari’s Agro Fresh Pvt. Ltd. announced in July 2023 that it is looking to raise between US$ 20 million and US$ 30 million as it attempts to grow beyond South India.
- In December 2022, BigBasket raised an extra US$ 200 million through financing, bringing its total value as a Tata Digital-owned online supermarket to US$ 3.2 billion. Tata Digital, which owns 64% of the Bengaluru-based company, was joined by additional investors in the financing round.
Note from the Leading Analysts:
“The Indian online grocery market is expected to experience growth in the next years due to changing customer preferences, technical developments, and a commitment to satisfying the needs of an expanding urban population. Online grocery platforms’ convenience, a wide range of products, and affordable prices correspond to Indian consumers’ shifting expectations. To take advantage of the growing prospects within this dynamic industry, market stakeholders are encouraged to keep investing in innovation and customer-centric solutions,” says an FMI analyst.
Purchase the Report for Key Insights
India Online Grocery Market Segmentation
By Product Type:
- Fresh Produce
- Breakfast & Dairy
- Snacks & Beverages
- Meat & Seafood
- Staples & Cooking Essentials
- Others
By Payment Method:
- Online
- Offline (Cash on Delivery)
By Region:
- South India
- North India
- East India
- West India
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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