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India Online Grocery Market: By Category: Grocery and Staples, Fruits and Vegetables; By Average Spend per Transaction; By Food Platform; Website, Mobile Application; By Payment Method: Online, Cash on Delivery; By Cities; Historical Market and Forecast (2016-2026); Competitive Landscape; Industry Events and Developments

India Online Grocery Market Outlook

The India online grocery market attained a value of USD 2.2 billion in 2020. The fluctuating market is highly dependent on investments but is expected to show a steady growth in the coming few years.

 

India Online Grocery Market

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The online sales of fast-moving consumer goods (FMCG) grew by a robust 30% in March 2017, as compared to the previous year. While the online grocery industry accounts for only 4.6% of all distribution channel, it is expected to be the fastest growing distribution channel for groceries. India is one of the fastest developing economies in the world and is the fourth largest retail market globally after the US, China, and Japan. The country's retail sector is dominated by the food and grocery segment. Apparel and footwear, consumer durables, and IT are the other significant retail sectors in India. In 2018, the food and grocery retail sector in the Asian country was estimated to be worth USD 380 billion. However, the industry is dominated by traditional distributional channels such as 'kirana' stores or neighbourhood shops. Supermarkets and hypermarkets are also emerging trends within the sector. Currently, the online grocery industry in India accounts for only 0.3% of the total Indian retail industry.

While less than 2 million of Indian grocery consumers buy their groceries through online platforms, the industry has the potential for growth in the country, especially with the increased in the penetration of the internet. The industry will also find impetus in the overall growth of the e-commerce industry in the country, which is expected to attain USD 84 billion in 2021, growing from USD 24 billion in 2017. The online grocery industry in India is highly concentrated with Big Basket and Grofers dominating the industry with over 70% market share. While Big Basket is thriving in regional markets like Bangalore and Hyderabad, Grofers is the leading players in the Delhi-NCR region. Other niche players focussing on specific sectors like milk delivery and meat account for about 3% of the market share in the Indian industry.

 

Properties and Applications

An online grocery store can either be an independent e-commerce service selling grocery or a brick-and-mortar grocery store or supermarket that allows online ordering. The customers can place their orders either through e-commerce websites or mobile applications. These platforms can include beverages, bakery, canned goods, dairy, frozen foods, meat, fresh fruits and vegetables, homecare cleaners, and personal care products, among others. The average spending per transaction on these platforms in India can be < INR 1000, INR 1000 to INR 1500, or > INR 1500. Based on payment methods, the market can be bifurcated into:

 

India Online Grocery Market By Category

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  • Online
  • Cash on Delivery

The EMR report also looks in-depth into the regional markets in India like Bangalore, Delhi-NCR, Mumbai, Hyderabad, and Pune, among others.

 

India Online Grocery Market By Region

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Market Analysis

The online grocery market in India is being driven by the growing internet penetration in the country, along with a rise in digital awareness. India has more than 430 million internet users, and the number of internet users is expected to increase to about 635.8 million by 2021. The online grocery industry in India is also likely to be aided by the increasing availability of cheaper smartphones and declining data tariffs. With the government promoting digital literacy and the digital economy framework, the industry will receive a further impetus for its growth. The industry is expected to be aided by the consumers in Tier-I cities who are more adaptable to online shopping due to the availability of highspeed internet, better adaptability to mobile devices, and the logistical simplicity.

With the growth in disposable incomes and increasingly busier lifestyles, people are increasingly seeking out the customisable and convenient online platforms for grocery. Indian consumers are also starting to experiment with international brands and cuisines, further propelling the industry forward. They are also willing to pay more for premium and organic food. Further, the industry will be driven by the younger generation who are willing to spend more for convenience. The industry is also finding impetus in the rise in the number of women in the workforce.

The rise in investments of Private Equity (PE) and Venture Capital funds into India's online retail and consumer internet sector will also aid the online grocery industry. An estimated USD 25 billion has been invested into these platforms over the past five years due to the size of the projected market and the high growth potential of the industry in the country. In the coming years, the industry is expected to be driven by consumers using local languages over English from Tier-I as well as Tier-II/III cities. Thus, major players are expected to adapt their platforms to local languages and introduce better voice search features to expand their potential consumer base. Other attractive offers like low delivery charges, fast delivery, cashback offers, and flexible return policies by e-commerce websites dealing with groceries are also expected to drive the industry in the coming years.

 

Competitive Landscape

March 2020- BigBasket, the online grocery platform, joined the coveted Unicorn Club by raising USD 150 million in fresh funding from Alibaba, its largest shareholder, and other new investors like UK's CDC Group and South Korea's Mirae Asset.

The report gives a detailed analysis of the following key players in the India online grocery market, covering their market share, capacity, and latest developments like mergers and acquisitions, capacity expansions, and plant turnarounds:

  • Big Basket
  • Grofers
  • Amazon India (Pantry & Now)
  • Flipkart Supermart
  • Spencer’s
  • Spar
  • Godrej Nature’s Basket
  • Milk Basket
  • D’Mart
  • UrDoorStep
  • Paytm

The EMR report assesses the market based on Porter's Five Forces model. It also provides a SWOT analysis.

 

REPORT FEATURES DETAILS
Base Year 2020
Historical Period 2016-2020
Forecast Period 2021-2026
Scope of the Report Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Category, Average Spend per Transaction (in Rupees), Food Platform, Payment Method, Cities
Breakup by Category Grocery and Staples, Fruits and Vegetables, Others
Breakup by Average Spend per Transaction (in Rupees) < 1000, 1000 to 1500, > 1500
Breakup by Food Platform Website, Mobile Application
Breakup by Payment Method Online, Cash on Delivery
Breakup by Cities Bangalore, Delhi-NCR, Mumbai, Hyderabad, Pune, Others
Market Dynamics SWOT, Porter's Five Forces, EMR’s Key Indicators for Price and Demand
Competitive Landscape Market Structure, Company Profiles- Company Overview, Product Portfolio, Demographic Reach and Achievements, Certifications
Companies Covered Big Basket, Grofers, Amazon India (Pantry & Now), Flipkart Supermart, Spencer’s, Spar, Godrej Nature’s Basket, Milk Basket, D’Mart, UrDoorStep, Paytm
Report Price and Purchase Option Explore our purchase options that are best suited to your resources and industry needs.
Delivery Format Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option.

 

*We at Expert Market Research always thrive to give you the latest information. The numbers in the article are only indicative and may be different from the actual report.

1    Preface
2    Research Methodology
3    Executive Summary

    3.1    Market Overview
    3.2    Key Demand Drivers
    3.3    Key Players
    3.4    Supply Market Changes
4    India Online Grocery Market Overview
    4.1    India Online Grocery Market Analysis

        4.1.1    Figure: India Online Grocery Historical Market (2016-2020) & Forecast (2021-2026)
        4.1.2    Chart: India Online Grocery Market Breakup by Category
            4.1.2.1    Grocery and Staples
            4.1.2.2    Fruits and Vegetables
            4.1.2.3    Others
        4.1.3    Figure: India Online Grocery Market Breakup by Category: Historical Market (2016-2020) & Forecast (2021-2026)
            4.1.3.1    Grocery and Staples
            4.1.3.2    Fruits and Vegetables
            4.1.3.3    Others
        4.1.4    Chart: India Online Grocery Market Breakup by Average Spend per Transaction (in Rupees)
            4.1.4.1    < 1000
            4.1.4.2    1000 to 1500
            4.1.4.3    > 1500
        4.1.5    Figure: India Online Grocery Market Breakup by Average Spend per Transaction (in Rupees): Historical Market (2016-2020) & Forecast (2021-2026)
            4.1.5.1    < 1000
            4.1.5.2    1000 to 1500
            4.1.5.3    > 1500
        4.1.6     Chart: India Online Grocery Market Breakup by Food Platform
            4.1.6.1    Website
            4.1.6.2    Mobile Application
        4.1.7    Figure: India Online Grocery Market Breakup by Food Platform: Historical Market (2016-2020) & Forecast (2021-2026)
            4.1.7.1    Website
            4.1.7.2    Mobile Application
        4.1.8    Chart: India Online Grocery Market Breakup by Payment Method
            4.1.8.1    Online
            4.1.8.2    Cash on Delivery
        4.1.9    Figure: India Online Grocery Market Breakup by Payment Method: Historical Market (2016-2020) & Forecast (2021-2026)
            4.1.9.1    Online
            4.1.9.2    Cash on Delivery
        4.1.10    Chart: India Online Grocery Market Breakup by Cities
            4.1.10.1    Bangalore
            4.1.10.2    Delhi-NCR
            4.1.10.3    Mumbai
            4.1.10.4    Hyderabad
            4.1.10.5    Pune
            4.1.10.6    Others
        4.1.11    Figure: India Online Grocery Market Breakup by Cities: Historical market (2016-2020) & Forecast (2021-2026)
            4.1.11.1    Bangalore
            4.1.11.2    Delhi-NCR
            4.1.11.3    Mumbai
            4.1.11.4    Hyderabad
            4.1.11.5    Pune
            4.1.11.6    Others
    4.2    SWOT Analysis
        4.2.1    Overview
        4.2.2    Strengths
        4.2.3    Weaknesses 
        4.2.4    Opportunities
        4.2.5    Threats
    4.3    Value Chain Analysis
    4.4    Porter’s Five Forces Analysis

        4.4.1    Overview
        4.4.2    Buyer’s Power
        4.4.3    Supplier’s Power
        4.4.4    New Entrants
        4.4.5    Degree of Rivalry
        4.4.6    Substitutes
5    Cost Analysis
6    Competitive Landscape & Supplier Analysis

    6.1    Big Basket
    6.2    Grofers
    6.3    Amazon India (Pantry & Now)
    6.4    Flipkart Supermart
    6.5    Spencer’s
    6.6    Spar
    6.7    Godrej Nature’s Basket
    6.8    Milk Basket
    6.9    D’Mart
    6.10  UrDoorStep
    6.11  Paytm
7    Industry Events and Developments

Key Questions Answered in the Report

In 2020, the India online grocery market attained a value of nearly USD 2.2 billion.

The major drivers of the industry include growing internet penetration in the country, along with a rise in digital awareness and the government promoting digital literacy and the digital economy framework.

The increasing availability of cheaper smartphones and declining data tariffs is expected to be a key trend guiding the growth of the industry.

The major regions in the industry include Bangalore, Delhi-NCR, Mumbai, Hyderabad, and Pune, among others.

The categories of India online grocery available are grocery and staples, and fruits and vegetables, amongst others.

India online grocery can be categorised by spending into less than 1000, between 1000 and 1500, and greater than 1500.

India online grocery can have different food platforms of online grocery like websites and mobile applications.

The online grocery platforms can accept online payments and cash on delivery.

The leading players in this market are Big Basket, Grofers, Amazon India (Pantry & Now), Flipkart Supermart, Spencer’s, Spar, Godrej Nature’s Basket, Milk Basket, D’Mart, UrDoorStep, and Paytm, amongst others.

Analyst Review

The India online grocery market attained a value of USD 2.2 billion in 2020, driven by growing internet penetration in the country, along with a rise in digital awareness and the government promoting digital literacy and the digital economy framework. Aided by the increasing availability of cheaper smartphones and declining data tariffs, the market is expected to witness a further growth in the forecast period of 2021-2026.

EMR’s meticulous research methodology delves deep into the industry, covering the macro and micro aspects of the industry. Based on the categories, the India online grocery market can be segmented into grocery and staples, and fruits and vegetables, amongst others. By spending, the industry can be divided into less than 1000, between 1000 and 1500 and greater than 1500. India online grocery can have different food platforms of online grocery like websites and mobile applications. The online grocery platforms can accept online payments and cash on delivery. The major regional markets for online grocery are Bangalore, Delhi-NCR, Mumbai, Hyderabad, and Pune, among others. The key players in the above industry include Big Basket, Grofers, Amazon India (Pantry & Now), Flipkart Supermart, Spencer’s, Spar, Godrej Nature’s Basket, Milk Basket, D’Mart, UrDoorStep, and Paytm, amongst others.

EMR’s research methodology uses a combination of cutting-edge analytical tools and the expertise of their highly accomplished team, thus, providing their customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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