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India Online Grocery Market: By Category: Beverages, Bakery, Canned Goods, Dairy, Frozen Foods, Meat, Fresh Fruits and Vegetables, Homecare Cleaners, Personal Care; By Food Ordering Method: Website, Mobile Application; by Average Spend per Transaction (in Rupees): < 1000, 1000 to 1500, > 1500; By Payment Method: Online, Cash on Delivery; By Cities: Bangalore, Delhi-NCR, Mumbai, Hyderabad, Pune, Others; Historical Supply and Demand (2014-2018); Supply and Demand Forecast (2019-2024); SWOT Analysis; Value Chain Analysis; Cost Analysis; Competitive Landscape & Supplier Analysis

India Online Grocery Market Key Insights:

  • India Online Grocery Market Performance
  • India Online Grocery Market Analysis and Outlook 2019-2024
  • Price Trends
  • SWOT Analysis
  • Breakup by Region
  • Cost Analysis
  • Competitive Landscape
  • Value Chain Analysis
  • Mergers and Acquisitions

 

Market Outlook

The India online grocery market attained a value of USD 2 billion in 2018. The fluctuating market is highly dependent on investments but is expected to show a steady growth in the coming few years.

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:

  • 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.

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 2019- 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.

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 (2014-2018) & Forecast (2019-2024)
        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 (2014-2018) & Forecast (2019-2024)
            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 (2014-2018) & Forecast (2019-2024)
            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 Ordering Method
            4.1.6.1    Website
            4.1.6.2    Mobile Application
        4.1.7    Figure: India Online Grocery Market Breakup by Food Ordering Method: Historical Market (2014-2018) & Forecast (2019-2024)
            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 (2014-2018) & Forecast (2019-2024)
            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 (2014-2018) & Forecast (2019-2024)
            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    Events and Developments

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