Online Grocery Market in India is expected to expand at 68.66% CAGR till 2023
According to a new Research On Global Markets report, the online grocery market in India is expected to expand at a high compound annual growth rate (CAGR) of 68.66% during the 2018-2023 period, and reach a value of INR 1,034.13 Bn by 2023, compared to its 2018 value of INR 62.01 Bn.
Despite the online grocery market in India still being at a nascent stage, with only 0.15% Indians leveraging online channels for grocery shopping, the remarkable growth forecast is mainly based on growing customer acceptance, increasing internet and smartphone penetration, new market entries, and increasing focus of e-commerce giants like Amazon and Flipkart in the grocery segment.
According to the report, the adoption of online grocery platforms in India has increased in recent years due to the rising awareness about the convenience of the process, digital literacy, and internet penetration across the country. Also, major players in this segment are looking to invest heavily on customer retention as grocery is an essential commodity for every household. Therefore, customer acceptance, and high investment on customer retention is expected to lead to further growth of the online grocery market in India.
The online grocery market in India forms a part of the e-services industry, and operates in liaison with grocers either in the form of a supermarket, e-commerce platform, or a brick-and-mortar grocery store that offers the option of ordering groceries online. The Indian grocery market is dominated by 12 Mn local physical grocery stores, and it is from these stores that most of the Indian families still prefer purchasing grocery. This is proving to be significant hindrance for the major players in the online grocery market in India, in terms of generating revenue, according to Research On Global Markets.
Research On Global Markets also tracks the performance of some of the major players operating in the online grocery market in India including Amazon India Pvt. Ltd., Godrej Nature’s Basket Ltd., Grofers India Pvt. Ltd., Paytm E-Commerce Pvt. Ltd. (Paytm Mall), Reliance Retail Ltd. (RelianceSmart.in), Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), UrDoorstep eRetail Pvt. Ltd., and ZN Retail Pvt. Ltd, among others.
Key highlights of this report:
- Online grocery market business models – overview
- Online grocery market - logistics value chain
- Market size and growth forecast – value-wise (2016-2023e)
- Key growth drivers of the market
- Key deterrents to the growth of the market
- Key trends of the market
- Analysis of the competitive landscape and profiles of the major players operating in the market
Check out the Research on Global Markets report featured in this article:
This report has been formulated and designed with the purpose of giving businesses a concise understanding of the demand for online grocery stores in India to determine the viability of the market, develop strategies based on the drivers, and to help brands identify competition and respond accordingly.