India’s quick commerce grocery market to triple by 2027: Report

Bengaluru: India’s ballooning quick commerce market (grocery) which has been growing exponentially is expected to triple between 2024 and 2027, reaching about Rs 1.5 lakh crore to Rs 1.7 lakh crore, according to a report by global consulting firm Kearney out on Thursday. India's quick commerce market was valued at $6-7 billion in 2024. 

Quick commerce is reshaping India’s consumer market by driving a shift in consumption and premiumisation across selected categories, largely in tier 1 and tier 2 cities. However, the report suggests that quick commerce is expected to extend to far more towns in the coming time.

Before the advent of quick commerce, only 33% online shoppers chose e-commerce platforms for their grocery shopping. However, with its growing popularity, this has soared to 87%, highlighting a major consumer shift toward digital-first shopping, largely because of the convenience and rapid delivery. 

While dry groceries see a good demand, the purchase of fresh produce (fruits and vegetables) online is lower, indicating that consumers still prefer to handpick non-packaged items. In fact, consumers often complain of stale or rotten products delivered. 

Quick commerce platforms have also been expanding their offerings, from offering clothes to electronics, including air conditioners in under 30 minutes. However, adoption in categories of electronics and personal care remains low, likely because of the limited assortment offered by quick commerce platforms in their early stages. As the sector evolves, an expanded product mix could boost adoption in these categories, the report said.

A comparison of market prices shows that modern trade and e-commerce platforms consistently offer the biggest discounts to shoppers in the range of 13-18%. “Price discounting in quick commerce is seen at 6-9%, compared with general trade, which ranges from 2-5%,” it added.

Various company and shops food grains delivery boys service to house steps in Bengaluru on Saturday 26th October 2024. DH Photo/ S K Dinesh