India Online Grocery Market to Grow with a CAGR of 35.18% through 2030F

The India online grocery market is growing due to increasing internet penetration, changing consumer preferences, the convenience of home delivery, and the rise in disposable incomes, especially in urban areas.

According to TechSci Research report, “India Online Grocery Market – By Region, Forecast & Opportunities, 2030F”, the India Online Grocery Market was valued at USD 8.82 Billion in 2024 and is expected to reach USD 53.67 Billion by 2030 with a CAGR of 35.18% during the forecast period. The Indian online grocery market has experienced remarkable growth over the past decade, driven by several factors that include increasing internet penetration, changing consumer lifestyles, and a surge in mobile commerce. As one of the largest e-commerce sectors in India, the online grocery market is projected to continue its upward trajectory. This market is characterized by a variety of players, from well-established giants like BigBasket and Amazon Pantry to new entrants like Grofers and JioMart, each vying for a slice of the growing consumer base. With more consumers turning to digital platforms for their daily grocery needs, the market is evolving rapidly to meet consumer demand for convenience, product variety, and quality.

The adoption of smartphones, coupled with affordable data plans, has led to an increase in the number of online grocery shoppers, particularly in urban areas. According to recent reports, over 90% of internet users in India have accessed e-commerce platforms, and a significant portion of these transactions is for grocery items. The convenience of ordering groceries online, the ability to compare prices, and the delivery services available across urban and semi-urban regions have transformed consumer behavior. More than ever, time-starved consumers prefer to shop for groceries at the click of a button, particularly during weekends or festivals when shopping habits spike. Furthermore, the COVID-19 pandemic accelerated the shift towards online grocery shopping as consumers were compelled to avoid crowded markets and prefer contactless shopping options. Many consumers, initially hesitant to embrace online grocery shopping, found it to be a safer and more efficient option during the lockdown. With health and safety concerns at the forefront, platforms such as BigBasket and Grofers saw a surge in new users, and existing users increased their basket size. The pandemic also raised the importance of hygiene, with platforms ensuring that deliveries were sanitized, and contactless delivery methods were introduced. As life gradually returned to normal, the habits formed during the pandemic largely remained intact, with consumers continuing to use online platforms for their grocery shopping.

The Indian online grocery market is also being driven by innovations in delivery models. Hyperlocal delivery, which focuses on delivering groceries from nearby warehouses to customers within a short time frame, has become an important feature of many e-commerce platforms. This model allows platforms to offer same-day or next-day delivery services, ensuring that customers receive fresh produce, dairy products, and other essentials quickly. Companies like BigBasket and Grofers have adopted this strategy, opening smaller warehouses in key locations, thus reducing delivery time and increasing customer satisfaction. Additionally, some platforms are investing in AI and machine learning to optimize logistics and predict consumer behavior. These advancements ensure that consumers have an increasingly efficient and personalized shopping experience, making online grocery shopping not only more accessible but also more reliable.

The future of India’s online grocery market is promising, with estimates indicating that the sector could grow by leaps and bounds over the next few years. Factors like the expanding middle class, increasing urbanization, and a greater willingness to adopt digital payment solutions further fuel this growth. The demand for premium, organic, and health-focused products is also on the rise, with many platforms tapping into this niche by offering such items. A key challenge for online grocery retailers will be maintaining the balance between quality, cost, and delivery speed. Additionally, ensuring that smaller, regional players can compete with established giants will be critical to fostering healthy competition in the market. However, with continuous improvements in technology, logistics, and customer service, the Indian online grocery market is poised to achieve even greater success in the coming years.

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on " India Online Grocery Market” 

The India Online Grocery Market is segmented into product type, payment mode, sales platform, regional distribution, and company.

In the Indian online grocery market, offline payment methods are currently growing faster than online payments. Despite the increasing adoption of digital payments, many consumers, particularly in semi-urban and rural areas, prefer paying cash on delivery (COD) due to concerns about security and trust. COD offers a sense of assurance to customers who are hesitant about online transactions. This shift is also influenced by the wide usage of mobile wallets and UPI (Unified Payments Interface) as payment options, which contribute to the growth of offline modes. Retailers are responding by offering flexible payment methods to cater to this demand.

West India has emerged as the fastest-growing region in India's online grocery market. The growth is driven by factors such as high urbanization, increasing disposable incomes, and a tech-savvy population in cities like Mumbai, Pune, and Ahmedabad. The region benefits from a strong digital infrastructure, making online grocery shopping more accessible. Consumers in West India are increasingly seeking convenience, quality, and variety, which platforms are meeting through faster deliveries and wide product assortments. This trend is expected to continue as more people embrace e-commerce for their daily grocery needs.

Major companies operating in India Online Grocery Market are:

• Amazon India Limited (Amazon Fresh)
• Innovative Retail Concepts Private Limited (BigBasket)
• Avenue E-Commerce Limited (DMart Ready)
• Dunzo Digital Private Limited
• Flipkart Internet Private Limited (Flipkart Supermart)
• Blink Commerce Private Limited (Blinkit)
• One97 Communications Limited (Paytm Mall)
• Reliance Retail Ltd. (Reliance Fresh)
• Swiggy Limited (Instamart)
• Kiranakart Technologies Private Limited (Zepto)

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“The Indian online grocery market has experienced significant growth, fueled by factors like increased smartphone penetration, affordable internet access, and evolving consumer preferences for convenience. Consumers in urban and semi-urban areas are increasingly opting for online platforms due to ease of shopping, time-saving benefits, and the ability to compare prices. The market has seen a surge in demand for grocery deliveries, especially during festivals and the pandemic. As more players enter the market and technology improves, this trend is expected to continue, with projections showing substantial growth in the coming years.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

India Online Grocery Market Segmented, By Product Type (Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, Others), By Payment Mode (Online, Offline), By Sales Platform (Mobile Application, Desktop Website), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Online Grocery Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Online Grocery Market.

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