Due to a change in lifestyle, rising urbanization, and increased internet penetration in India’s rural areas, ordering groceries online has grown more and became more popular in recent years Following COVID-19 lockdowns in 2020, the online grocery sector has seen substantial growth as social distance standards and most Indian households have been pushed to use this method of grocery buying. The online grocery market has created a separate market segment of quick commerce to deliver groceries in a short span. Blinkit, Dunzo and other start-ups are pivoting this quick commerce segment. Spencer’s Retail Limited, Grofers India Private Limited, Avenue E-commerce Limited (DMart), Supermarket Grocery Supplies Private Limited (BigBasket), and Amazon India Limited are a few of the major market participants.

Market insights:
The online grocery market is expected to reach INR 2,146.75 Bn by 2027, expanding at a CAGR of ~34.09% during the forecast period (2022 – 2027). Even after the restrictions were relaxed, Indian consumers got used to the facilities of groceries at their doorstep, across Tier I, Tier II, and Tier III cities.

Segment insights:
The market is segmented based on the payment methods and type of products delivered through the modes of transport across regions. The online payment segment has grown immensely since 2020 and is expected to expand during the forecast period (2022 – 2027). The inclination for online payments, extensive smartphone use, and high internet penetration are the growth factors of online grocery market. Bangalore, Mumbai, and Delhi played major role for online grocery delivery in 2021 and is expected to register the highest CAGR during the forecast period.