India Online Grocery Market Current Trends, Production Analysis, Product Types and End-user breakdown

Posted on 2022-08-09 by researchinsights in Industrial, Technology // 0 Comments

San Francisco, Calif., USA, Aug 09, 2022 — /EPR Network/ —

India Online Grocery Industry Overview

The India online grocery market size was valued at USD 2.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 37.1% from 2021 to 2028. The market has gained immense traction over the past months on account of the changing lifestyle of the consumers, growing urbanization, and the tech-savvy generation who prefers buying products online. With the growth in disposable incomes and busier lifestyles, people are increasingly seeking out customizable and convenient online platforms for grocery shopping instead of walking down to the neighborhood vendors. The preference for online delivery of grocery products became more visible following the COVID-19 outbreak. With the social distancing standards, consumers are turning their focus to online grocery shopping, which is not only convenient but is a safer option.

The market is projected to witness significant growth in the years to come. Initiatives such as no contact delivery and online payment have attracted consumers toward buying their regular grocery from several online platforms, like Amazon, BigBasket, Grofers, and many more. With the safety concerns encircling coronavirus and a large section of the citizens working from home, the dependence of consumers on the online platform has increased significantly. This, in turn, has provided several growth avenues to the market.

Gather more insights about the market drivers, restraints and growth of the India Online Grocery market

The establishment of the new normal in India has pushed every sector to adapt and embrace ways that prove effective on hygiene as well as safety factors. People need to follow social distancing at public places and even at retail grocery stores, which takes a lot of their time. On the contrary, consumers realized that online grocery shopping, along with contactless delivery, not only saves time but is also safe. Moreover, individuals working from home are trying their best to balance their work and life and are finding it convenient to order their groceries online with a few clicks from their handheld devices.

The market is also expected to be supported by the declining data tariffs and availability of cheaper smartphones. Increased internet penetration and the boom of digital payment have acted as additional factors driving the market. The online grocery market in India is being propelled by the ever-increasing internet penetration in the country, along with an upsurge in digital awareness. With the growing access to smartphones and low data costs, consumers now prefer an omnichannel shopping experience.

With the government promoting the digital economy framework and digital literacy, the online grocery market in India is likely to witness a further impetus in its growth. The industry is expected to be driven by the consumers who stay in Tier-I cities, such as Bangalore, Chennai, Mumbai, and Delhi, who are more adaptable to online shopping due to the availability of high-speed internet, better adaptability to mobile devices, and the logistical simplicity. The government is unlocking things in a stepwise manner; hence the concerns related to the supply chain and workforce are improving to a greater extent. Thus, factors like convenience, smart shopping, and hygiene concerns are making online grocery shopping the better choice for consumers.

Browse through Grand View Research’s Technology Industry Related Reports

Online Grocery Market – The global online grocery market size was valued at USD 285.70 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 25.3% from 2022 to 2030.

E-commerce Market – The global e-commerce market size was valued at USD 9.09 trillion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027.

India Online Grocery Industry Segmentation

Grand View Research has segmented the India online grocery market on the basis of product type, payment method, and region:

India Online Grocery Product Type Outlook (Revenue, USD Million, 2017 – 2028)

Fresh Produce
Breakfast & Dairy
Snacks & Beverages
Meat & Seafood
Staples & Cooking Essentials
Others

India Online Grocery Payment Method Outlook (Revenue, USD Million, 2017 – 2028)

Online
Offline (Cash on Delivery)

India Online Grocery Regional Outlook (Revenue, USD Million, 2017 – 2028)

South India
North India
West India
East India

Market Share Insights:

November 2020: Amazon India Pvt. Ltd. commenced the operations of its online grocery store Amazon Fresh in 4 more cities, namely Pune, Ahmedabad, Kolkata, and Chennai.

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