What are the Factors Driving the Indian Online Grocery Market?

Posted on 2022-12-30 by researchinsights in Industrial, Technology // 0 Comments

San Francisco, Calif., USA, Dec 30, 2022 — /EPR Network/ —

India Online Grocery Industry Overview

The India online grocery market size is projected to reach USD 38.9 billion by 2028, according to a study conducted by Grand View Research, Inc. It is expected to expand at a CAGR of 37.1% from 2021 to 2028. The online grocery market in India has been thriving with consumers favoring the convenience of online shopping over neighborhood grocery retailers. Amid the COVID-19 pandemic, people have been careful to step out from the safety of their homes.

A rising number of individuals are shifting toward online grocery shopping for meeting their needs during the time of social distancing. The online grocery market in India, while still in its nascent stage, witnessed remarkable growth during the pandemic period and is set to pick up significantly as social distancing becomes the new normal and as traditional grocery retailing loses appeal across hitherto experience. Additionally, growing smartphone usage, coupled with the proliferation of the internet, is a key factor expected to boost market growth over the forecast period.

India Online Grocery Market Segmentation

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

Based on the Product Type Insights, the market is segmented into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, and Others.

The staples and cooking essentials segment dominated the market with a share of 33.9% in 2020. This significant share is attributed to the constant shopping of staples that include flours, food grains, and cooking essentials like refined oil that are basic requirements of many.
The breakfast and dairy segment is expected to expand at a growth rate of 37.6% over the forecast period. This is attributed to the growing demand for dairy products, such as yogurt, milk, and curd. These products are a daily necessity for people and have a short lifespan as compared to other products.

Based on the Payment Method Insights, the market is segmented into Online, and Offline (Cash on Delivery).

The online segment dominated the market with a share of 63.8% in 2020 and is expected to expand at the highest CAGR during the forecast period. The growth of this segment is attributed to the growing preference for online payments.
Cash still accounts for a substantial share in India’s online grocery payment market. This is mainly due to the enduring popularity of cash-on-delivery methods, which allow e-commerce merchants to reach rural and unbanked customers and decrease the issues of payment losses owing to non-payment.

Key Companies Profile & Market Share Insights

The market is fragmented and characterized by extreme competition amongst the players. Key players are focusing on growing their market presence by implementing various strategies, such as partnerships, mergers & acquisitions, and geographical expansion. These strategies help the market players expand their businesses geographically and enhance their offerings across the national and international markets.

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