India Online Grocery Market: Current Analysis and Forecast (2021-2027)

The online shopping for groceries is not a new phenomenon in India as it has been there for the past many years. Ordering online for groceries such as daily FMCG products, vegetables etc. have propelled the e-commerce market in India towards hasty growth. Moreover, , the e-grocery sector got a major boost during 2019-2020 due to the COVID-19 pandemic, when out of necessity, most Indian households wo were not buying online earlier, also started to shop online for groceries due to several government regulations and lockdown in county

As of 2020, there are around 130 Million e-grocery addressable household in India. Moreover, a rise in internet penetration coupled with the adoption of smart phone is one of the prominent reason, driving the online grocery market in India. As per the World Bank, the internet penetration in India has increased from 17% in 2015 to 34.4% in 2019. Also, In 2020, the penetration rate of smartphone in India reached 54% and was estimated to reach 96% in 2040, as reveled by Statista. Also, the surging digitalization by the small players is also acting as a growth catalyst to the industry. More than 90 percent of the market is unorganized, dominated by more than 13 million small mom-and-pop stores, As per a report by Kearney, More than 25 percent of the organized grocery market's growth over the next few years could come from online shopping.

A rise in the working couple and nuclear families in Country is leading to the greater demand for the e-services including online grocery. As per the world bank there were about 477.3 Mn people employed in the country in 2015, the number increased to 494.7 Mn in 2019. Also, more than 50% families in the country are nuclear, as per Indian Census Data. The hectic and bust lifestyle leads to the growing demand for the online grocery.

Based on the Category, the market is fragmented into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples& Cooking essentials and Others. The Staples and Cooking essential segment of the India Online Grocery Market grabbed the major market share and dominated the market. The segment captured around 39.8% market share and generated USD 1,057.7Mn in 2020 and is expected to grow at a CAGR of 52.8% during the forthcoming years.

Based on the Payment Method, the market is fragmented into Online, Cash on Delivery, E-Wallets and Others. The Cash on Delivery segment grabbed major market share and captured 69.7% market revenue in 2020. However, the online segment would emerge in the forecast period and would witness the highest CAGR during the forthcoming period as well and would reach USD 12,984.7 Mn by 2027

Based on the Purchase Type, the market is segregated into One-Time purchase and Subscription. The One-Time Purchase segment grabbed Lion's share and dominated the market. The segment captured 64.2% market share to reach a market valuation of USD 1,708 Mn in 2020. However, the subscription-based purchase type would witness the considerable CAGR of 54.1% during the forth coming years

Based on the platform type, the market is segmented into App-based and Web-based. Web based segment grabbed 53% market share and gathered USD 1,409.6 Mn in 2020. Moreover, this segment is expected to reach USD 27,324.9 Mn by 2027 with a growth of 49.5% CAGR during 2021-2027. Furthermore, the app-based segment is expected to witness the highest CAGR during the forecast period to reach the market valuation of USD 31,155.4 Mn by 2027

For a better understanding of the market adoption of the Online Grocery Market, the market is analyzed based on its regional presence in the country. The regions covered in the study are East, West, North and South. The South India constitutes a major market for the Online Grocery industry and generated revenue of USD 977.1 Million in 2020 owing to the increase in the demand for online delivery due to rising working couple, busy & hectic lifestyle

Some of the major players operating in the market are Amazon India Pvt. Ltd., Godrej Nature's Basket Ltd., Grofers India Pvt. Ltd., Paytm E-Commerce Pvt. Ltd. (Paytm Mall), Reliance Retail Ltd. (Reliance Fresh), Spencer's Retail, Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), UrDoorstep eRetail Pvt. Ltd., ZopNow Retail Pvt Ltd and MyGrahak Shopping Online Limited etc,.