India Quick Commerce Market Outlook to FY’27F
Driven by Increasing demand for Faster Delivery & Convenience and Shifting Customer behavior towards Unplanned Purchases
June 2022
77
About the Report
About the Report
The report titled “India Quick Commerce Market Outlook to FY’27F - Driven by Increasing demand for Faster Delivery & Convenience and Shifting Customer behavior towards Unplanned Purchases” provides a comprehensive analysis on the status of the Quick Commerce Market in India. The report includes various aspects including, the evolution of quick commerce Industry, comparison of the quick commerce platform with other online channels, need & opportunities for the quick commerce players in India describing the target addressable market, the growth drivers and the supply side challenges faced by the industry.
It includes detailed explanation of the value chain model which is being followed by major quick commerce players, developments, challenges, seasonality trends, current & upcoming technologies facilitating the industry. It gives detailed explanation of investment analysis, competitive scenario including cross comparison between major players, SWOT Analysis, and detailed company profiles of major players including their strength and weaknesses and concluding with analyst recommendations.
Market Overview
Quick Commerce provides the convenience of fastest possible doorstep delivery of groceries and other consumables. There has been observed a significant increase in the Top-up and Unplanned purchases, particularly in Metro and Tier I cities which is facilitating the growth of the quick commerce industry in India. The Quick Commerce Industry is currently positioned in the Early Growing Stage and is anticipated to showcase a CAGR close to 27% between FY’22 and FY’27F.
Increasing Willingness of the consumers to pay premium for quick deliveries, changing shopping habits towards more frequent unplanned & top-up purchases has led to the growth of the quick commerce market in India.
Market Segmentation
By Product Category:
Staples contributes the most in terms of revenue currently as it has relatively higher GMV than other categories and is expected to be the highest contributing category, followed by Fruits and Vegetables by the year FY’27.
Beauty & Personal care contribute the least because customer still prefer to order the products from established players only rather than opting to quick- commerce companies.
By Region:
Major Quick Commerce Companies expands to Metro & Tier I cities primarily as these cities have higher Internet Penetration, Working Population and Technology Awareness as compared to Tier II and below cities.
In Tier I cities, People are much more tech advanced and have become habitual of buying groceries and other consumables online.
Awareness will take time in Tier II cities and almost all the major players have started or are planning to expand to Tier II cities, hence, it is expected that in future, by FY’27, Tier II and below will have a significant market capture, whereas, metro & Tier I cities is still expected to lead and contribute highest share in the market by FY’27.
By Gender of the Consumer:
It is observed that Females currently contribute more in terms of number of orders to the Quick Commerce Industry in India. This can be supported by the fact that, in India, conventionally, females are more prone towards looking for groceries and other consumables to buy for the house.
By Business Model:
Dark store model is the most preferred type of delivery model for quick commerce. Majority of the companies follow the dark store delivery model.
Many of the popular and big players in this sector are opting or have opted for the dark store models, to maintain proper supply chain methodology and for adherence towards their 10-20 minutes delivery model, they simply cannot rely on third party platforms.
By Delivery Time:
Quick commerce market has all been about luxury of time, delight of delivering quickly at your respective address.
The industry is still in early growing stage and hence, companies are still inventing ways, how to make this quick delivery model a stable one. Companies are opening dark stores using several geographical mapping technologies and it is the consequence of these dark stores that they have been able to deliver around 60% of all the orders within 40 mins.
By Average Order Value:
Quick Commerce is more dependent on refilling purpose and unplanned purchases rather than bulk ordering. Due to the area limitation of Dark Stores, number of SKU's availability and baggage limits per, majority of the orders are below INR 600-700. A very small %age is contributing towards the order size greater than INR 1000.
Competitive Landscape
The industry is currently concentrated with presence of 7-8 players operating in the Quick Commerce industry in India. Fast Delivery, Price, Discounts & Offers, wide product assortment and availability & Ease of Payment are the major factors that influence the buying decision of the consumer. The major players include Swiggy Instamart, Blinkit and Zepto, together contributing more than 80% to the market. Companies with Large Product Assortment & Fastest Delivery are identified as clear leaders in the industry.
Future Outlook and Projection
The demand for the Quick Commerce is expected to expand with at a double digit of CAGR on the basis of GMV between FY’22P and FY’27F. Automation in the Dark Stores, Drone Technology, Voice Ordering, and Use of Electric Vehicles for Delivery is anticipated to drive the Quick Commerce Market in future. Demand Prediction and Customer Behaviour Analysis is crucial to ensure sufficient availability of the groceries and to ensure minimum degradation and stock-outs of these products.
Key Segments Covered
By Product Category
Packed food & Beverages
Staples
Beauty & Personal Care
Others
By Region
Metro & Tier I
Tier II and below
By Business Model
Dark Store Platform
Third Party Delivery Platform
By Customer’s Gender
Male
Female
By Delivery Time
0-20 Minute
20-40 Minute
40-60 Minute
60-75 Minute
By Average Order Value
< INR 300
INR 300 – INR 600
INR 600 – INR 1,000
INR 1000
Companies Covered
Swiggy Instamart
Blinkit
Zepto
Dunzo
BB Now
Ola Dash
BB Now
Flipkart Quick
Key Target Audience
Quick Commerce Companies
E-commerce Companies
E-Grocery Companies
Logistics Companies
Cold Chain Companies
Investors & Venture Capitalists
Time Period Captured in the Report: -
Historical Period: FY’22
Forecast Period: FY’23-FY’27F
Key Topics Covered in the Report
How is the Quick Commerce Market positioned in India?
India Quick Commerce Market Flowchart
Evolution of the Quick Commerce Industry
Target Addressable Audience for India Quick Commerce Market
Consumer Purchase Behavior
Channels available for shopping consumables
Comparison of E-Grocery and Quick Commerce Platform
Value Chain Model - Dark Store Delivery Platform
Supply Ecosystem and Challenges
Market Size and Segmentation
SWOT Analysis
Current Technologies Facilitating Quick Commerce Industry
Upcoming Technologies in Quick Commerce Industry
Investment and Funding in Quick Commerce Companies in India
Competitive Landscape – Cross Comparison of Major Players
Company Profiles
Case study & Analyst Recommendations
Research Methodology
Products
Products
Key Segments Covered
By Product Category
Fruits & Vegetables
Packed food & Beverages
Staples
Beauty & Personal Care
Others
By Region
Metro & Tier I
Tier II and below
By Business Model
Dark Store Platform
Third Party Delivery Platform
By Customer’s Gender
Male
Female
By Delivery Time
0-20 Minute
20-40 Minute
40-60 Minute
60-75 Minute
By Average Order Value
< INR 300
INR 300 – INR 600
INR 600 – INR 1,000
INR 1000
Key Target Audience
Quick Commerce Companies
E-commerce Companies
E-Grocery Companies
Logistics Companies
Cold Chain Companies
Investors & Venture Capitalists
Time Period Captured in the Report: -
Historical Period: FY’22
Forecast Period: FY’23-FY’27F
Companies
Companies Covered
Swiggy Instamart
Blinkit
Zepto
Dunzo
BB Now
Ola Dash
BB Now
Flipkart Quick
Table of Contents
Table of Contents
1. Executive Summary
1.1 How is Quick Delivery market positioned in India?
1.2 India Quick Commerce Market Flowchart, FY’22P
2. India Quick Commerce Market Overview
2.1 India – Country Demographics
2.2 What is Quick Commerce?
2.3 Evolution of the Quick Commerce Industry
3. Need and Opportunity
3.1 Target Addressable Audience for India Quick Commerce Market
3.2 Quick Commerce Landscape
3.3 Consumer Purchase Behaviour
3.4 Channels available for shopping consumables
3.5 Comparison of E-Grocery and Quick Commerce Platform
4. Value Chain Model
4.1 Value Chain Model - Dark Store Delivery Platform
5. Supply Scenario
5.1 Market Entry Timeline of Major Players
5.2 Ecosystem of Major Entities in India Quick Commerce Market
5.3 Overview and Genesis of India Quick Commerce Market
5.4 Recent growth trends observed in the India Quick Commerce Industry
5.5 Important Factors Considered by a Consumer while Shopping from a
Quick Commerce Platform
5.6 Challenges and possible solutions to overcome
6. Market Size and Segmentation
6.1 Quick Commerce Market Size, FY’22-FY’27F
6.2 Market Segmentation on the Basis of Product Category, FY’22-FY’27F
6.3 Market Segmentation on the Basis of Region, FY’22-FY’27F
6.4 Market Segmentation on the Basis of Customer’s Gender, FY’22-FY’27F
6.5 Market Segmentation on the Basis of Business Model, FY’22-FY’27F
6.6 Market Segmentation on the Basis of Delivery Time, FY’22-FY’27F
6.7 Market Segmentation on the Basis of Average Order Size, FY’22-FY’27F
7. Industry Analysis
7.1 SWOT Analysis
7.2 Current Technologies Facilitating the Quick Commerce Industry
7.3 Future Trends Facilitating the Quick Commerce Industry
7.4 Features of India Quick Commerce Applications
7.5 Government Regulations
8. Investment Analysis
8.1 Investment Analysis – Company Comparison
8.2 Investment Map for Major Quick Commerce Companies in India
9. Competition Landscape
9.1 Competition Scenario – India Quick Commerce Market (including Market Share Analysis)
9.2 Strength and Weaknesses of Major Players for India Quick Commerce
9.3 Cross Comparison of Major Players for India Quick Commerce
9.4 Company Profile – Blinkit
9.5 Company Profile – Swiggy Instamart
9.6 Company Profile – Zepto
9.7 Company Profile – Dunzo
9.8 Company Profile – Ola Dash
10.Analyst Recommendations
10.1 How can companies promote themselves?
10.2 Key Adoption Points for Quick Commerce Companies in India
10.3 Case Study of Blinkit
11.Appendix
Research Methodology
Disclaimer
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