The Indian e-grocery market, which is currently predominantly dominated by slotted delivery, is likely to expand in tier 2 and beyond regions, led by horizontal firms, with rapid commerce adoption expected to remain stable. The widespread use of fast commerce in cities between 2019 and 2022 can be credited with the enormous rise in the Indian e-grocery business.
The expansion of eGrocery is expected to continue in tier 2+ markets, driven by dominant players. While e-grocery adoption in the Indian market was steadily rising, it was booming in Indonesia and the Middle East and North Africa (MENA).
Value can still be unlocked in the e-grocery market despite consumer preferences that are influenced by a variety of factors, such as convenience and habit. A creative last-mile model, optimised storage and supply chain, targeted range construction and merchandising, optimised pricing positioning, and test-and-learn methodology are just a few of the important aspects that players in the eGrocery industry need to focus on in order to generate value.
India’s rapid commerce sector is expected to increase 15 times by 2025, reaching a market size of over $5.5 billion, as quick grocery delivery under the 10-15-minute time frame becomes the new growth arena globally.
India has a $45 billion total addressable market for rapid commerce, with metropolitan areas driving this industry on the backs of middle-to-high-income households.