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The Indian online grocery market reached a value of US$ 5.1 Billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 28.3 Billion by 2027, exhibiting a CAGR of 32.7% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic. These insights are included in the report as a major market contributor.
Online grocery stores refer to various e-commerce-based web and mobile applications that are used for purchasing food and other necessary household products over the internet. The customers can place the order online and schedule home deliveries directly from the local store or third-party e-retailing organizations. They offer various benefits to the costumers, such as convenience and ease of shopping and anytime access to a wide variety of products. The users can also place pre-paid orders and can schedule the time and intervals of the deliveries as per their requirements.
Note: Values and trends in the above chart consists of dummy data and are only shown here for representation purpose. Kindly contact us for the actual market size and trends.
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The India online grocery market is primarily driven by rapid urbanization, along with significant growth in the e-commerce industry. In line with this, there is increasing acceptance for online grocery platforms in India, owing to the rising consumer awareness regarding the associated convenience, along with increasing digital literacy and improved internet accessibility across the country. Furthermore, in light of the nationwide response to the coronavirus (COVID-19) pandemic, there has been a great shift in consumers’ shopping habits, which is also providing a boost to the market growth. Vendors are offering contactless deliveries of essential products and adopting digital payment methods to minimize the spread of the disease. Additionally, service providers are adopting various innovative business models, such as express or slotted delivery and subscription or on-demand delivery models, that are also creating a positive outlook for the market. Other factors, including rising expenditure consumer capacities and attractive discounts offered by these service portals, are contributing to the market growth further.
IMARC Group provides an analysis of the key trends in each sub-segment of the Indian online grocery market, along with forecasts at the country and regional level from 2022-2027. Our report has categorized the market based on product type, payment method and platform.
Breakup by Product Type:
Breakup by Payment Method:
Breakup by Platform:
Breakup by Region:
The competitive landscape of the industry has also been examined with some of the key players being
|Base Year of the Analysis||2021|
|Segment Coverage||Product Type, Payment Method, Platform, Region|
|Region Covered||North India, East India, West India, South India|
|Companies Covered||Aaram Shop Private Limited, Amazon Retail India Pvt. Ltd, Godrej Nature's Basket, Grofers India Private Limited, Innovative Retail Concepts Pvt Ltd (Bigbasket) and Paytm E-Commerce Pvt. Ltd.|
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We expect the Indian online grocery market to exhibit a CAGR of 32.7% during 2022-2027.
The growing consumer awareness towards the associated convenience from online grocery system,
along with increasing digital literacy level, is currently catalyzing the Indian online grocery market.
The sudden outbreak of the COVID-19 pandemic has led to the increasing consumer inclination towards
online grocery stores, to combat the spread of the coronavirus infection upon human interaction across
brick-and-mortar distribution channels.
Based on the product type, the Indian online grocery market can be segregated into food grains, bread,
bakery and dairy products, fruits and vegetables, personal care, dry and baking products, household
products, beverages, meat and meat products, and others. Among these, food grains currently account
for the largest market share.
Based on the payment method, the Indian online grocery market has been divided into online and cash
on delivery, where cash on delivery payment method currently exhibits a clear dominance in the
Based on the platform, the Indian online grocery market can be categorized into app-based and web-
based. Currently, app-based holds the majority of the total market share.
On a regional level, the market has been classified into North India, East India, West India, and South
India, where South India currently dominates the Indian online grocery market.
Some of the major players in the Indian online grocery market include Aaram Shop Private Limited,
Amazon Retail India Pvt. Ltd, Godrej Nature's Basket, Grofers India Private Limited, Innovative Retail
Concepts Pvt Ltd (Bigbasket), Paytm E-Commerce Pvt. Ltd., etc.
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