Indian Online Grocery Market

Indian Online Grocery Market Outlook 2025-2033:

The Indian online grocery market size reached USD 11.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 96.3 Billion by 2033, exhibiting a growth rate (CAGR) of 25.38% during 2025-2033. The rapid expansion of internet penetration and smartphones usage, increasing urbanization and busy lifestyles of consumers, outbreak of COVID-19 pandemic, wide availability of products on e-commerce platforms, and competitive pricing are some of the major factors propelling the market.

Online grocery refers to the process of purchasing food and other household items through digital platforms, typically via the internet. It allows individuals to browse a virtual supermarket and select items from a wide range of products available. Online grocery shopping offers convenience to consumers, thus eliminating the need to physically visit a store. They can also choose their desired products, make payments online, and have the groceries delivered to their doorstep. This mode of shopping has gained popularity due to its time-saving benefits, wider product selection, and the ability to compare prices. Online grocery platforms often provide features like personalized recommendations and convenient delivery options to enhance the overall shopping experience.

The rapid expansion of internet penetration and smartphone usage in India has opened up a large consumer base with access to online shopping platforms. Additionally, the increasing urbanization and busy lifestyles of consumers have led to a growing demand for convenient shopping options. Online grocery platforms provide the convenience of browsing and purchasing products from the comfort of one's home or office, saving time and effort. Furthermore, the COVID-19 pandemic has acted as a catalyst, accelerating the adoption of online grocery shopping due to social distancing measures and lockdowns. This has prompted consumers to switch to online platforms for their grocery needs. Another crucial factor is the availability of a wide variety of products, including fresh produce, pantry staples, and specialty items, on online grocery platforms. This diverse product range caters to the diverse needs and preferences of Indian consumers. Moreover, competitive pricing, discounts, and offers provided by online grocery platforms have attracted price-sensitive consumers, making online shopping a cost-effective option compared to traditional brick-and-mortar stores.

Indian Online Grocery Market Trends/Drivers:

Rapid expansion of Internet Penetration and Smartphone Usage

more people gain access to the internet and own smartphones, they have the means to explore and utilize online platforms for their grocery needs. With just a few clicks on their smartphones, consumers can browse through a wide range of products, compare prices, and conveniently place orders. This increased connectivity has bridged the gap between consumers and online grocery platforms, making it easier for them to access and utilize these services. The convenience and accessibility offered by smartphones and the internet have revolutionized the way Indians shop for groceries, fueling the growth of the online grocery market.

The onset of COVID-19 Pandemic

With social distancing measures and lockdowns, consumers have rapidly shifted toward online platforms as a safe and convenient way to meet their grocery needs. Other than this, the rising concerns about crowded physical stores and the need to minimize physical contact prompted consumers to explore online alternatives. This surge in demand forced online grocery platforms to expand their services, improve delivery logistics, and enhance their product offerings. The pandemic has also increased awareness and trust in online grocery shopping and established it as a preferred choice for many Indian consumers even after the pandemic subsides.

The increasing urbanization and busy lifestyles of consumers

As more people migrate to urban areas and adopt fast-paced lifestyles, the demand for convenient shopping options has grown. Online grocery platforms offer the convenience of shopping anytime, anywhere, without the need to visit physical stores. This aligns well with the busy schedules and time constraints of urban consumers. They can easily browse and order groceries from a wide range of products, saving time and effort. The online grocery market caters to the needs of urban consumers by providing a hassle-free shopping experience that complements their fast-paced lifestyles.

Indian Online Grocery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Indian online grocery market report, along with forecasts at the regional levels from 2025-2033. Our report has categorized the market based on product type, payment method, and platform insights.

Breakup by Product Type:

• Food Grains
• Bread, Bakery and Dairy Products
• Fruits and Vegetables
• Personal Care
• Dry and Baking Products
• Household Products
• Beverages
• Meat and Meat Products
• Others

Food grains dominate the market

The report has provided a detailed breakup and analysis of the Indian online grocery market based on the product type. This includes 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. According to the report, food grains represented the largest segment.

Food grains play a crucial role in driving the Indian online grocery market as grains such as rice, wheat, and pulses, are essential in Indian households. Online grocery platforms offer a wide variety of food grains, providing consumers with a convenient way to purchase these essential products. By offering a diverse range of grains, including different varieties and brands, online grocery platforms cater to the diverse preferences and dietary requirements of consumers. Moreover, the availability of food grains on online platforms ensures a steady supply, especially during times of scarcity or disruptions in traditional brick-and-mortar stores. This reliability and accessibility of food grains contribute to the growth and popularity of the Indian online grocery market.

Breakup by Payment Method:

• Online
• Cash on Delivery

Cash on delivery hold the largest share in the Indian online grocery market

A detailed breakup and analysis of the Indian online grocery market based on the payment method has also been provided in the report. This includes online and cash on delivery. According to the report, cash on delivery accounted for the largest market share.

In a country where digital payment adoption is still evolving, cash on delivery (COD) provides a convenient payment option for consumers. Many customers, particularly those who are skeptical about online transactions or lack access to digital payment methods, prefer the security and trust offered by COD. By offering the option to pay in cash upon delivery, online grocery platforms have been able to tap into a larger customer base, including those who are more comfortable with traditional payment methods. The availability of COD has boosted consumer confidence and facilitated the growth of the Indian online grocery market, making it accessible to a wider audience.

Breakup by Platform:

• App-based
• Web-based

App-based online grocery shopping accounts for the majority of the overall market share

A detailed breakup and analysis of the Indian online grocery market based on the platform has also been provided in the report. This includes app-based and web-based. According to the report, app-based accounted for the largest market share.

The app-based approach is driving the Indian online grocery market by providing a seamless and user-friendly shopping experience. With the proliferation of smartphones, dedicated mobile applications have become a convenient way for consumers to access online grocery platforms. These apps offer intuitive interfaces, personalized recommendations, and features like saved shopping lists, making it easier for users to navigate and make purchases. App-based platforms also leverage push notifications and alerts to keep customers informed about new offers, discounts, and delivery updates. The convenience and accessibility of app-based shopping have contributed to the growth of the Indian online grocery market, attracting tech-savvy consumers and enhancing overall customer satisfaction.

Breakup by Region:

• North India
• East India
• West India
• South India

South India exhibits a clear dominance, accounting for the largest Indian online grocery market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, East India, West India, and South India. According to the report, South India accounted for the largest market share.

South India has a high population density, urbanization rate, and internet penetration, making it a fertile ground for online grocery platforms to thrive. South Indian consumers, known for their inclination toward technology adoption, have embraced the convenience of online shopping for groceries. The region's diverse culinary preferences and demand for specific regional products have also fueled the growth of online grocery platforms that cater to these unique needs. South India's contribution to the Indian online grocery market stems from its large consumer base, technological readiness, and market dynamics, making it a key driver of the overall industry growth.

Competitive Landscape:

The key players in the Indian online grocery market have implemented various efforts to drive its growth. They have focused on expanding their product offerings, partnering with local vendors to ensure a wide range of choices. Furthermore, the leading players have invested in building robust logistics networks and efficient delivery systems to provide timely and reliable services. To enhance customer experience, they have developed user-friendly mobile applications and websites with personalized recommendations. These players have also introduced attractive offers, discounts, and loyalty programs to incentivize customers. Moreover, they have increased their marketing and advertising efforts to create awareness and promote the benefits of online grocery shopping, further driving the growth of the Indian online grocery market.

The report has provided a comprehensive analysis of the competitive landscape in the Indian online grocery market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Aaram Shop Private Limited
• Amazon Retail India Pvt. Ltd,
• Godrej Nature’s Basket
• Blink Commerce Private Limited
• Innovative Retail Concepts Pvt. Ltd. (Bigbasket)
• Paytm E-Commerce Pvt, Ltd.

Recent Developments:

• Indian Council of Agricultural Research signed an MOU with Amazon Kisan to empower farmers guiding them through scientific cultivation of numerous crops for optimum yield and income.
• Tata-owned Innovative Retail Concepts, which operates FMCG business BigBasket, has received a Rs 1,000 funding injection in 2022. BigBasket has also launched a number of new delivery options, including its most recent launch BBNow, which offers deliveries in select metros in 10 to 20 minutes through the use of dark stores in strategic locations.
• Blink Commerce Private Companies are focusing on moving toward a sustainable future. Apart from replacing the delivery packaging, the company has also built up several sustainability programs for reduction in the packaging of private label products. With these programs, it aims to reduce the amount of plastic used in packaging products such as staples, atta, sugar, etc.

Indian Online Grocery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Indian online grocery market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Indian online grocery market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Indian online grocery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.