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Indian Online Grocery Market to Grow at 32.7% During 2022-2027, Bolstered by Rising Penetration of High-Speed Internet Connectivity

Published on Jul 01, 2020

As per the latest report by IMARC Group, titled “Indian Online Grocery Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” the Indian online grocery market is expected to exhibit a CAGR of 32.7% during 2022-2027. Online grocery stores refer to e-commerce websites and mobile applications that help consumers order fresh produce, packaged food and dairy products, and various other necessary household items. These online portals use the internet to place orders while allowing the scheduled delivery of the required goods directly from local stores and third-party e-retailing organizations. In India, online grocery stores have gained immense popularity as these stores offer easy return, refund and exchange of items; enhanced convenience; multiple options to choose from; and flexibility in the payment modes.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Indian Online Grocery Market Trends:

The growing penetration of high-speed internet connectivity across both urban and rural areas and the rising adoption of smartphones represent the primary factors driving the market growth. The increasing digital literacy among a large portion of the consumer base has also enabled them to order groceries via online platforms. Besides this, the expanding e-commerce industry and rising awareness among consumers about the associated benefits and advantages of online grocery shopping have increased the acceptance of online grocery portals in the country. Moreover, the outbreak of coronavirus disease (COVID-19) has encouraged consumers to shop groceries and essential household items online with contactless deliveries and digital payment methods to minimize social contact and the spread of the virus. Furthermore, various vendors are streamlining their functions by offering flexible services and hassle-free refund policies. They are also introducing subscription-based or on-demand delivery models for their users, which is providing a positive outlook to the market.

Market Summary:

  • Based on the product type, the market has been classified 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. Amongst these, food grains are the most popular product type.
  • On the basis of the payment method, the market has been bifurcated into online and cash on delivery. At present, cash on delivery is the most preferred payment option.
  • Based on the platform, the market has been bifurcated into app-based and web-based segments. App-based platform dominates the market, accounting for the majority of the overall market share.
  • Region-wise, South India holds the leading position in the market. Other major regions are North India, East India and West India.
  • The competitive landscape of the market has been examined, with some key players being 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.


About Us:

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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