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Indian Online Grocery Market to Exhibit Strong Growth During 2020-2025, Catalyzed by Increasing Preference for Contact less Delivery

According to the latest report by IMARC Group, titled "Indian Online Grocery Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025," the online grocery market size in India witnessed strong growth during 2014-2019. Online grocery stores refer to e-commerce websites and mobile applications that aid individuals in ordering packaged food products, fresh produce and necessary household items. These online portals connect various brick-and-mortar local stores, supermarkets and third-party e-retailing organizations to assist in delivering the online order to the user in an efficient manner. These stores offer several benefits as they provide enhanced convenience and a vast array of options. They also offer flexibility of payment modes and scheduled delivery slots to the consumers. Additionally, users can opt for easy return, refund and exchange of items as per their requirements. Due to these associated advantages and benefits, online grocery services in India are gaining widespread prominence. Some of the most common items purchased through online grocery stores include fruits, vegetables, cereals, meat, dairy and bakery products.

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 market has been driven by the increasing penetration of high-speed internet connectivity and the escalating uptake of smartphones across India. This, along with rapid urbanization and growing digital literacy among the large customer base, has contributed to the rising consumer awareness regarding the benefits offered by these stores, which, in turn, is resulting in an increased acceptance for online grocery portals in the country. Improvements in cold chain facilities and the rapid expansion of the e-commerce sector are acting as other major growth-inducing factors. The market is further driven by the ever-evolving business models adopted by numerous vendors to streamline their functions while providing the consumers with service flexibility and hassle-free experience. Multiple companies have introduced the option of slotted and express deliveries on their portals, which is providing enhanced convenience to users, especially the rapidly increasing working professionals of the country. They are also providing the users with subscription-based or on-demand delivery models, which is expected to provide a positive outlook for the market. Furthermore, in the wake of the coronavirus disease (COVID-19) pandemic, the purchasing patterns of the masses have changed drastically. They are now preferring to shop groceries and essential household items online with contactless deliveries and digital payment methods in an effort to minimize social contact and contain the spread of the virus. Consequently, the rapid upsurge of COVID-19 cases has significantly bolstered the demand for online grocery delivery services. In addition to this, numerous food delivery platforms, such as Swiggy and Zomato, are now venturing into the market. On account of the aforementioned factors, the market is projected to continue its growth trajectory during 2020-2025.

Market Summary:

  • On the basis of 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.
  • Based on the payment method, the market has been bifurcated into online and cash on delivery.
  • On the basis of the platform, the market has been divided into app- and web-based.
  • On the geographical front, the market has been segregated into North India, East India, West India, and South India.
  • The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include Aaram Shop Private Limited, Amazon Seller Services Private Limited, Natures Basket Limited, Grofers India Pvt. Ltd., Innovative Retail Concepts Private Limited (BigBasket), and Paytm E-Commerce Private Limited.


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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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