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The India online grocery market had a value of USD 2.9 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 37.1% between 2021 and 2028.
Source – GrandViewSearch

The internet market has gained tremendous momentum over the past few months due to the changing lifestyle of consumers, growing urbanization, and the growing number of tech-savvy consumers who prefer to buy products online.

People are increasingly seeking customized and convenient online platforms for grocery shopping as disposable incomes rise and their lives become more hectic.

As a result of the COVID-19 outbreak, online delivery of grocery products has become increasingly popular.

Consumers are increasingly turning to online grocery shopping as a convenient and safe alternative because of social distancing standards.

It is expected that the market will grow significantly in the coming years.

Consumers are increasingly buying their groceries online from several online platforms, like Amazon, BigBasket, Grofers, and others, due to no-contact delivery and online payment options.

As a result of the safety concerns surrounding Coronavirus and the increased use of online platforms by consumers, consumers are becoming increasingly dependent on them.

Thus, the market has been able to grow through several avenues.

Every sector in India has been forced to adapt to the new normal and embrace methods that prove effective for hygiene and safety.

People must maintain social distancing in public and even at grocery stores, which takes a lot of time.

However, consumers realized online grocery shopping is not only convenient but also safe, thanks to contactless delivery.

Working from home allows working professionals to balance their life and work, and the convenience of ordering groceries online with just a few clicks on their handheld gadgets makes it convenient for them.

A decline in data tariffs and cheaper smartphones are also expected to support the market.

An increase in internet penetration and the boom in digital payments have also contributed to the market’s growth.

With India’s rising internet penetration and digital awareness, the online grocery market is booming.

Nowadays, consumers are more likely to shop omnichannel due to smartphones’ increasing accessibility and cheap data plans.

In India, the government is promoting the digital economy framework and digital literacy, which will further boost the online grocery market.

Consumers in Tier-I cities, such as Bangalore, Chennai, Mumbai, and Delhi, are expected to be the driving force behind the industry, as high-speed internet, mobile devices, and logistical simplicity make them more conducive to online shopping.

As the government unblocks things step by step, the supply chain and workforce concerns are improving.

As a result, online grocery shopping is proving to be the best choice for consumers for reasons like convenience, smart shopping, and hygiene concerns.

Market Shares & Key Companies

Market players are focusing on growing their market presence by implementing various strategies, such as partnerships, mergers & acquisitions, and geographical expansion.

The market is fragmented, with intense competition between players.

Through these strategies, market players can expand their businesses globally and improve their products and services on a national and international scale.

As an example, Amazon India Pvt. Ltd. launched its online grocery store Amazon Fresh in Pune, Ahmedabad, Kolkata, and Chennai in November 2020.

According to the company, the service has been launched in these cities as part of the expansion of Amazon’s specialized geographical network that provides ultra-fast grocery and daily essentials delivery services via Amazon Fresh Store.

The Indian online grocery market is dominated by the following companies: