May, 2018     

Online Grocery Market Updates-May’18

Delhi-NCR and Bangalore are the key markets for online grocery

The online grocery industry is largely dominated by Big Basket and Grofers. While Big Basket leads in Bangalore and Hyderabad, Grofer has a stronghold in Delhi-NCR. Changing consumer landscape and consumer becoming more accustomed to online shopping have been the key drivers for growth of online grocery in these markets.

The online grocery market is largely dominated by FMCG & others category but Fresh is the anchor category for consumers

The online grocery market is largely dominated by ‘FMCG & others’ category. But the key reason for which consumers come to these platforms is ‘fresh’ category. The players are thus investing heavily in warehousing and delivery capabilities to ensure that good quality fresh products get delivered to the consumers on time.

The online grocery market is expected to grow at 71% CAGR to become USD 5 billion by 2020

Online grocery is expected to become USD 5 bn by 2020 driven by favourable demographics and adoption. The rising infrastructure investment done by the vertical players in expanding their warehouses and delivery infrastructure is helping them serve customers better. Increasing smartphone penetration and the comfort of shopping online is also playing a key role in increasing the adoption. The online grocery market is hence expected to see a tremendous growth in the years to come.

Online Grocery is expected to be one of the fastest growing category reaching ~4 Bn in 2020

Online grocery and FMCG is the next key category of focus for all the large e-tailers. Online grocery habituates the consumer with frequent purchase thus ensuring the consumers are more accustomed to shopping from the e-tailers. The e-tailers are hence focussing big time on this category. The large verticals on the other hand are growing at a rapid pace. Hence, we expect this category to reach $4 bn by 2020.

See similar stories