India’s grocery market has largely remained unorganised over the years but it is slowly changing as the market is shifting towards organized with these organized channels seeing more adoption, penetration and clocking high growth as it is rendering a better experience to the customers.

Further, Covid has also been a catalyst for the accelerated growth of organised grocery channels and eGrocery being one of the biggest gainers of Covid. Here we have captured, how this market is changing.

1. India is among the fastest growing grocery markets in the world and is set to become $85B by 2025

India which is one of the fastest growing grocery markets globally, is growing at a CAGR 8% and is expected to become a $850 billion market size by 2025.

2. But, it is still largely unorganized with rapid shifts towards eGrocery

Although the India market has largely remained unorganised, the market is now shifting towards organised as eGrocery is also significantly growing with increased adoption and penetration in smaller towns and cities.

3. Further, organised channels are growing faster

It has been seen that at this juncture, organised channels are growing faster with egrocery growing the fastest across all cities. As the research shows, the online segment is expected to grow 7-8x and MT to grow 3x as fast as unorganised.

4. Also, as eGrocery players stepped up to meet consumer demands, they saw higher NPS during Covid

Also, Covid has been a test where the egrocery players stepped up to meet the demands of the consumers. This led to a higher NPS for the players. Factors like quality of products, hygiene and safety, availability of products also played a key role for these players.

5. Apart from Covid, these are the other driving factors for eGrocery market

While undoubtedly, Covid has been a strong catalyst to drive egrocery market, other factors like demand for packaged items, brand tie-ups, changing consumer mindset and expansion in smaller towns and cities played a key role in driving growth of the segment.

6. Thus, the eGrocery market is set to be sized $21-25 billion by 2025

With the favourable sentiments and quality of service, as more households adopt egrocery and the penetration increases, the egrocery market will likely become a $21-25 billion market by 2025. This shows the bullish sentiments towards the segment and how it is set to grow in the coming years.


  • Rohan Agarwal has been a part of the Redseer Strategy Consultants journey for over six years. He is an expert in digital strategy for traditional corporates and start-ups.