1. Online grocery likely to grow at ~57% to reach USD 18Bn+ by 2024
Online grocery market size forecast, USD
Growth will be driven by 4 factors:
- As people experienced the convenience of ordering grocery online, many are likely to stick. Rapid adoption adoption by new households will boost growth.
- Participation of large conglomerates and renewed interest from large eCommerce horizontals will help cater to a larger set of customers across city tiers.
- Increased availability of localised products online.
- Overall increase in comfort levels of using internet in general, and mobile applications specifically
2. Online grocery has been on a surge during COVID with ~1.7x GMV in June vs Jan
E-Grocery: Monthly GMV – Growth Recovery Curve (Indexed to 100), Jan 2020 = 100
Note(s): 1. Others include home utility products
Key themes that emerged during Covid are:
- E-tailing horizontals have been able to reach ~2x+ GMV in May-June compared to Jan – led by increased penetration in Tier 2+ cities.
- 1.5-1.6x increase in online grocery households in May vs Jan, most of which is organic adoption especially April onwards.
- Packaged F&B (led by RTC/RTE) continues to thrive, driving higher AOV (1.2x – May vs Jan) on eGrocery platforms.
3. Demand for comfort foods like noodles and cookies, immunity boosters like lemon and hygiene products like sanitizers has picked up like never before, while essentials remained strong
Key Themes around Top-Seller in Big Basket – Q2’20, by units sold
4. Non-fresh categories in BigBasket witnessed 40%+ Q-o-Q growth due to demand surge in the lockdown
Revenue growth in Big Basket by category – For non-fresh categories, Q2CY19 – Q2CY20
Jump in non-fresh categories happened as people stocked-up on comfort foods for the entire family, in the face of lockdown. Below are the top sellers within each of the categories:
- Snacks & Branded Foods: Biscuits and cookies were the highest selling and fastest growing sub-category.
- Beverages: Tea was the highest selling sub-category, however, fruit juices & drinks grew the fastest.
- Personal Care: Bath, face and hand wash was the highest selling and fastest growing sub-category.
- Home Utilities: Detergents and dish washes was the highest selling sub-category but grew the slowest.
