India’s digital user base is evolving rapidly and driving the online retail market. India has ~600 Mn internet users out of which ~20% are active online shoppers. E-tailing market in India is expected to grow to $100 Bn by 2023 from $24 Bn in 2018.
Online grocery is a $1.2 Bn market in 2018 and is expected to reach $5 Bn by 2020 driven by favourable demographics, adoption and policy factors.
India’s Food & Grocery (F&G) retail sector has, over the recent years, witnessed substantial momentum across evolution of customer centric business models, supply chain remodelling and efficiencies driving value creation.
Though organized F&G retail has been around for over three decades now, it was marked by constrained growth owing to diluted focus on format, geography, assortment mix, customer segments by business conglomerates eager to leverage the potential.
Modern Retail penetration currently is 10% ($82 Bn) of India’s total retail sector of $805 Bn (CY2018). This organized share is expected to grow at 20% over the next few years to 11.8% ($118 Bn) by CY2020 and 14.7% ($204 Bn) by CY2023. Online retail contributes 3% (CY2018) share and reflecting, expectantly, robust CAGR of 35% will increase to 4.6% and 8.6% penetration in CY2020 and CY2023, respectively.
Of India’s retail basket, F&G category comprising fresh fruits & vegetables, staples, packaged food, beverages, personal care & home care and utilities is a significant 65% ($525 Bn) of the wallet-spend whilst the organized share is marginal, at lowest penetration factor of 3.6% contribution.
The F&G Modern Retail sector, however, will grow at a robust 25% CAGR to an increased 6.7% penetration by 2023. Online penetration at 1.2% by 2023 would reflect a 55% growth rate over next five years.
Attributable to the above, the sector has attracted strategic investments from domestic as well as international retailers, Online and B&M alike. Online grocery sector alone witnessed more than a billion dollars investment over the last two years. Augmenting value creation, incumbent retailers too will continue to build multi-channel models.
Funnelled towards building hybrid constructs, investments by retailers will increasingly address rapidly increasing consumer digitation, channel convergence, hyperlocal delivery, regional assortment.
Against this changing landscape, it would be imperative for consumer brands to leverage multi-channel platforms, garner deep understanding across both, online as well as offline, for achieving scale and sustained relevance.
Online grocery is a $1.2 Bn market in 2018 and is expected to reach $5 Bn by 2020 driven by favourable demographics, adoption and policy factors.
India’s Food & Grocery (F&G) retail sector has, over the recent years, witnessed substantial momentum across evolution of customer centric business models, supply chain remodelling and efficiencies driving value creation.
Though organized F&G retail has been around for over three decades now, it was marked by constrained growth owing to diluted focus on format, geography, assortment mix, customer segments by business conglomerates eager to leverage the potential.
Modern Retail penetration currently is 10% ($82 Bn) of India’s total retail sector of $805 Bn (CY2018). This organized share is expected to grow at 20% over the next few years to 11.8% ($118 Bn) by CY2020 and 14.7% ($204 Bn) by CY2023. Online retail contributes 3% (CY2018) share and reflecting, expectantly, robust CAGR of 35% will increase to 4.6% and 8.6% penetration in CY2020 and CY2023, respectively.
Of India’s retail basket, F&G category comprising fresh fruits & vegetables, staples, packaged food, beverages, personal care & home care and utilities is a significant 65% ($525 Bn) of the wallet-spend whilst the organized share is marginal, at lowest penetration factor of 3.6% contribution.
The F&G Modern Retail sector, however, will grow at a robust 25% CAGR to an increased 6.7% penetration by 2023. Online penetration at 1.2% by 2023 would reflect a 55% growth rate over next five years.
Attributable to the above, the sector has attracted strategic investments from domestic as well as international retailers, Online and B&M alike. Online grocery sector alone witnessed more than a billion dollars investment over the last two years. Augmenting value creation, incumbent retailers too will continue to build multi-channel models.
Funnelled towards building hybrid constructs, investments by retailers will increasingly address rapidly increasing consumer digitation, channel convergence, hyperlocal delivery, regional assortment.
Against this changing landscape, it would be imperative for consumer brands to leverage multi-channel platforms, garner deep understanding across both, online as well as offline, for achieving scale and sustained relevance.
Table of Contents
1. Understanding India's Organized Penetration for Groceries and GM categories
2. Macro Mapping Analysis of Online Groceries & GM Shopping
3. Category Deep Dive
4. Shopping Basket Analysis
5. Consumer Research Analysis
Methodology
1. Primary Research Consumers, stakeholders and industry experts are interviewed to help us validate key trends and market estimations.
While the exact figures may vary for different reports, on average, the publisher conducts:
- ~1,000+ consumer surveys
- ~30+ IDIs (in-depth interviews) with stakeholders (consumers, suppliers, distributors and delivery executives, among others)
- ~25+ detailed discussions with industry experts Depending on the report in question, consumers and stakeholders are distributed across:
- City tiers (Metros, Tier 1, Tier 2, Tier 3 & Tier 4 cities)
- Income levels
- Genders
- Age groups
- Professions
- Internet usage pattern
- Geographies
2. Secondary Research Secondary includes analysis of databases available in public domain. Information sought is cross-referenced and aligned for soundness.
Note: In order to maintain confidentiality, results and analysis of the surveys and expert interviews are presented at level of overall scenario analysis and representation only.
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