India Online Grocery Market: Analyzing Growth Drivers and Future Potential

India Online Grocery Industry Overview

The India Online Grocery Market, estimated at $8.82 billion in 2024, is forecast to expand at a compound annual growth rate (CAGR) of 44.9% from 2025 to 2030. Several factors are contributing to this growth, including the increasing preference for online grocery shopping, the growing availability and accessibility of high-speed internet, the government's increasing emphasis on developing new infrastructure and improving existing capacities, and ongoing enhancements in service offerings by key players in this market.

In recent years, online grocery shopping platforms have brought about significant disruption in the Indian retail sector. The rise of technology-driven mobile applications operated by major retail organizations with robust product and service offerings in large urban centers such as Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, and others has further bolstered the growth prospects for this market.

Detailed Segmentation:

• Payment Mode Insights

The offline (COD) payment modes segment is expected to experience a noteworthy CAGR of 42.0% from 2025 to 2030. The persistent popularity of the cash-on-delivery payment mode method in the Indian market, the security and confidentiality ensured by offline payment modes, online payment mode failures and the increasing occurrence of processing problems in online transactions, consumer behavior patterns, and convenience are some of the growth driving factors for this segment.

• Product Insights

The breakfast and dairy segment is expected to experience a significant CAGR during the forecast period. Dairy industry brands offer a wide range of products, including milk of different types, curd, yogurt, and cheese in multiple packaging sizes, and offerings such as batter, bread, eggs, semolina, flattened rice, and other products, adding to the growth opportunities. Fast-track deliveries and the availability of multiple alternatives in one online store are expected to generate an upsurge in demand for this segment.

• Regional Insights

East India is expected to experience the fastest CAGR from 2025 to 2030 owing to the increased ubiquity of smartphone technology and high-speed internet, the significant rise in disposable income levels, changes in lifestyles, government support for the development and enhancement of the online shopping industry supply chain, the presence of key online grocery platforms, the inclusion of automation technologies by major market participants, and more.

Gather more insights about the market drivers, restraints, and growth of the India Online Grocery Market

Key Companies & Market Share Insights

Some of the key companies operating in the India online grocery market are BigBasket, DMart Ready, Flipkart Supermart, Blinkit (Blink Commerce Private Limited), Zepto (KiranaKart Technologies Private Limited), and others. To address unprecedented growth in demand and competition, key players in market are adopting strategies such as portfolio expansion, collaborations, service enhancements, faster delivery, adoption of modern technologies and more.

• Blinkit (Blink Commerce Private Limited), one of the prominent companies in the industry, offers quick delivery service and online grocery shopping platform in multiple Indian cities such as Delhi, Kolkata, Lucknow, Pune, Hyderabad, Chennai, Chandigarh, Noida, Ahmedabad, Jaipur, Mumbai, Bengaluru and others. It offer products in categories such as vegetables & fruits, cold drink & juices, bakery & biscuits, beauty & cosmetics, personal care, ice cream & frozen desserts, cleaning essentials and more.
• Zepto by KiranaKart Technologies Private Limited, online grocery platform with rapid growth in monthly active customers, provides multiple from various categories including fruits & vegetables, dairy, bread, & eggs, atta, rice, oils & dals, meat, fish & eggs, masala & dry-fruits, packaged food, tea, coffee & more, frozen food, sweet cravings, munchies, hair care, baby care, skincare, household essentials, and others.

Key India Online Grocery Companies:

• Amazon India Pvt. Ltd.
• BigBasket
• DMart Ready
• Flipkart Supermart
• Godrej Nature's Basket Ltd.
• Blink Commerce Private Limited (Blinkit)
• Nature's Basket
• Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
• Reliance Retail Ltd. (Reliance Fresh)
• Spencer's Retail
• Star Quik (Fiora Online Limited)
• Swiggy (Instamart)
• UrDoorstep eRetail Pvt. Ltd.
• Zepto (KiranaKart Technologies Private Limited)
• Milkbasket

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Recent Developments

• In October 2024, BigBasket (Supermarket Grocery Supplies Pvt Ltd), one of the key players in the market, joined forces with Tanishq. The platform offered, fast delivery of gold and silver coins on occasion of Diwali festival.
• In October 2024, Swiggy Instamart, a major market participant in online grocery shopping and delivery industry, added an extra feature in pilot phase to its platform for enhanced customer experience. The feature allows user to add their entire grocery list via three different input methods. This includes hassle free experience with alternatives including write it, say it, and scan it.