India’s online grocery market has emerged as the new battleground for BigBasket, Flipkart, Reliance JioMart, Swiggy and Amazon India.
With customers preferring to stay indoors, companies are battling to grab a larger slice of this online grocery business that is estimated to expand ninefold to $18.2 billion by 2024, according to a new report from RedSeer.
In the short-term, the size of the e-grocery market in the country is expected to expand from $1.9 billion in 2019 to $3 billion by the year-end and then grow at an annual pace of 57% for the next four years, the report said. Online sales contribute to a minuscule 0.3% of the overall grocery sales in India and are expected to increase to 2.3% by 2024, RedSeer said.
Almost every food delivery and e-commerce firm pivoted to selling groceries because of the restrictions on the delivery of non-essentials during lockdown. With customers left with no option but to look at digital channels for home essentials, GMV for the online grocery segment in the country jumped by 73%, between January and June.