India Online Grocery Market Share, Revenue, Trends, Challenges, Growth Opportunities, CAGR Status and Forecast Analysis Till 2032

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India Online Grocery Market Share, Revenue, Trends, Challenges, Growth Opportunities, CAGR Status and Forecast Analysis Till 2032: SPER Market Research


 Category : Consumer & Retail

 Published: Mar-2023
 Author: SPER Analyst


India Online Grocery Market is projected to be worth USD 130.72 billion by 2032 and is anticipated to surge at a CAGR of 37.35%.

An online grocery market is a platform which could be a website or mobile application that allows you to buy groceries and household items from the convenience of your own home. Unlike traditional supermarkets, you can browse the website or app and select the products you want to purchase, and place your order without physically visiting a store. In either case, you can pick up your groceries locally or have them delivered to your door when you place your order online.

Besides this, when compared to physical stores, online grocery markets typically offer a larger selection of items. They frequently have products from all over the world that may not be available in your area. In addition, online grocery stores frequently offer competitive prices and promotions that can assist you in saving money on your grocery purchases. Therefore, we can say online grocery stores are a convenient, efficient, and cost-effective way to buy groceries and household necessities.

Indian Online Grocery Market Driving Factors and Challenges

India's online grocery market has experienced significant growth in recent years and is expected to continue to grow with a CAGR of 37.35% and reach USD 130.72 billion by 2032.  As customers can now order groceries from the comfort of their own homes, saving time and effort. Smartphones and the internet, as well as busy lifestyles, have increased the popularity of online grocery services. Furthermore, online stores provide promotions and discounts that are not available in physical stores resulting in attracting more customers. Finally, the COVID-19 pandemic has also played a crucial role in accelerating the growth of India's online grocery market as people avoid physical stores in order to reduce their risk of virus exposure.

The online grocery market in India is facing several challenges such as logistics, quality control, payment systems, competition, and consumer behavior. Timely order fulfillment requires managing a complex network of suppliers, warehouses, and delivery agents resulting in further issues. Furthermore, external factors such as climate and insects make it difficult to ensure fresh, high-quality produce arrives in good condition. And at last, it is known that Indian consumers prefer physical stores, posing a hurdle for online retailers. Despite these challenges, the Indian online grocery market has significant growth potential, and retailers must address these issues to succeed.

Impact of COVID-19 on India Online Grocery Market

The COVID-19 pandemic had a significant impact on India's online grocery market, as people were seeking a safer and more convenient ways to buy groceries and online grocery acted as a panacea to this issue. Furthermore, online grocery retailers increased their operations, delivery networks, online platforms, and inventory levels in response to pandemic. However, the pandemic presented numerous challenges as retailers were forced to implement additional security measures to protect employees and customers which eventually increasing the cost of production. Supply chains and logistics networks were also disrupted, making product delivery more difficult.


India Online Grocery Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Amazon India Pvt. Ltd., Grofers India Pvt. Ltd., Supermarket Grocery Supplies Pvt. Ltd. (BigBasket), Reliance Retail Ltd. (Reliance Fresh), Paytm E-Commerce Pvt. Ltd. (Paytm Mall), and Godrej Nature's Basket Ltd.

India Online Grocery Market Segmentation:

By Product Type: Based on the Product Type, India Online Grocery Market is segmented as; Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, Others.

By Payment Method: Based on the Payment Method, India Online Grocery Market is segmented as; Online, Offline.

By Region: This report also provides the data for key regional segments of South India, North India, West India, East India.


This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

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