Ordering groceries online has become prevalent in the past few years, owing to change in lifestyle, rapid urbanization, and increased internet penetration in rural parts of India.

The online grocery market grew significantly in 2020 and 2021, when the COVID-19-induced lockdowns and social distancing norms compelled most Indian households to opt for online grocery shopping. Some of the key market players are Spencer’s Retail Limited, Grofers India Private Limited, Supermarket Grocery Supplies Private Limited (BigBasket), and Amazon India Limited.

Market insights:
The online grocery market is expected to reach INR 1310.93 Bn by 2026, expanding at a CAGR of ~28.99% during the forecast period (2021 – 2026). In 2020, online grocery sales registered a growth rate of about 60%. One of the key reasons behind this growth is the COVID-19 pandemic.

It compelled consumers, especially those in urban areas, to use online platforms for daily grocery shopping in order to follow lockdown-related restrictions and maintain social-distancing.

Initiatives such as ‘no contact delivery’ and the ability to make payments online made it convenient for consumers to buy groceries from online platforms during the pandemic. The online grocery market is dynamic and both, domestic and foreign players compete to expand their market share and presence.

Segment insights:
The market is segmented based on the payment methods and type of products delivered through the medium and regions. The online payment segment has grown immensely during the past two years and is expected to grow over the forecast period (2021 – 2026).

This is due to the preference for online payments, high smartphone usage, and deep internet penetration. On the basis of regional segmentation, in 2020, south India held the largest share (34.6%) in terms of revenue and is expected to register the highest CAGR during the forecast period.

COVID-19 impact analysis:
In 2020, the market witnessed remarkable changes owing to COVID-19, resulting in sectorial consolidation and significant sales growth. The social distancing norms made consumers turn their focus toward online grocery shopping, considered convenient and safe amid the pandemic.

Also, several exporters and processors plan to increase their presence in the online business during the forecast period as this marketing channel has become more streamlined than offline retail. Multiple surveys were conducted between last year and this year. It was observed that people preferred online shopping because of easy access to products, flexibility, and timeliness. These are expected to be the driving factors even after the pandemic.

Online Grocery Market Size & Share to Record New Values for the Forecast Period 2019-2030

The post Online Grocery Market in India 2021 first appeared on CRI Report.

Market Overview
We are residing in connected commerce era where consumers aren’t entirely into the online or in-store shopping category; rather they’re taking blended approach i.e. choosing in step with their needs. Adoption of intersecting points of physical and virtual world and leveraging technology to satisfy customers is success mantra in retailers and makers. Online grocery shopping trend is driven in numerous parts on the idea of maturation of the digital native: Millennial and Generation Z.

Market Highlights
Online Grocery Market is expected to project a notable CAGR in 2031
Online Grocery market to surpass USD XX.XX billion by 2030 from USD XX.XX billion in 2021 at a CAGR of XX.X% in the coming years, i.e., 2021-31. Online Grocery market has grown enormously in importance in recent months due to the changing lifestyle of consumers, increasing urbanization, and the tech-savvy generation who prefer to buy products online. Use convenient and customizable online platforms to shop for groceries instead of going to local vendors.

Online Grocery Market: Segments
Staples and Cooking Essentials segment to grow with the highest CAGR during 2021-31
Online Grocery market is segmented by Product Type into Fresh Produce, Breakfast & Dairy, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials, and Others. The Staples and Cooking Essentials segment held a notable share in 2020 attributed to the repetitive shopping of staples that include food grains, flours, and essentials like oil that are fundamental requirements of the many households within the Asia Pacific. Furthermore, changing lifestyles and rising income are paving the way for growth over the following seven years.

Online segment to grow with the highest CAGR during 2021-31
Online Grocery market is segmented by Payment Method into Online and Offline. The Online segment dominated the Online Grocery market in 2020 and is expected to grow with the highest CAGR in the forecast period. The growth in this segment is due to the growing preference for online payments.

Online Grocery Market: Key Players
Amazon India Pvt. Ltd.

Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis

Godrej Nature’s Basket Ltd.
Grofers India Pvt. Ltd.
Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
Reliance Retail Ltd. (Reliance Fresh)
Spencer’s Retail
Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
UrDoorstep eRetail Pvt. Ltd.
Other Prominent Players
Online Grocery Market: Regions
Online Grocery Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, Asia Pacific, and the Middle East, and Africa. Europe Online Grocery Market accounted for the biggest amount of share in 2019. The presence of leading retail grocery chains and therefore the growing popularity of online shopping in countries like the Unite Kingdom, Germany, Spain, France, and Italy are driving the regional market growth. The COVID-19 pandemic is providing a big short-term boost to the industry. In keeping with Waitrose & Partners, a brand of supermarkets, out of 2,000 consumers within the UK, 60% have shopped online for groceries since the pandemic with 40% citing convenience as the primary reason.

Segmentation
By Product Type
Fresh Produce
Breakfast & Dairy
Snacks & Beverages
Meat & Seafood
Staples & Cooking Essentials
Others
By Payment Method
Online
Cash on Delivery
Online Grocery Market Dynamics
Online Grocery Market Size
Supply & Demand
Current Trends/Issues/Challenges
Competition & Companies Involved in the Market
Value Chain of the Market
Market Drivers and Restraints

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The post Global Online Grocery Market Outlook 2030: Industry Insights & Opportunity Evaluation, 2019-2030 first appeared on CRI Report.

Market insights:
In India, the online grocery market is at a nascent stage. Currently, only ~0.15% (~ 2 Mn out of ~1.35 Bn) Indians make purchases through online channels, mainly due to abundant presence of physical grocery stores across the country. However, the market is anticipated to expand at a high compound annual growth rate (CAGR) of ~68.66% during the 2018-2023 period, to reach a value of INR 1,034.13 Bn by 2023, from its 2018 value of INR 62.01 Bn. Such remarkable growth of the Indian online grocery market is accounted to growing customer acceptance, increasing internet and smartphone penetration, new market entries, and increasing focus of online marketplaces like Amazon and Flipkart in the grocery segment.

Key growth drivers of the market:

o Acceptance of online grocery platforms in India has increased in recent years, owing to the rising awareness about the convenience of the process, digital literacy, and internet penetration across the country. Also, investors have shown the tendency to spend large amounts on customer retention, because grocery is an essential commodity for households. Therefore, customer acceptance, and high investment on customer retention is expected to lead to further growth of the online grocery market in India.
o The central government of India has designed and developed smart cities with a state-of-the-art infrastructure for setting up different models of e-commerce and online transactions. Owing to these reasons, the online grocery retail market is witnessing a growth rate of ~25-30% in the Indian metropolitans, and other emerging smart cities.

Key deterrents to the growth of the market:
o Most of the customers in India often show a tendency of switching between different online grocers, with special inclination towards those who provide more discounts, charge less for delivery, and generate a higher value of coupon offers. As a result, the online grocery market players face difficulty in developing a loyal customer base in India, which in turn hampers their business.
o The Indian grocery market is dominated by ~12 Mn local physical grocery stores. Most of the Indian families still prefer purchasing grocery from the ‘kirana’ stores, because of lack of trust, thus hindering generation of revenue for online grocers.

Companies covered:

o Amazon India Pvt. Ltd.
o Godrej Nature’s Basket Ltd.
o Grofers India Pvt. Ltd.
o Paytm E-Commerce Pvt. Ltd. (Paytm Mall)
o Reliance Retail Ltd. (RelianceSmart.in)
o Supermarket Grocery Supplies Pvt. Ltd. (BigBasket)
o UrDoorstep eRetail Pvt. Ltd.
o ZN Retail Pvt. Ltd.

The post Online Grocery Market in India (2018-2023) first appeared on CRI Report.