2020/11/1 – CRI Report

Online Grocery Market in India 2020

admin — Mon, 04 Jan 2021 05:20:33 +0000

Increased penetration of the internet and smartphones, and large-scale adoption of 4G have smoothed the way for Indians with hectic lifestyles to embrace online grocery shopping. The trend can be observed especially in tier II and III cities across the country. As of September 2020, the online food and grocery retail accounted for ~0.3% of the overall retail market.

Market insights:
The online grocery market in India was valued at INR 135.62 Bn in 2019 and is expected to reach INR 1,227.52 Bn by 2025, expanding at a CAGR of ~41.80% during the forecast period (2020-2025). Venture capitalists such as SoftBank Vision Fund, Tiger Global, and Sequoia Capital are investing in online grocery companies, mainly owing to the possibility of high returns. The initial days of the coronavirus-led lockdown were difficult for the online grocery market in India. Several e-commerce platforms entered the e-grocery space to cater for the increased demand during the lockdown. Moreover, to deal with the challenges, consumer majors and retailers formed unusual alliances with online aggregators, creating business opportunities amid the crisis. The online grocery market gained much popularity, owing to the social distancing norms and fear of virus transmission.
Impact of COVID-19:
The online grocery market in India is one of the few sectors that has benefited from the pandemic. With the imposition of the nationwide lockdown, consumers had begun panic-buying and stockpiling; as a result, online grocery shopping surged. The soaring grocery delivery demand and supply chain and logistics challenges during the initial days of the lockdown had caused substantial disruptions in the e-grocery market. However, key players stabilized their operations with the declaration of the services of e-commerce retailers as essential in April 2020. Grocery and on-demand delivery companies, such as Grofers, Big Basket, Milkbasket, Ninjacart, SuprDaily, and Dunzo, witnessed a significant increase in demand. BigBasket reported fulfilling 283,000 orders per day, a steep rise of ~89%, in comparison to 150,000 orders per day before the pandemic. Owing to social distancing norms and hygiene regulations, most consumers avoided getting groceries and daily essentials from brick-and-mortar retail stores.
Key growth drivers of the market:
• Owing to improved digital literacy and increased use of smartphones, people have become aware of various e-commerce services such as online shopping. Purchasing groceries online has become prevalent because it is convenient, and goods are delivered at the doorstep without any hassle.
• Online grocery companies have introduced features such as product suggestions based on prior searches and purchases, allowing placing orders from different vendor partners, and live order tracking. Marketing strategies such as cashback offers, discounts, and free deliveries on orders exceeding specific price amounts have been employed by the key players. Therefore, innovations and strategies undertaken to increase the customer base, are propelling the growth of the market.
Key deterrents to the growth of the market:
• There are abundant local grocery stores, kiranas, hypermarkets, and supermarkets across the country that allow people to see, touch, and feel the products before buying. Local grocery stores offer facilities such as free delivery to customers and weekly or monthly credit facilities to regular customers, which is why these stores still thrive at every corner of the country. Therefore, the abundance of local grocery shops and the benefits associated with them impedes the growth of the online grocery market.
• Online grocery companies are required to possess well-equipped warehouses to maintain their stock of perishable goods such as fruits, vegetables, meat, fish, seafood, eggs, and dairy products. They also require proper packaging facilities, carriage, and well-trained delivery personnel for proper functioning of the process. These factors increase operational costs of online grocery companies and reduce the profit margin, hindering the growth of the market.
Companies covered:
• Spencer’s Retail Limited
• Amazon India Limited
• Avenue E-commerce Limited (Dmart)
• Dunzo Digital Private Limited
• Grofers India Private Limited
• Max Hypermarket India Private Limited (Spar)
• Natures Basket Limited
• Paytm E-commerce Private Limited (Paytm Mall)
• Reliance Retail Limited
• Satvacart Innovative Concepts Private Limited
• Supermarket Grocery Supplies Private Limited (BigBasket)
• UrDoorStep E-retail Private Limited

The post Online Grocery Market in India 2020 first appeared on CRI Report.

Private Hospital Sector in India 2020

admin — Mon, 04 Jan 2021 05:20:33 +0000

Market insights
Private hospitals play a pivotal role in the healthcare industry, providing healthcare services to more than 70% rural population and 80% urban population in India. In terms of revenue, the private hospital sector in India was valued at INR 7,557.84 Bn in 2019, and is estimated to reach INR 18,315.96 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~16.18% during the 2020-2025 period.
Segment insights:
The private hospital sector in India is segmented into self-pay, government payer, and corporate insurer. The self-pay segment was the largest in 2019, accounting for ~47.00% share of the overall market revenue. Corporate insurer is estimated to be the fastest-growing segment of the market, expanding at a CAGR of 21.47% during the 2020-2025 period.
Increased public healthcare expenditure has resulted in the growth of the government payer segment. The penetration of medical insurance by corporate entities is likely to drive the corporate insurer segment. A rise in purchasing power, higher demand for quality healthcare, and expansion of the private hospital chain network has propelled the growth of corporate medical insurance.
Market insights:
Factors such as increased income, a rise in geriatric population, and an evolving disease profile have contributed to the sector’s growth. The life expectancy of Indians has increased considerably, inciting more demand for healthcare services from the elderly population suffering from various degenerative diseases. On the other hand, the country experienced an epidemiological transition in the past few decades, with the shift from communicable to non-communicable diseases. The growing burden of lifestyle diseases has attracted demand for healthcare services from the private hospital sector. Furthermore, India’s emergence as a preferred destination for medical tourists has stimulated the private hospital sector’s growth.
The sector encounters several restraining factors such as financial constraints, regulatory hurdles, and lack of skilled medical professionals. The market is highly capital intensive with a low and delayed return on investments. The sector faces financial challenges owing to reduced profit margin and a surge in operating expenditure. Furthermore, regulatory headwinds and the shortage of experienced healthcare professionals result in significant challenge for market players.
Impact of COVID-19:
The pandemic has disrupted the private hospital sector in India, negatively impacting patient footfall, hospital occupancy rate, and revenue. Various private hospitals have paused operations in the non-emergency and outdoor patient department (OPD) due to lockdown and fear of infection. The cancellation of elective surgeries and a sharp drop in the arrival of medical tourists led to poor revenue generation from indoor patient department (IPD) services.
The decline in patient footfall in OPD and patient admission in IPD had intensified the financial distress of the private hospital sector, which was already burdened with low-profit margin and high costs. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the sector witnessed a drop in revenue of around 50% and a fall in EBITDA by nearly 60%, in the last week of March 2020.
Companies covered
• Apollo Hospitals Enterprise Ltd
• Aster DM Healthcare Ltd.
• Fortis Healthcare Ltd.
• HealthCare Global Enterprises Ltd.
• Max Healthcare Institute Ltd.
• Narayana Hrudayalaya Ltd.
• Shalby Ltd.
• Columbia Asia Hospitals Pvt. Ltd.
• Manipal Health Enterprises Pvt. Ltd.
• Medanta The Medicity

The post Private Hospital Sector in India 2020 first appeared on CRI Report.

Green Tea Market in India 2020

admin — Mon, 04 Jan 2021 05:20:32 +0000

In the past few years, green tea has emerged as a healthy beverage, backed by its perceived health benefits. Regular consumption of green tea is expected to boost the immune system, help maintain body weight, and reduce physical stress. The green tea market in India is expected to reach a value of INR 11.37 Bn by FY 2025, expanding at a CAGR of ~11.59% during the FY 2020–FY 2025 period.
Green tea products are available both in offline stores, as well as online e-commerce portals such as Amazon and Flipkart.
The COVID-19 pandemic has severely impacted tea producers across the world. The green tea market in India suffered huge losses due to stalled imports from China and Iran. Since the nationwide lockdown coincided with the harvest season of the first flush tea, the first tea leaves of the season could not be plucked on time due to lack of manpower, leading to a supply shortage across the country. Logistics constraints due to the lockdown resulted in transportation challenges, which disrupted supply chain. As a result, the price of tea skyrocketed. In July 2020, tea price increased to INR 283.53 per kg year-on-year basis, up from INR 162.09 per kg in July 2019, in Guwahati, Assam.

Market Influencers
Consumers’ improved awareness on leading a healthy lifestyle is fueling the growth of the green tea market in India. The prevalence of obesity and cardiovascular diseases has increased the demand for green tea. However, higher price of green tea as compared to black tea and people’s lack of awareness regarding green tea as a wellness product is deterring the market growth.

Companies covered
• Hindustan Unilever Limited
• Tata Consumer Products Limited
• Organic India Private Limited
• 24 Mantra Organic
• Typhoo India
• Twining and Company Limited

The post Green Tea Market in India 2020 first appeared on CRI Report.

Cyber Security Solution Market in India 2020

admin — Mon, 04 Jan 2021 05:20:31 +0000

Cyber Security Solution Market in India

India is going through a phase of rapid technological development which comes with an increasing risk of being exploited by cybercriminals for economic gains. In the wake of the pandemic, it has become crucial for organizations to strengthen their business continuity plans (BCPs), with special attention on cybersecurity products and solutions, to prevent businesses from falling prey to malware and other cyber threats.

The cybersecurity market in India is estimated to reach INR 288.99 Bn by 2025, expanding at a CAGR of ~12.43% during the 2020-2025 period. Digital evolution, increased cyberattacks, regulatory focus on security breaches, increased attention from companies’ board to cybersecurity requirements, and government initiatives continue to drive market growth. In 2019, CERT-In handled around 394,449 cyber incidents, which recorded a growth of 47.19% over a 10 year period.

Cybersecurity products segment:
The cybersecurity products segment is expected to witness a higher growth rate (13.27%) than cybersecurity services (11.46%) during the forecast period. Increased spending on cybersecurity products backed by specialized technologies ensures this segment’s leading position in the cybersecurity market, with a share of 52%.

Data security and endpoint security will witness higher growth rates than the other product segments. Increased number of smartphone users and internet subscribers, coupled with growing popularity of the BYOD (bring your own device) model and remote work culture is expected to fuel growth.

Security intelligence, detection and response is expected to account for ~30% of the products segment revenue in 2025, continuing to hold its position as the highest contributor to the India cybersecurity market.

Cybersecurity services segment:
The cybersecurity services segment is expected to reach INR 131.09 Bn by 2025. Security testing and incident response are likely to attract the maximum revenue in the cybersecurity services space. Increased use of IoT devices, regulatory mandates by the RBI, and imminent threat of cyberattacks are propelling market growth.

Security devices need to be constantly monitored and configuration upgrades have become necessary due to the rapid pace of technological advancements. As a result, security operations hold the largest market share (~39%) in the overall services mix.

End-user segments:
The top three sectors that contribute to the maximum cybersecurity demand are banking and financial services, technology and associated services, and government sectors. Looming security risks and cyber threats, owing to the use AI, blockchain, IoT, and real-time payments, and introduction of mobile point-of-sale devices have increased the need for cybersecurity spends in the banking and financial services industry.

More stringent guidelines on data privacy, such as Personal Data Protection Bill 2019, require the IT sector to focus on cybersecurity infrastructure. Cybersecurity spend by this sector is expected to reach INR 71.54 Bn by 2025, expanding at a CAGR of 18.54% during the 2019-2025 period. The Indian government is investing massive amounts to build robust cyber protected systems, to safeguard digital services from potential cyber threats.

Impact of COVID-19:
The COVID-19 pandemic has caused worldwide economic disruptions, impacting health, businesses, and livelihoods of millions of people. There has been a stupendous hike in the volume and sophistication of cyberattacks as organizations try to struggle through the ongoing crisis. In 2020, the volume of cyberattacks on domestic organizations doubled in March as compared to January, with the outbreak of COVID-19.

Organizations need to revisit their BCPs and incident response plans in the wake of the pandemic, which has disrupted key elements of the supply chain. Every organization should focus on having robust VPN services and revised security defenses to minimize the risk of cyber threats, which has escalated amid the pandemic.

Companies covered

• HCL Technologies Limited
• Tata Consultancy Services Limited
• Wipro Limited
• Cisco Systems (India) Private Limited
• Dell India Private Limited
• IBM India Private Limited
• Northrop Grumman International Inc.
• Oracle India Private Limited
• NortonLifeLock Inc.

Cybersecurity Solution Market in India 2019

The post Cyber Security Solution Market in India 2020 first appeared on CRI Report.

E-Pharmacy Market in India 2020

admin — Mon, 04 Jan 2021 05:20:31 +0000

The traditional pharmacy retailing system face challenges such as counterfeit medicines, poor inventory management, limited brand tracking, and lack of documentation. E-pharmacy emerged as a safe and convenient interface that can address these issues and offer better customer experience. In terms of revenue, the e-pharmacy market in India was valued at INR 35.21 Bn in 2019, and is estimated to reach INR 313.80 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~43.98% during the 2020-2025 period.
Segment insights:
The e-pharmacy market in India is categorized into two segments chronic therapy and acute therapy. The market is dominated by the chronic therapy segment, which accounted for ~65% share of the overall revenue in 2019. Acute therapy is anticipated to be the fastest-growing segment, expanding at a CAGR of 49.74% during the 2020-2025 period.
Consumers with chronic ailments such as cardiovascular diseases and diabetes require to procure medications frequently to pursue their long-term treatment procedure. They consider e-pharmacy as a preferred platform for purchase medicines, owing to improved accessibility, attractive discounts, and value-added services such as treatment plan and adherence management.
Market insights:
The e-pharmacy market in India has gained significant traction over the past two to three years; the key enablers for its momentous growth include increased penetration of the internet, rapid growth of smartphone ownership, prevalence of lifestyle disease, and government initiatives. However, the market experiences considerable challenges due to the lack of stringent regulations, concerns regarding data security, and bottlenecks in last-mile delivery.
The immense growth potential of the India e-pharmacy market has attracted the entry of various health-tech start-ups, leading e-commerce companies, and traditional brick-and-mortar pharmacies in the market space. In 2020, the market witnessed the entry of leading players such as Amazon, Flipkart, and Reliance. In August 2020, Reliance Retail Ventures Limited (RRVL) stepped into the market through the acquisition of the e-pharmacy player, Netmeds. In the same month, two key e-pharmacy companies, PharmEasy and Medlife announced their merger. The entry of established companies with strong e-commerce capabilities, coupled with the consolidation trends is likely to intensify the market rivalry.

Impact of COVID-19:
The pandemic has emphasized the importance of e-pharmacies among its stakeholders, including sellers, consumers, medical professionals, and regulators. Consumer behavior has changed drastically during the critical period; the market witnessed rapid adoption among geriatric populations and consumers in non-metro areas. E-pharmacy companies have sharpened their business strategies to seize the growth opportunity. Partnership with hyperlocal stores, adopting a hybrid business model, and strengthening logistics and technology infrastructure are the key strategies implemented by market players.
Companies covered
• Apollo Pharmacies Limited
• Medlife
• MedPlus Health Services Private Limited
• Netmeds Marketplace Limited
• 1mg
• 91Streets Media Technologies Private Limited (PharmEasy)
• Healthkart
• mCHEMIST Global Private Limited
• Medsonway Solutions Pvt Ltd
• Truemeds

The post E-Pharmacy Market in India 2020 first appeared on CRI Report.