India Quick E-Commerce (Quick Commerce) Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (undefined)

India Quick E-Commerce (Quick Commerce) Market Analysis

The India Quick E-Commerce (quick commerce) market size was valued at US$ 652 million in 2023 and is expected to reach US$ 19,932.5 million by 2030, grow at a compound annual growth rate (CAGR) of 63% from 2023 to 2030.

India Quick E-Commerce (quick commerce) Market

Quick commerce refers to the ultra-fast delivery of groceries and other daily essentials within minutes using hyperlocal warehouses. It aims to deliver products to customers within 10-30 minutes. The key advantage of quick commerce is convenience and speed. Busy lifestyles and demand for instant gratification are the key drivers fueling the growth of this market.

The India Quick E-Commerce (quick commerce) Market is segmented by product category, order value, location, time-slot and payment mode. By product category, the market is segmented into fruits & vegetables, snacks & beverages, dairy & bakery, staples & cooking essentials, meat & seafood, personal care and others. The fruits & vegetables segment is expected to dominate the market share owing to rising demand for fresh produce.

India Quick E-Commerce (quick commerce) Market Drivers:

• Busy Lifestyles and Time Poverty among Working Professionals: The busy lifestyles and lack of time among working professionals in urban India is a major factor driving the growth of quick commerce. Long working hours coupled with commuting time leaves little time for grocery shopping. Quick commerce offers a solution by delivering daily essentials within 10-30 minutes. Working millennials find this highly convenient as it saves them time.
• Increased Smartphone and Internet Penetration: Rising smartphone and internet penetration in India has led to greater adoption of online services including quick commerce. India has over 500 million smartphone users currently. High mobile penetration makes quick grocery delivery accessible to larger consumer base including tier 2 & 3 cities. Easy availability of cheap data plans has also enabled this trend.
• Young Demographics and Tech Savvy Population: India has a young population with median age of 28 years. These young consumers are highly tech-savvy and rely heavily on their mobiles for services. They are the key target audience for quick commerce apps. Having grown up with smartphones, millennials in India are comfortable ordering groceries online via quick commerce platforms.
• Urbanization and Busy City Life: Rapid urbanization in India leading to large migrant population in big cities has created a demand for quick commerce. Hectic commutes and long working hours make grocery shopping difficult for city dwellers. Quick delivery makes grocery shopping highly convenient without the headaches of parking, queues and lugging bags.

India Quick E-Commerce (quick commerce) Market Opportunities:

• Tier 2 and 3 Cities Expansion: Quick commerce currently has penetration largely limited to big metro cities. Expanding into tier 2 and 3 cities offers a massive opportunity for growth. Rising mobile and internet penetration makes these markets viable. Local partnerships and vernacular interfaces can drive adoption.
• New Product Categories: Quick commerce can leverage its logistics expertise and warehousing infrastructure to deliver many more product categories like electronics, medicines, fresh flowers etc. within minutes. This creates incremental revenue opportunities and also differentiates them from e-grocers.
• Partnerships with Major Brands: Quick commerce firms have opportunity for win-win partnerships with major brands in categories like packaged foods, beverages, personal care etc. This provides brands a platform for rapid delivery while ensuring supply for quick commerce firms.
• Enhanced Customer Experience: Quick commerce firms can use data analytics to study buying behaviour and offer personalized recommendations. Loyalty programs and subscriptions can also enhance customer experience. Predictive algorithms can forecast demand patterns across locations.

India Quick E-Commerce (quick commerce) Market Restraints:

• Operational Complexities: Quick commerce involves complex real-time order procurement, warehouse management and inventory tracking which is challenging. Lack of scaling these operations can affect customer experience and unit economics adversely.
• High Customer Acquisition Costs: Significant spending is required by quick commerce firms for discounts, offers and promotions to acquire and retain customers in a highly competitive space. This leads to cash burn and affects profitability.
• Low Barriers to Entry and High Competition: Quick grocery delivery models can be easily replicated, leading to increasing competition. Swiggy & Zomato have already entered this space. E-grocers like BigBasket are also expanding into quick commerce, making competition cut throat.