The India Quick Commerce market is expected to grow at a CAGR of around 67% during the forecast period of 2023-28, says MarkNtel Advisors in their recent research report. The major factors contributing to the growth of the Q-commerce market in India are shifting consumer behavior from seeking daily small-sized purchases compared to larger monthly purchases & higher adoption of quick commerce among working-class consumers. This is due to the convenience & speed offered to the customers, which led to a rise in its market.
Moreover, the advent of COVID-19 has led retail companies to change their way of doing business & pushed them to adopt newer ways such as short-time deliveries. In addition, with the growing customer need for faster delivery & unplanned orders, the quick commerce platform serves the customer requirement by incorporating an instant delivery service mechanism of 20-30 minutes as soon as they receive the order.
Furthermore, the growing inclination of customers towards online shopping & willingness for extra charges to purchase products at their doorstep, owing to their rising disposable income, motivate companies to expand their business by establishing new dark stores across different cities. In 2023, Ola Dash announced to expand its dark store network to about 500 dark stores spread across 20 cities for its quick commerce network to tap the growth potential in India.
Additionally, the Q-commerce companies have raised funding to expand their business, with the establishment of new dark stores across India to cater to the emergent need of the customer for instant delivery service. In 2023, Dunzo announced to raise USD240 million in funding steered by Reliance Retail Ventures Limited through the participation of investors such as Lightbox, Lightrock, 3L Capital, and Alteria Capital.
Therefore, this helped the companies grow their business-to-business (B2B) units as well as facilitate logistics for local merchants. Thus, the rising investments, as well as the setup of new dark stores within the country, would further strengthen the Quick Commerce market during the forecast period, further states the recent research report, "India Quick Commerce Market Analysis, 2023-28."
Snacks & Beverages Grabbed the Major Market
Based on the product type, the market bifurcates into Grocery, Snacks & Beverages, Bath & Beauty, Baby Essentials, Home Care, and Others. Among all, snacks & beverages gained traction in the India Quick Commerce (Q-commerce) market during the historical period.
Moreover, COVID-19 resulted in an upsurge in demand in the consumption of snacks & beverages such as juices, potato chips, cakes, baked biscuits, etc., among children, youth, and other age groups across the country. Additionally, rapid urbanization, busy lifestyles, and greater access to smartphones led individuals to increase their dependence on ready-to-eat packaged food & beverages.
Consequently, the ease in the availability of a varied range of products in snacks & beverages pushed customers to adopt instant delivery options, thereby giving rise to the quick commerce culture.
Southern Part of India Held a Significant Share in the Quick Commerce Market
Geographically, the Southern region of India witnessed exponential growth in the Quick Commerce market during the historical period. A major reason for the growth of the Q-commerce market is that key market players such as Zepto, Swiggy Instamart, Ola Dash, etc., have expanded their reach into cities like Bangalore, Kochi, Hyderabad, Chennai, etc., in the southern part of the country. Moreover, another major factor for the growth of quick commerce platforms is the rising working-class population, growing awareness regarding the adoption of technology, changing lifestyles, aging population, etc.
This has helped individuals facing the problem of time constraints restricting the purchase of their instant requirement of day-to-day essentials. Subsequently, owing to these factors, individuals are likely to prefer online platforms, i.e., quick commerce, to purchase their day-to-day groceries. Hence, enabling the customers to visit stores less frequently.
In addition, considering the growing inclination toward an online platform, quick commerce companies are largely expanding their product portfolios as well as adding more retail partners to enhance their delivery platform & meet customer expectations in the minimum time.
Thus, providing an instant delivery experience to customers through convenient & speedy distribution of products would further drive the quick commerce market in the forthcoming years.
According to MarkNtel Advisors, the leading players in the India Quick Commerce Market are Swiggy, Instamart, Zepto, Blinkit, Dunzo Daily, Ola Dash, BB Now, Flipkart Quick, Amazon Fresh Store, JioMart Express, and ZopNow.
Key Questions Answered in the Study