India Quick Commerce

India Quick Commerce Market Research Report: Forecast (2023-2028)

By Product Type (Grocery, Snacks & Beverages, Bath & Beauty, Baby Essentials, Home Care, Others), By Region (North, East, West, South), By Competitors (Swiggy Instamart, Zepto, Blinkit, Dunzo Daily, O Read more

  • FMCG
  • Dec 2022
  • 110
  • CG10217

Market Definition

Quick Commerce (Q-Commerce) is the next generation of e-commerce that brings small quantities of goods to customers instantly, whenever & wherever required by covering companies that provide speedy deliveries of daily items. The major factors contributing to the growth of the Quick Commerce market include changing lifestyles, growing urbanization, shifting consumer behavior, and rising consciousness towards the spread of viruses & other infections, thereby escalating the market share of Quick Commerce in recent years.

Market Insights

The India Quick Commerce Market is projected to grow at a CAGR of around 67% during the forecast period, i.e., 2023-28. In India, the Quick Commerce market has shown significant growth, as it provides a faster shopping experience than any other e-commerce platform. The factors contributing to the high adoption of the Quick Commerce platform are its fast speed & convenient delivery options enabling customers to purchase day-to-day essentials through the quick commerce platform.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 67%
Region Covered North, East, West, South
Key Companies Profiled Swiggy Instamart, Zepto, Blinkit, Dunzo Daily, Ola Dash, BB Now, Flipkart Quick, Amazon Fresh Store, JioMart Express, ZopNow, Others
Unit Denominations USD Million/Billion

 

Due to these factors, it could be expected that the quick commerce market in India will be on the rise in the next few years. Furthermore, growing urbanization, busy lifestyles, and an increased preference for online shopping over visiting stores are contributing to the rapid growth of the quick commerce market.

Additionally, Indian startup companies such as Blinkit, Zepto, Swiggy Instamart, Dunzo, etc., are gaining traction by raising resources, opening new dark stores, collaborating with third-party retailers, and expanding their product portfolio in order to offer anything from food to fashion, thus pushing the instant-delivery sector beyond groceries. For instance:

  • In 2023, Zepto, a quick commerce company, raised about USD200 million in funding to enhance its business across India.

Furthermore, the quick commerce industry witnessed a drastic boom in 2020, with the outbreak of COVID-19. Additionally, the emergence of the pandemic led to the evolvement of key market players such as Zepto, Swiggy Instamart, BB Now, etc., in the quick commerce industry as they have shortened the delivery time through the establishment of new dark stores in the region. Hence, expanding instant grocery delivery to the market.

Moreover, these factors have optimistically impacted the quick commerce market across Indian cities. Thus, the growing occurrence & dependence on online platforms would further drive the Q-commerce market during the forecast period.

Key Trend in the Market

  • Rising Entry of Start-ups into the Market

The adoption of quick commerce caters to accomplishing the instant delivery needs ranging from 10 to 30 minutes of order fulfillment time. Many Q-commerce start-ups, such as Swiggy, Zepto, Blinkit, BB Now, etc., have entered the instant delivery ecosystem to expand their customer base. These start-ups are rapidly attracting investments, which would help them to penetrate the Indian quick commerce market. In 2021, Swiggy announced its plan to invest around USD700 million into Instamart.

Furthermore, Zepto raised USD100 million in 2021 in a Series C round to expand its presence beyond metro cities. Thus, the trend of emerging start-ups in the country due to the growing demand for instant deliveries is expected to drive the India Quick Commerce market's growth.

Impact of COVID-19 on the India Quick Commerce Market

The COVID-19 pandemic is one of the drivers which has increased the adoption & growth of quick commerce in India. The pandemic altered consumers' mindsets which pushed them to shift their shopping platform from offline to online mode. This was due to the government restriction on movements, which forced people to stay at home, and led individuals to adopt quick commerce platforms for their daily necessities to avoid human contact. In addition, social distancing & contactless delivery have also significantly impacted the Indian Quick Commerce market.

With the instant delivery features, consumers have become more prone to prefer quick commerce to fulfill their daily requirements for grocery products. The quick commerce platforms also witnessed disruption in the supply chain network due to the shutdown of manufacturing plants, which resulted in the delay in the shipments of food, beverages, baby care products, and other home essentials. Considering this, the customer faced the problem of being out of stock on many grocery products in the quick commerce app as there was a non-availability of products in the dark stores.

Though, with the ease in restrictions post-COVID-19, the manufacturing units are fulfilling the backlog orders of their channel partners, thereby creating a large availability of grocery products in the dark stores. Furthermore, several Q-commerce start-ups, such as Swiggy, Zepto, Blinkit, BB Now, etc., have entered the instant delivery ecosystem to expand their customer base. These start-ups are rapidly attracting investments, which would help them to penetrate the Indian quick commerce market.

Market Segmentation

Based on the Product Type:

  • Grocery
  • Snacks & Beverages
  • Bath & Beauty
  • Baby Essentials
  • Home Care
  • Others (Pets, Office Supplies, Healthcare, Alcohol, etc.)

Of them, Snacks & Beverages has been holding a significant share in the India Quick Commerce (Q-commerce) market since 2020, in line with the growing consumption of carbonated drinks, juices, baked biscuits, fried potato chips, etc., among the working professionals, youth, and other age groups.

The rising need for day-to-day essentials among the aging population, housewives, children, and especially the working-class consumers, etc., has accelerated the demand for instant delivery options, thereby inclining the market for quick commerce service on a large scale. Moreover, the growing need of consumers for other products such as apparel, healthcare, home care, etc., are also being included by the quick commerce companies to expand their product portfolios.

Hence, the availability of a wide range of products, including groceries, snacks & beverages, and other essentials, the Quick commerce platform is expected to attract customers, subsequently assisting to propagate the demand for Quick commerce services in the near future.

Regional Landscape

Geographically, the India Quick Commerce Market expands across:

  • North
  • South
  • East
  • West

Based on the region, the Southern part of India captured the major market share in the India Quick Commerce market. The Q-commerce companies are expanding their presence in metro & Tier 1 cities such as Hyderabad, Bangalore, Pune, Mumbai, Chennai, etc., in the Southern region. Moreover, the major factors attributing its demand in these prime cities are the presence of the working population, large internet penetration as well as high awareness regarding the usage of technology.

The individuals living in these cities are more tech-oriented & are more likely to refer to an online platform to purchase their day-to-day groceries due to their busy lifestyles, aging populations, and the prevalence of work from home. Hence, this leads to a lower preference to visit stores.

In addition, the advent of COVID-19 has highlighted their daily needs primarily in terms of e-commerce delivery. Further, considering the growing instant delivery need, companies are expanding their dark stores to minimize delivery timelines & capture more & more customer bases. In 2023, BigBasket, which has a major presence in the south region, announced the delivery of 15,000 orders in a day for the quick commerce service.

Therefore, the changing lifestyles as well as the need for instant delivery proliferated the demand for quick commerce in the country & would further drive the Q-commerce market in the forthcoming years.

Recent Developments by the Leading Companies

  • In 2021, Blinkit has announced to set up 300 partner stores to enable its 10 minutes, grocery delivery in areas where it was not able to deliver the day-to-day essentials in 10 minutes.
  • In2021, Swiggy announced to invest around USD700 million in express grocery delivery service Instamart so as to intensify the competition in the fast-moving quick commerce space in India.

Market Dynamics:

Key Driver: Growing Need for Instant Delivery to Drive the Market

Quick commerce is emerging as one of the fastest-growing e-commerce platforms serving the need for convenience & speedy delivery among customers. The instant delivery service, i.e., 10-30 minutes for unplanned orders, is attracting mid to high-level income customers to replace their conventional way of purchasing groceries with an instant delivery platform.

Moreover, the pandemic led consumers to change their purchasing behavior & increased the inclination of the population toward the online platform, giving more importance to speed & comfort. Therefore, all these factors are driving the growth of quick commerce to expand among different segments & cities of India.

Possible Restraint: Lack of Real-time Visibility on Retailer's In-store Inventory to Hinder the Market Growth

As the quick commerce retail space is booming drastically, it also found a gap between third-party retailers & vertically integrated instant-need companies. These instant delivery companies do not have accurate & real-time visibility into their retailer's in-store inventory. Consequently, the customers witnessed out-of-stock problems on most of the food & other grocery items at the time of purchase on the delivery application, hence acts as a challenge for the growth of quick commerce in the Indian market.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the India Quick Commerce Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the India Quick Commerce Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the India Quick Commerce Market based on the competitive landscape?
  5. What are the key results derived from surveys conducted during the India Quick Commerce Market study?

Frequently Asked Questions

A. The India Quick Commerce Market is expecting around 67% CAGR during 2023-28.

A. The Snacks & Beverages product type of the quick commerce segment is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.

A. The growth opportunity driving the India Quick Commerce Market includes the adoption of a Hybrid Approach in the Quick Commerce Platform.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Market Segmentation
    4. Assumptions
  2. Executive Summary
  3. Impact of COVID-19 on India Quick Commerce Market
  4. India Quick Commerce Consumer Behaviour Analysis
    1. Buyers Profile
      1. Age
      2. Sex
      3. Country of Domicile
      4. Income Group
      5. Profession
    2. Willingness to opt Q Commerce
    3. Reasons to Opt Q-commerce
    4. Region-wise Penetration
    5. Most Preferred Products to Buy
    6. Products Customers Willing to Buy via Q Commerce in Next Couple of Years
    7. Expectations from the Q-commerce Companies
  5. India Quick Commerce Market Trends & Insights
  6. India Quick Commerce Market Dynamics
    1. Drivers
    2. Challenges
  7. India Quick Commerce Market Regulations & Policies
  8. India Quick Commerce Market Attractiveness- Porter’s Five Forces Analysis
    1. Buying Power of Buyers
    2. Buying Power of Sellers
    3. Industry Rivalry
    4. Threat of New Entrants
    5. Threat of Substitutes
  9. India Quick Commerce Market Supply Chain Analysis
  10. India Quick Commerce Market Hotspots & Opportunities
  11. India Quick Commerce (Q-commerce) Market Start-up Ecosystem
    1. Entrepreneurial Activity
    2. Year on Year Funding Received
    3. Funding Received by Top Companies
    4. Key Investors Active in the Market
    5. Series Wise Funding Received
      1. Seed Funding
      2. Angel Investing
      3. Venture Capitalists (VC) Funding
      4. Others
  12. India Quick Commerce (Q-commerce) Market, 2021
    1. Total Addressable Market (TAM)
    2. Service Obtainable Market (SAM)
    3. Serviceable Available Market (SOM)
  13. India Quick Commerce Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Product Type
        1. Grocery
        2. Snacks & Beverages
        3. Bath & Beauty
        4. Baby Essentials
        5. Home Care
        6. Others (Pets, Office Supplies, Healthcare, Alcohol, etc.)
      2. By Regions
        1. North
        2. East
        3. West
        4. South
      3. By Company
        1. Competition Characteristics
        2. Operating Model & Capabilities
        3. Market Share of Leading Companies, By Revenues
  14. India Quick Commerce Market Key Strategic Imperatives for Success and Growth
  15. Competitive Outlook
    1. Competition Matrix
      1. Product Portfolio
      2. Brand Specialization
      3. Target Markets
      4. Target Products
      5. Research & Development
      6. Strategic Alliances
      7. Strategic Initiatives
  16. Company Profiles
    1. Swiggy Instamart
    2. Zepto
    3. Blinkit
    4. Dunzo Daily
    5. Ola Dash
    6. BB Now
    7. Flipkart Quick
    8. Amazon Fresh Store
    9. JioMart Express
    10. ZopNow
    11. Others
  17. Disclaimer