New Delhi [India]: Quick commerce in India is poised for substantial expansion, growing at a year-on-year rate of 75-100%, far surpassing the traditional retail sector, which is projected to grow at a much lower rate, according to a report by Bernstein.
The report highlights that quick commerce is gaining traction due to its advantages in proximity, pricing, and product selection, making it a preferred choice for consumers.
“Quick commerce is uniquely positioned across Proximity, Pricing & Selection & will continue to grow at 75-100 per cent YoY vs retail at low teens,” the report stated.
Quick Commerce to Dominate Indian Grocery Market
Bernstein’s findings indicate that quick commerce is expanding faster than other internet-based retail channels and is expected to solidify its presence as a major retail force by 2025.
The report notes that India’s top 40-50 cities represent a grocery market worth approximately USD 250 billion, presenting a massive opportunity for quick commerce platforms.
“2025 will see amplification of quick commerce vs other channels. Top 40-50 cities constitute approx. USD 250Bn of the overall grocery market,” the report mentioned.
FMCG and D2C Brands Driving Growth
Leading consumer goods companies are increasingly integrating quick commerce into their sales strategies, recognizing it as a fast-growing and essential sales channel.
Currently, e-commerce contributes about 8-10% of the total revenue for major FMCG companies, with quick commerce gaining significant momentum. In FY24, quick commerce accounted for nearly half of all e-commerce sales, which made up 6.8% of total FMCG sales.
Direct-to-consumer (D2C) brands have particularly thrived on quick commerce platforms. The report reveals that over 30% of products on these platforms come from D2C or new-age brands.
“We expect quick commerce to continue leapfrogging other channels (retail, e-commerce) with growth led by new categories & Tier 2 expansion,” Bernstein added.
Key Players in India’s Quick Commerce Market
The major players in India’s quick commerce segment include Zomato, BigBasket, Zepto, Blinkit, and Swiggy Instamart. Traditional e-commerce giants Amazon and Flipkart are also venturing into this space through their respective platforms.
As quick commerce continues to evolve, it is expected to play a crucial role in shaping the future of retail in India, offering consumers faster and more convenient shopping experiences while providing brands with an efficient sales channel.