India quick commerce market was valued at USD 3.05 billion in FY2024, expected to reach USD 13.38 billion in FY2032, with a CAGR of 20.3% for the forecast period between FY2025 and FY2032. The growth of Q-commerce business can be attributed to the democratization of mobile internet, the penetration of e-commerce, and omnichannel distribution.
E-commerce was disrupted by the COVID-19 pandemic and the control measures such as social separation and lockdowns. Consequently, the changing consumer behavior results in a rise in the number of people buying groceries and perishables online. The shift can be partially explained by the money being diverted from lifestyle and apparel purchases to necessities for the home. According to a research paper by IIM-Ahmedabad, COVID-19 caused an 80% increase in online food sales to USD 2.66 billion in 2020. The rapid commerce industry emerged due to the demand and expectations for instant delivery.
Several players are present in the quick commerce industry. Examples of prominent market players include Zepto, Swiggy Instamart, Blinkit, Dunzo Daily, Country Delight, and BigBasket. These players handle orders accurately and efficiently in real time by utilizing various business models tailored to their company dynamics and client needs. Storage requirements are essential components of the supply chain concerning quick commerce businesses.
Due to the growth of q-commerce, emerging companies, startups, and several well-established e-commerce businesses now have new business opportunities. Instant deliveries are being utilized to transport veggies, groceries, medications, and other products such as consumer electronics, clothing, and footwear. In April 2024, Swiggy merged its popular quick-commerce service, Instamart, with its mall offering, which deals with the sale of non-grocery products such as clothes, shoes, electronics, and electric appliances.
COVID-19 Fueled the Market Growth
The COVID-19 pandemic immensely affected consumer behavior, particularly shopping. Consumers relied on online shopping channels to fulfill their needs to minimize exposure to crowded places, keeping the social distancing measures in place. The behavioral shift impacted the quick commerce market significantly, accelerating its growth in the country.
During lockdowns, consumers experienced great convenience in ordering daily essentials using quick commerce platforms and getting them delivered to their doorstep. With eased restrictions, the reliance on quick commerce platforms grew as consumers prioritized convenience and safety.
Overall, the pandemic acted as a driver of the quick commerce market’s growth, prompting the players to innovate and expand their offerings to cater to evolving consumer needs.
Increased Internet Penetration Rate Propels the Growth of the Market
India’s expanding internet and increasing smartphone penetration are playing an important role in the growth of the q-commerce market. With increasingly affordable smartphones and data plans, more people are getting access to the internet, making it easier to find online shopping options. At the beginning of 2024, 52.4 percent of the population was using the internet, with 751.5 million users nationwide.
Consequently, consumers in urban and rural areas are adopting e-commerce platforms and q-commerce apps to meet their shopping needs. The ease of browsing a wide range of brands, comparing prices and ordering from the comfort of their home or on the go availability has contributed greatly to the popularity of online shopping. Additionally, the emergence of mobile apps designed for Indian consumers has further accelerated the adoption of quick commerce solutions. These apps offer user-friendly interfaces, secure payment methods and personalized recommendations, enhancing the overall shopping experience of consumers.
Future Market Scenario (FY2024 – FY2032F)
1. Technological advancements, including AI, machine learning, and IoT, will continue to drive innovation in the q-commerce industry. It might include using AI-powered algorithms to optimize distribution channels, predictive analytics to predict customer needs, and IoT-enabled devices for ordering convenience and managing inventory.
2. As environmental awareness rises among consumers, companies in q-commerce industry are likely to prioritize sustainability in their operations. It could include initiatives such as environmentally friendly packaging, improved distribution channels to reduce carbon emissions, and partnerships with local manufacturers to promote sustainable sourcing practices.
3. Quick-commerce stores are expected to diversify their offerings beyond grocery stores with a wider range of products and services, such as pharmaceuticals, electronics, household essentials, and prepared foods. These modifications will cater to customers’ evolving needs, providing a one-stop solution for all their daily needs.
Report Scope
“India Quick Commerce Market Assessment, Opportunities and Forecast, FY2018-FY2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India quick commerce market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, future market scenario, opportunities, and forecast between FY2025 and FY2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.
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