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Wide Acceptance of Online Shopping and Busy LifeStyle Spurring the Growth of Online Grocery Market in India - 6Wresearch

18 November, 2015

India Online Grocery Market is in its nascent stage and primarily confined to Tier 1 cities. Rising internet penetration, acceptance of smartphones, changing consumer buying trends, gaining consumer confidence towards online shopping and better service quality are tremendously boosting the market for online grocery in India. Online grocery concept enhances consumer’s shopping experience, where buyer can purchase all household products in just one click without any physical presence.

According to 6Wresearch, India Online Grocery Market is estimated to grow at a CAGR of 62.7% during 2016-22. India is the sixth largest grocery market in the world, which is majorly dominated by the unorganized sector with over 12 million pop and mom stores all over the country. Online grocery market is one of the fastest growing markets fueled by the intensifying e-commerce industry.

According to Avishrant Mani, Senior Research Analyst, Research and Consulting, 6Wresearch, “Changing lifestyle coupled with long working hours has shifted purchasing trend from offline to online format. In India’s online grocery market, youth population is playing very significant role for these online grocery items purchases".

“Furthermore, attractive offers provided by online grocery players is wooing the consumers to opt for online purchases. Grocery and Staple segment is contributing major revenue share in the online grocery market, followed by FMCG segment. Fruits and vegetables segment is growing sluggishly as compared to other grocery segments, since consumer prefers to purchase fruits and vegetables in fresh condition, favors touch and smell of the items to judge the quality", Avishrant further added.

According to Sathi Paul, Research Associate, Research and Consulting, 6Wresearch, “Men have always been active users of online shopping. However, women are now energetically contributing in online sales; for instance, more than 68% of LocalBanya.com consumers are women".

In India, hyperlocal model is growing at faster rate as compared to pure-play model due to its distinctive benefits. Pure-play business model requires heavy investments and warehouses, which pushes the overall operating cost. On the other hand, hyperlocal model saves cost and time of delivery due to the support from the local merchant.

Bengaluru from southern region is the key market for online grocery, followed by Mumbai from western and Delhi from northern region. Online grocery companies are mainly operating in metropolitan cities due to better infrastructure facilities and higher internet penetration as compared to tier II and tier III cities. However, online grocery firms are now targeting tier II and tier III cities to expand their presence on pan India level. BigBasket, which is one of the key players of the market, which is planning to enlarge its operation to 50 cities by the end of 2016.

Some of the key companies in India’s online grocery market include – Aaram Shop, Grofers, Jiffstore, LocalBanya, MyGhrahak, Godrej Nature’s Basket, PepperTap, Bigbasket and ZopNow.

“India Online Grocery Market (2016-2022)” provides in depth analysis with 41 figures and 9 tables covered in 105 pages. The report estimates and forecast overall India’s Online Grocer market by revenue, segments such as FMCG, Grocery & Staple and Fruits & Vegetables, and regions such as northern, eastern, western, southern and north-eastern regions. The study highlights the key potential areas and provides insights on competitive landscape, company profiles, market drivers and restraints.

For detailed report description and purchase options please    click here:

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