The digital grocery platforms (eGrocery) have been disrupting the enormous grocery opportunity in India over the past 5-6 years.
However, the eGrocery space is experiencing an interesting turn of events that is providing a boost to the overall sector. With the COVID lockdown, online at-home access to groceries has become the preferred mode. Moreover, the recent entry of JioMart (that has a ready untapped base of internet users) has made the eGrocery space more exciting than ever before.
The overall grocery spend in India is sized at $600 Bn+, as per 2019 estimates. eGrocery is disrupting this market with the entry of multiple business models. The eGrocery market GMV stood at a mere $0.05 Bn in 2013, but has grown 30x in the last 6 years to reach $1.5 Bn GMV in 2019. Despite the humongous growth, eGrocery only accounts for 0.3% of the overall grocery spend in India i.e. significantly less compared to developed countries like China, UK and US.
Moreover, eGrocery is largely a metro-based phenomenon with most players’ operations limited to metros. As a result, there is still a significant untapped opportunity in Tier 2+ cities.
Depending on inventory level and pricing (value vs convenience offering), eGrocery business models can be classified into 4 types - value-first inventory-led, convenience-first inventory-led and convenience-first market-places.
Value-first models have a base of 57 Mn eGrocery addressable households, compared to 39 Mn addressable households for convenience first models (basis the grocery purchase criteria of the online transacting households in India).
However, the eGrocery space is experiencing an interesting turn of events that is providing a boost to the overall sector. With the COVID lockdown, online at-home access to groceries has become the preferred mode. Moreover, the recent entry of JioMart (that has a ready untapped base of internet users) has made the eGrocery space more exciting than ever before.
The overall grocery spend in India is sized at $600 Bn+, as per 2019 estimates. eGrocery is disrupting this market with the entry of multiple business models. The eGrocery market GMV stood at a mere $0.05 Bn in 2013, but has grown 30x in the last 6 years to reach $1.5 Bn GMV in 2019. Despite the humongous growth, eGrocery only accounts for 0.3% of the overall grocery spend in India i.e. significantly less compared to developed countries like China, UK and US.
Moreover, eGrocery is largely a metro-based phenomenon with most players’ operations limited to metros. As a result, there is still a significant untapped opportunity in Tier 2+ cities.
Depending on inventory level and pricing (value vs convenience offering), eGrocery business models can be classified into 4 types - value-first inventory-led, convenience-first inventory-led and convenience-first market-places.
Value-first models have a base of 57 Mn eGrocery addressable households, compared to 39 Mn addressable households for convenience first models (basis the grocery purchase criteria of the online transacting households in India).
Table of Contents
1.Indian Grocery - $1 Tn market (2025) up for digital disruption
2. Indian eGrocery - A blistering market led by value first users
3. Indian eGrocery business models - A unique assortment
4. eGrocery market trends - The pivotal factors
5. COVID-19 - Potential tipping point for eGrocery
6. JioMart - Disrupting the eGrocery space
Methodology
1. Primary Research Consumers, stakeholders and industry experts are interviewed to help us validate key trends and market estimations.
While the exact figures may vary for different reports, on average, the publisher conducts:
- ~1,000+ consumer surveys
- ~30+ IDIs (in-depth interviews) with stakeholders (consumers, suppliers, distributors and delivery executives, among others)
- ~25+ detailed discussions with industry experts Depending on the report in question, consumers and stakeholders are distributed across:
- City tiers (Metros, Tier 1, Tier 2, Tier 3 & Tier 4 cities)
- Income levels
- Genders
- Age groups
- Professions
- Internet usage pattern
- Geographies
2. Secondary Research Secondary includes analysis of databases available in public domain. Information sought is cross-referenced and aligned for soundness.
Note: In order to maintain confidentiality, results and analysis of the surveys and expert interviews are presented at level of overall scenario analysis and representation only.
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