Quick Commerce Platforms Capture 50% Kirana Sales in India, Projected to Reach ₹332,000 Crore by 2024
Mumbai, December 10, 2023 - Quick commerce platforms such as Blinkit, Swiggy Instamart, Zepto, and Flipkart Minutes have emerged as the dominant players in India's grocery market, capturing nearly 50% of Kirana sales, according to a recent survey by Datum Intelligence.
According to the report, the quick commerce market is expected to reach $1.28 billion (approximately ₹100,000 crore) in Kirana sales by 2024, accounting for 21% of total sales on these platforms. This significant growth is projected to make the Indian quick commerce market one of the fastest-growing in the world.
The survey revealed that consumers are increasingly shifting their grocery spending from traditional Kirana stores to quick commerce platforms, with over 46% reported reducing their purchases at Kirana shops and opting for last-minute grocery deliveries.
"The focus on speed and convenience by quick commerce platforms aligns with consumers' needs for efficient, on-demand grocery shopping experiences, which plays a major role in the adoption of online grocery," said the report.
Unplanned purchases have also increased significantly, with 75% of customers reported making more unplanned online grocery purchases in the past six months. Additionally, the average value of online grocery orders is higher than those made at traditional stores, highlighting consumers' preference for speed and convenience offered by quick commerce companies.
The study further observed that due to the rising popularity of quick commerce, Kirana stores are facing an existential threat, with over 82% of consumers having shifted at least one-fourth of their grocery spending from Kirana stores to quick commerce platforms.
"It is projected to experience a 74% growth in 2024, positioning it as the fastest-growing channel during the 2023-28 forecast period," said the report. The market's compound annual growth rate (CAGR) is expected to be 48%.
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