India's quick commerce sector is growing at an impressive 75-100% annually, far outpacing traditional retail. By 2025, it is expected to dominate India's USD 250 billion grocery market in key cities. With unique advantages in proximity, pricing, and variety, quick commerce is reshaping retail. Major FMCG companies and D2C brands thrive on these platforms, which accounted for nearly half of e-commerce sales in FY24. Leading players like Zomato and Blinkit are driving this transformative and accessible shopping revolution.
India's quick commerce sector is poised for extraordinary growth, with an anticipated year-on-year expansion of 75-100%, far outpacing the modest growth rates of traditional retail, according to a recent report by Bernstein. This dynamic segment is reshaping the retail landscape with its unique advantages in proximity, pricing, and product variety.
The report highlights, “Quick commerce is uniquely positioned across Proximity, Pricing & Selection & will continue to grow at 75-100 per cent YoY vs retail at low teens.” This surge is elevating quick commerce as the fastest-growing internet-based retail channel in the country. By 2025, it is expected to solidify its position as a dominant force in India's retail ecosystem.
India's top 40-50 cities, collectively representing a grocery market valued at approximately USD 250 billion, offer a significant growth opportunity for quick commerce platforms. The report notes, “2025 will see amplification of quick commerce vs other channels. Top 40 - 50 cities constitute approx. USD 250Bn of the overall grocery market.”
Leading consumer goods companies are increasingly recognizing the potential of quick commerce as a critical and rapidly expanding sales channel. Currently, e-commerce contributes 8-10% of revenue for major FMCG companies, and within this, quick commerce has gained remarkable traction. In FY24, quick commerce accounted for nearly half of all e-commerce sales, representing 6.8% of total sales.
The report also emphasizes the success of Direct-to-Consumer (D2C) brands on quick commerce platforms. Over 30% of the products offered on these platforms now come from D2C or emerging new-age brands. It states, “We expect Quick commerce to continue leapfrog other channels (retail, E-com) with growth led by new categories & Tier 2 expansion.”
Major players driving the quick commerce revolution include Zomato, Big Basket, Zepto, Blinkit, and Swiggy Instamart. Additionally, traditional e-commerce giants like Amazon and Flipkart are stepping into this space, further intensifying competition and innovation.
As quick commerce continues to evolve, it is set to redefine the future of retail in India. This model not only enhances convenience and accessibility for consumers but also provides brands with a faster, more efficient sales channel. With its rapid growth trajectory, quick commerce is undoubtedly becoming a cornerstone of modern retail in the country.
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