Indian e-grocery expected to reach $96 billion in next decade

According to Euromonitor data , India's e-commerce market grew 13 times to $41 billion in the 2014-2021 fiscal year, with a penetration rate of 6.5% . India 's e - retail market is expected to grow sevenfold to $300 billion in the next decade .

The next phase of expansion will be led by e-grocery stores and smaller towns, JP Morgan analysts said in a note.

According to a report by JP Morgan , India’s e-commerce penetration rate is at the lower end of emerging markets and developed countries , which provides unlimited potential for rapid growth . Since most consumers come from first-tier markets, e-commerce development in second- and third-tier cities is extremely slow .

The e-grocery segment could be another area that will fuel its growth. Grocery is the largest category in the country’s retail market, reaching $410 billion in 2020 , and has the lowest online penetration at just 0.9%. Analysts say the low penetration also provides a platform for the sector to grow over the next decade .

The company expects e- grocery to grow 28 times to $96 billion over the next decade as consumers are unable to leave their homes due to lockdown restrictions , leading to an explosion in India’s online grocery market.

E-commerce giant Amazon India said a large section of small-town retail customers turned to online marketplaces during the second wave of the pandemic .

"In the last 15 to 18 months, we have seen a lot of customers moving online , not just from tier-I and tier-II cities , but also from small towns . Today, 65% of customer orders and more than 85% of new customers on Amazon in India come from tier-II and below regions, " said Akshay Sahi, director, Amazon India .

Amazon is working to help small and medium-sized businesses recover from the economic turmoil caused by the second wave of the epidemic and provide assistance to thousands of sellers, manufacturers , brands , local stores , etc.

During this period, Amazon's platform saw a significant increase in demand for products such as daily necessities, laptops, mobile phones, smart devices, headphones, furniture, consumer electronics and clothing .

India

E-commerce