The market size is expected to reach US$300 billion, and India's online grocery market has huge room for growth

Indian e-commerce giant Flipkart said on Tuesday it has expanded its grocery service to more than 50 cities in India and plans to increase it to 70 cities in the next six months. According to a statement released by Flipkart, Flipkart's grocery business has grown threefold in the past year .

Currently, Flipkart’s grocery business covers major cities in India including Kolkata, Pune, Ahmedabad, Jaipur, Chandigarh and Mysore.

Manish Kumar, head of grocery business at Flipkart , said: “In the past one year, we have witnessed a rise in demand for groceries in tier-II cities due to customers’ preference for contactless shopping from the comfort of their homes . We believe this trend will continue and will chart a course for the e-commerce industry going forward. ”

Grocery has become one of the fastest growing categories on Indian e-commerce platforms in recent years as demand for quality food and household products increases .

The grocery category covers categories including groceries and daily necessities. Flipkart's grocery business offers more than 7,000 grocery products in more than 200 categories on the platform , including fresh food, fast packaged food, cleaning and care products, household items, kitchen supplies, etc.

Among them, affected by the epidemic, in 2020, groceries and cleaning and care products (hand sanitizer, soap, etc.) were the grocery products with the fastest order growth on the platform.

Currently, India's online grocery market is worth less than $10 billion, but a recent report from consulting firm Redseer says that more than 50% of India's grocery retail space (nearly $570 billion) can be addressed by e-grocery platforms , which means that India's grocery e-commerce market is expected to grow to nearly $300 billion, with huge room for growth.

In order to seize the opportunity, the two e-commerce giants Flipkart and Amazon.in have opened grocery businesses and strengthened the platform's layout in the grocery category.

In addition, India's two most famous conglomerates, Reliance Industries and Tata Group, have also entered the market. The former successfully launched its own grocery e-commerce platform JioMart in 2020, while the latter is acquiring India's number one grocery e-commerce company BigBasket. At present, the related acquisition work is nearing completion.

The Indian online grocery market has a promising future. Sellers who are interested in the Indian market can pay more attention to the grocery category and make good plans.

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