India's grocery market is expected to reach $850 billion by 2025

During the epidemic, all industries suffered a considerable impact, but the grocery market went against the current!

Grocery accounted for 66.5% of total retail spending in India in 2019 , with the retail market value exceeding $600 billion. With the increase in the number of online retailers , the Indian e-grocery market grew at a rate of more than 70 % last year.

Grocery retail sales in India have always been significantly higher than those in the United States , the United Kingdom , and China. Basic products such as non-meat , fresh produce, and staples account for almost 80% of grocery spending in India. In 2020, the industry took a huge hit due to supply chain disruptions and reduced consumption levels , with the entire grocery market falling by 5%.

Although the epidemic has affected many industries, groceries are an essential category in people's daily lives . Therefore , even in the epidemic, groceries are the retail category that is least affected. The company expects the compound annual growth rate of the grocery market to remain at around 8% , and predicts that by 2025, the size of the grocery market will exceed US$850 billion.

In the past few years, the e-grocery market has shown good development prospects with innovative business models . In 2019, the total transaction volume of the industry reached 1.9 billion US dollars, with a compound annual growth rate of 60%. This rapid growth is inseparable from certain aspects.

In 2020, Internet penetration increased rapidly , with approximately 670 million users having access to the Internet, of which more than 400 million actively used Internet platforms . At the same time, RedSeer estimates that 75% of active Internet users ( approximately 300 million people) shopped online and used electronic services last year .

The report shows that 154 million households in India made online purchases in 2020. Driven by the growing internet penetration , the number of online shopping households is likely to reach 233 million by 2025.

Overall, the outbreak has boosted the Indian grocery market. At present, the outbreak has not yet ended, and many Indian residents have begun to choose to shop at home and purchase grocery products through various e-commerce websites. Online groceries will also be accepted by more and more Indian residents.

India

groceries