Quick commerce accounts for 70-75% of total e-grocery orders in India, up from 35% in 2022

Quick commerce is rapidly reshaping the online grocery market, now accounting for 70%-75% of total e-grocery orders, up from approximately 35% in 2022, according to a recent Bain & Company report. This surge is driven by strong execution, rising incomes, an expanded product range, and increasing consumer demand for convenience. The competitive landscape is also evolving, with major players like Flipkart Minutes, Nykaa, and Myntra entering the market alongside new entrants like Swish and Slikk. Quick commerce platforms are enhancing logistics to meet the growing demand by setting up 'back' dark stores in high-demand areas, which stock 3,000-4,000 premium high-value items and are connected to multiple ‘forward’ dark stores for efficient delivery.   

The segment's profitability is rising due to several key factors. Companies have seen a 40% increase in average order value (AOV) between FY23 and FY25 by expanding product categories and raising free delivery thresholds. A higher share of high-margin products, particularly direct-to-consumer (D2C) offerings and new revenue streams like advertising, have improved gross margins by 3-4%. Additionally, operational efficiency has improved, with more dark stores processing over 1,000 orders daily, leading to better cost management. Logistical densification has further reduced per-shipment costs by 25% in 2024 compared to 2023. With these advancements, Quick Commerce is set to continue its robust growth trajectory, solidifying its dominance in the e-grocery sector. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.