Quick commerce sprints ahead but still a small slice for FMCG giants

Quick commerce has experienced substantial growth for FMCG companies in India, with sales increasing by 50-100% in FY25. While it still represents a modest 2-4% of overall sales for major players like Hindustan Unilever (HUL) and Britannia, the channel's expansion into new locations and better margins due to premium product sales are noteworthy. Six of the largest companies—HUL, Britannia, AWL Agri-Business, Dabur, Tata Consumer Products, and Marico—posted cumulative quick commerce sales of over Rs. 4,400 crore (US$ 515 million) in FY25. For HUL, quick commerce accounted for 2% of business, translating to Rs. 1,214 crore (US$ 142 million) in FY25. For Britannia, it was about 4%, i.e., Rs. 675 crore (US$ 79.03 million), 7% of Tata Consumer Products' domestic sales Rs. 900 crore (US$ 105 million), and 3% for Marico Rs. 244 crore (US$ 28.57 million). Company and industry executives said it accounted for 4% at Dabur Rs. 500 crore (US$ 58.54 million). Unlisted Parle Products also had a 4% share from quick commerce.
Quick commerce sales led by Blinkit, Swiggy Instamart, Zepto, and BigBasket have grown 50-100% YoY for most large FMCG companies. The platform is rapidly expanding into new locations, making life simpler for consumers by offering ease of buying at no extra cost and price comparison of the full range, which is not possible with next-door grocers. Companies such as HUL and AWL Agri-Business noted in their earnings that margins are better in e-commerce and, more specifically, quick commerce due to the higher share of premium products sold through these platforms. However, there might be an increased cost on sales promotion to ensure product features are high up on the list during searches on the quick commerce apps. Quick commerce has been gaining share in the top eight to 10 cities at the cost of general trade and modern retail, according to companies and the latest data from researcher NielsenIQ.

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