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Online grocery market to grow annually at 62% between 2016-2022: Study

December 08, 2015

KOLKATA: India's online grocery market is estimated to grow at a compounded annual growth rate of 62% between 2016-2022, a latest study said.

The study, conducted by 6Wresearch, said the market for online grocery is currently at a nascent stage and primarily confined to tier one cities. It said attractive offers provided by online grocery players is wooing the consumers, while grocery and staple segment is contributing major revenue share followed by FMCG.

"Changing lifestyle coupled with long working hours has shifted purchasing trend from offline to online format. In India's online grocery market, youth population is playing very significant role for these online grocery item purchases," said Avishrant Mani, senior research analyst at 6Wresearch.

The study said Bengaluru is the key market for online grocery, followed by Mumbai and Delhi. It said the hyperlocal model is growing at faster rate as compared to pure-play model which requires heavy investments and warehouses pushing the overall operating cost. On the other hand, hyperlocal model saves cost and time of delivery due to support from local merchant.

Media Source: Economic Times

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