The rise of Quick Commerce (Q-commerce) in India is fundamentally transforming the food delivery landscape by prioritizing rapid delivery of small orders, particularly groceries, to urban customers within an hour. This shift from traditional e-commerce to an on-demand model gained momentum during the COVID-19 pandemic, which redefined consumer expectations toward convenience and speed. As the Q-commerce market continues to expand, it is projected to achieve remarkable growth, reaching an estimated market size of US$ 9.95 billion by 2029.
The increasing urbanization, rising disposable incomes, and changing consumer behaviors are key factors driving this growth. Major players like Blinkit, Zepto, and Swiggy Instamart are leading the charge, promising impressive delivery times and adapting to evolving consumer needs. As they carve out their space in an increasingly competitive market, quick commerce is set to redefine how consumers access daily essentials.
Quick Commerce is a new business model that focusses on delivering small orders rapidly, often groceries, to urban customers within less than an hour. This shift from traditional e-commerce emerged during the COVID-19 pandemic, aiming for convenience and speed over cost. The model uses dark stores and small warehouses strategically located in urban areas, with advanced logistics, route optimization algorithms, and real-time inventory tracking to ensure high-demand items are available quickly.
The Q-commerce market in India is poised for remarkable growth. The market size is estimated at US$ 3.34 billion in 2024, expected to reach US$ 9.95 billion by 2029, growing at a CAGR of over 24.3% during the period. The rapid adoption of quick commerce services can largely be attributed to the increasing urbanization and changing consumer preferences, especially among Millennials and Gen Z, who dominate the market.
A recent Bernstein survey shows that 64% of respondents prefer food delivery at least once a week, with 60% of Millennials aged 18-25 preferring Q-commerce platforms over traditional shopping methods. The remaining 12% visit mom-and-pop stores, 10% use slotted delivery platforms, and 5% use modern retailers.
The Indian online food delivery market, valued at approximately US$ 5.30 billion in 2022, is projected to grow significantly to US$ 29.33 billion by 2028, with an impressive CAGR of 33% during the forecast period, according to Renub Research. This growth is driven by the increasing demand for ease and convenience in a fast-paced world, where consumers now see ordering quality food via apps as a necessity rather than a luxury.
According to Francis Gabriel Godad, Consumer Business Development Manager, GlobalData India, “The Indian food delivery space is highly competitive, with Swiggy and Zomato dominating consumers’ minds. These established players have strong partnerships with restaurants and cloud kitchens and attract consumers with regular discounts and promotions. The 10-minute delivery to help these players rapidly penetrate in the Indian market.”
Quick commerce is primarily dominated by the top 3 platforms, Blinkit (formerly Grofers) often guarantees delivery within 10-20 minutes, becoming one of the pioneers in the market, Zepto (delivery within 10 minutes) and Swiggy Instamart (delivery within 15-30 minutes), which have tailored their offerings to deliver food and essentials with a promise of speed and efficiency.
In the quick commerce sector, grocery remained the leading category, with 44% of customers primarily using the service for grocery purchases. Home and cleaning supplies followed at 20%, while beauty and personal care accounted for 16%. Newer categories such as apparel, electronics, and books made up smaller portions, with 2%, 4%, and 1%, respectively, according to the report.
The market is becoming highly competitive, as major companies like Amazon (‘Amazon Fresh’) and Flipkart (with services called ‘Minutes’) are also seeking to capitalise on its rapid growth. With all participants eager to secure their portion of the expanding market, the competition is intensifying.
India’s quick commerce growth is driven by the need for convenience and speed, particularly among urban consumers like Millennials and Gen Z, who prefer instant delivery of groceries and essentials, highlighting the trend towards immediate gratification.
Urbanisation: Rapid urbanisation has led to a surge in quick commerce as people adopt fast-paced lifestyles and require efficient shopping solutions. Platforms cater to this demographic by offering fast delivery options.
Technological advancements: Technology innovations, such as AI, machine learning, and IoT, are crucial for quick commerce platforms. These technologies help in optimizing supply chains, predicting demand, and enhancing delivery efficiency.
Micro-fulfilment centers: The use of micro-fulfilment centers allows for quicker order processing and delivery times, which is critical in meeting consumer expectations for rapid fulfilment.
Increased internet and smartphone penetration: India’s growing internet user base and affordable smartphone availability are driving quick commerce growth, with over 52% of the population active online as of early 2024.
Emerging startups and competition: Startups like Zepto, Blinkit, and Dunzo are expanding their market presence, attracting significant investments to improve delivery services and technology infrastructure.
The future of quick commerce in the food sector in India looks exceptionally promising, with substantial growth potential on the horizon. As quick commerce adapts to modern consumer preferences for speed and convenience, these platforms are expected to play an increasingly integral role in the daily lives of urban customers. The ongoing expansion of smartphone penetration beyond metropolitan areas into Tier 2 and Tier 3 cities presents untapped consumer bases that can be engaged through tailored quick commerce services.
Investments in advanced technologies such as artificial intelligence (AI), machine learning, and the Internet of Things (IoT) will remain crucial for these companies as they seek to optimize supply chains, enhance delivery efficiency, and improve customer experiences.
As successful players like Blinkit, Swiggy Instamart, and Zepto continue to innovate, the focus will be on maintaining high standards in logistics, packaging, and food quality to ensure sustained growth. Ultimately, the evolution of quick commerce is set to reshape the Indian food delivery landscape by aligning with the pressing need for instant gratification, establishing itself as a key player in the country’s retail ecosystem.
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How will Indusfood benefit the quick commerce industry in India?
Indusfood will play a pivotal role in advancing the quick commerce industry by connecting leading platforms like Blinkit, Zepto, and Swiggy Instamart with premium suppliers and manufacturers. This top food trade show provides opportunities to explore cutting-edge innovations in logistics, packaging, and supply chain management, essential for enhancing rapid delivery services.
By facilitating networking and showcasing the latest trends in food delivery and technology, Indusfood helps quick commerce companies improve efficiency and meet growing consumer demand for faster, high-quality service.
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