As consumer preferences shift towards the convenience of last-minute grocery deliveries, quick commerce companies are outpacing traditional retailers
As consumer preferences shift towards the convenience of last-minute grocery deliveries, quick commerce companies are outpacing traditional retailers, with 46 per cent of consumers surveyed reporting a cut in purchases from Kirana shops, a report has said.
The quick commerce market size is expected to reach USD 40 billion by 2030, a jump from USD 6.1 billion in 2024, according to the report by Datum Intelligence.
"Nearly half (46 per cent) of respondents report reduced spending at Kirana shops, indicating a shift in customer behavior towards quick commerce platforms," it noted.
Quick commerce refers to the delivery of consumer items in 10-30 minutes. Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes are among the top quick commerce platforms in India.
The quick commerce market is projected to capture approximately USD 1.28 billion of Kirana sales by 2024, accounting for 21 per cent of total sales on these platforms, the report further said.
"Quick commerce’s focus on speed and convenience aligns with consumers' needs for efficient, on-demand grocery shopping experiences plays a major role in the adoption of online grocery," it said.
The study said that around 75 per cent of online grocery buyers have increased their unplanned purchases in the past six months, with a majority of them spending over Rs 400 per order. With an average order value significantly higher than traditional stores, consumers are increasingly opting for the convenience and speed offered by these platforms, it said.
This shift is facilitated by the platforms' ability to provide competitive pricing by eliminating multiple intermediaries that traditional retail relies upon, the report observed.
In contrast, Kirana stores, which historically dominated the Indian grocery market, are now facing an existential threat. The report showed that over 82 per cent of consumers have shifted at least one-fourth of their grocery spending from Kirana stores to quick commerce platforms.
"Quick commerce has witnessed an unprecedented pace of adoption, significantly influencing consumer behaviours across the retail ecosystem.
"It is projected to experience a 74 per cent growth in 2024, positioning it as the fastest-growing channel during the 2023-28 forecast period with a 48 per cent compound annual growth rate (CAGR)," the report said.
Quick commerce, which began with the delivery of groceries and essential items, has now expanded to include a diverse range of products. This includes electronics, clothing, cosmetics, household goods, medicines, pet supplies, books, sporting equipment, and more.
An interesting finding from the study revealed that 75 per cent of online shoppers experienced a significant increase in unplanned purchases over the past six months.
"The increased confidence in receiving grocery items within 10 minutes through quick commerce platforms has led to a surge in unplanned purchases."
Conducted in October 2024, the study derived insights from a survey of 3,000 adults across 10 Indian cities, in-depth interviews with industry stakeholders and experts, kirana shop owners, market data, broker reports and media reports.