The report highlights that quick commerce is forecasted to grow by over 40 per cent annually until 2030
Highlighting the rise of quick commerce in India’s e-retail market over the last two years, a report has revealed that over two-thirds of all electronic grocery (e-grocery) orders and one-tenth of e-retail spending happened on quick commerce platforms in 2024.
Consultancy firm Bain and Company, in collaboration with Flipkart, stated in a report that quick commerce is forecasted to grow by over 40 per cent annually until 2030. This growth is fuelled by expansion across categories, geographies, and customer segments. With Flipkart Minutes, Myntra’s M-now, BigBasket’s BB Now, and Amazon’s Tez joining the race, the competition is getting intense in this space.
The country is witnessing a surge in the hyper-value commerce segment. Through the concept of offering a wide range of ultra-low price point assortments, hyper-value commerce platforms’ share of e-retail gross merchandise value (GMV) has surged over the last three years to reach 12 to 15 per cent. The report added that due to affordable product offerings, these players have gained traction with lower-middle-income consumers, especially in tier two and smaller cities.
Generation Z (gen Z) has been driving the growth of e-retail. Representing 40 per cent of India’s e-retail shoppers, the population born between 1997 and 2012 (gen Z) boasts 1.5 times the e-retail spend share on categories such as lifestyle, beauty, and electronics compared to other age groups, as highlighted by the report.
As far as the e-retail market is concerned, India’s e-retail market has scaled to around USD 60 billion in 2024. Notably, with over 270 million Indians shopping online in 2024, India has pipped the US to become the second-largest e-retail market in terms of online shoppers, the report added.
Primarily due to macroeconomic and consumption stress, the report noted that the e-retail market growth has slowed down to 10 per cent to 12 per cent in 2024 as compared to more than 20 per cent seen historically. Despite near-term macroeconomic headwinds, the long-term prospects remain strong. The e-retail market is expected to scale to USD 170 to USD 190 billion by 2030, growing at over 18 per cent annually.
One key aspect that the report highlighted was that nearly one in 10 retail dollars is projected to be spent on e-retail by 2030, fuelled by an uptick in discretionary spending as India’s gross domestic product (GDP) per capita crosses the crucial USD 3,500 to USD 4,000 threshold.
