India’s next online grocery boom targets value, not speed

India's next phase of online grocery growth will come from value-conscious shoppers in Tier-II and smaller towns, not from metro consumers chasing faster deliveries, according to a Redseer Strategy Consultants report. The report says Bharat households, which currently account for 31% of Indian households and are expected to reach 40% by 2030, prioritise affordability, assortment and familiar local brands over quick delivery. These households consume $625-675 billion annually, projected to cross $1 trillion by FY30, yet grocery shopping remains largely offline, with kiranas accounting for 91% of sales.

Redseer partner Kushal Bhatnagar told ET Online that the opportunity lies in shifting the grocery habits of the existing 250 million value-commerce shoppers, who already buy lifestyle products online but still buy groceries from kiranas. Quick commerce, which grew 120%+ YoY last financial year with 75% metro contribution, targets affluent households willing to pay for convenience. In contrast, value commerce, with 85%+ contribution from Tier-2 and beyond, grew 40% YoY.

At Inc42's D2C & Retail Summit, Veeba founder Viraj Bahl advised D2C brands to use quick commerce gains to expand general trade, noting that quick commerce contributes 8-10% of Veeba's revenue while kiranas account for over 70%. Liberty Shoes director Ayush Bansal said quick commerce has transformed shopping but many products still require offline touch, with consumers discovering on Instagram, comparing on ecommerce, trying in stores and buying on D2C sites.