India Grocery Market Size 2024-2028: Key Trends, Dynamics, and Key Players

The Indian grocery market is expected to grow by USD 310 billion, with a compound annual growth rate (CAGR) of 8.1% from 2023 to 2028. This market growth is primarily driven by the increasing demand for online grocery shopping, along with the rise in private-label goods and the expansion of omnichannel retailing.

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Market Segmentation

The market is divided into the following key segments:

Platform
- Offline
- Online
Product
- Food Grains
- Bread Bakery and Dairy Products
- Fruits and Vegetables
- Personal Care
- Others
Geography
- India

Market Dynamics

Drivers:

Rapid Growth in M-Commerce:
The widespread use of smartphones has led to a significant shift towards mobile-based grocery shopping. Major e-commerce players, including Amazon, are leveraging this trend by focusing on both e-commerce and m-commerce channels. As a result, online grocery shopping is becoming more accessible to consumers in urban areas.

Trends:

Demand for Functional Foods and Beverages:
Health-conscious consumers, particularly younger individuals aged 18-32, are driving the demand for functional foods and beverages. This trend is fueled by the increasing popularity of wellness and fitness lifestyles. Consumers are more willing to pay a premium for products that offer health benefits, such as reduced fat.

Challenges:

End-User Mixed Perception of Online Grocery Shopping:
Despite the convenience of online grocery shopping, there are concerns regarding product quality and delivery reliability. Many consumers still prefer in-store shopping to ensure freshness and satisfaction, particularly with food items. As a result, retailers must balance both traditional and online shopping experiences to address consumer preferences effectively.

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