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:
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Platform
-
Product
- Food Grains
- Bread Bakery and Dairy Products
- Fruits and Vegetables
- Personal Care
- Others
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Geography
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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Key Players
The major players in the India grocery market include:
- Amazon.com Inc.
- Avenue Supermarts Ltd.
- B L Agro Industries Ltd.
- Blink Commerce Pvt. Ltd.
- Brisam Retail Pvt. Ltd.
- Dookan Technologies s.r.o
- Dunzo Digital Pvt. Ltd.
- Flora foods
- FRESHTOHOME FOODS Pvt. Ltd.
- GFOI retail Pvt. Ltd.
- Heritage Foods Ltd.
- Innovative Retail Concepts Pvt. Ltd.
- One97 Communications Ltd.
- Reliance Industries Ltd.
- RP Sanjiv Goenka Group
- Satvika Bio Foods India Pvt. Ltd.
- SPAR Group Inc.
- Tata Sons Pvt. Ltd
- Walmart Inc.
- Zepto