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Quick commerce, characterised by ultra-fast delivery times of 10 to 30 minutes, has seen rapid growth in India. The sector, valued at $6.1 billion in 2024, is projected to reach $40 billion by 2030, reflecting a significant shift in consumer behaviour towards convenience and speed.

This trend is reshaping the grocery retail landscape, with nearly 46% of consumers reporting a cutback on purchases from traditional Kirana stores. Quick commerce platforms now account for a substantial share of grocery sales, drawing in users with promises of rapid, on-demand delivery.

Shifting Consumer Preferences

Consumer habits have evolved significantly, driven by the convenience offered by quick commerce platforms. The ability to place orders and receive groceries in under 30 minutes appeals to urban shoppers, leading to a rise in unplanned purchases. 75% of online grocery buyers have increased their unplanned purchases in the past six months, with an average order value often exceeding ₹400.

The appeal of quick commerce is rooted not only in speed but also in competitive pricing. These platforms streamline supply chains by reducing the number of intermediaries offering better prices compared to traditional retail outlets. This competitive edge has attracted a growing base of consumers who prioritise convenience and cost-efficiency.

Impact on Kirana Stores

Kirana shops, historically the backbone of the Indian grocery market, are now facing stiff competition from quick commerce platforms. The report indicates that 82% of consumers have shifted at least a quarter of their grocery spending away from Kirana stores. This shift poses a significant challenge to the traditional retail model, as quick commerce captures a larger market share.

Quick commerce is expected to capture $1.28 billion of Kirana sales by 2024, accounting for 21% of total sales on these platforms. As more consumers embrace the ease of online grocery shopping, Kirana stores may need to adapt their business models or risk losing market share.

Growth Outlook and Market Potential

The quick commerce sector is expected to grow by 74% in 2024, making it the fastest-growing channel in the retail space. It boasts a 48% compound annual growth rate (CAGR) forecasted through 2028, indicating sustained momentum. While initially focused on grocery and essential items, quick commerce platforms have diversified their offerings to include electronics, clothing, cosmetics, medicines, pet supplies, and more.

This expansion has contributed to the sector’s rapid adoption, appealing to consumer needs beyond groceries. As confidence in these platforms grows, more users opt for quick commerce, driving up average order values and further cementing its place in the retail ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.