India’s quick commerce to grow up to 100% annually, surpassing traditional retail

India’s quick commerce sector is expected to grow at an annual rate of 75-100%, far outpacing the growth of traditional retail, which is projected to increase at a much slower pace, according to a report by Bernstein. The report highlights the sector’s competitive advantages in proximity, pricing, and product variety, which are driving its rapid expansion.

The report notes that quick commerce is growing faster than other internet-based retail channels and is set to become a dominant force by 2025. India’s top 40-50 cities, which together represent a grocery market worth around $250 billion, are expected to see a significant shift towards quick commerce.

Currently, e-commerce accounts for 8-10% of total revenue for major FMCG companies, with quick commerce making up nearly half of all e-commerce sales in the financial year 2024. The report highlights that leading consumer goods companies are increasingly recognising quick commerce as a crucial and fast-growing sales channel.

Direct-to-consumer (D2C) brands have particularly benefited from the rise of quick commerce, with over 30% of the offerings on these platforms coming from D2C or emerging brands. The report suggests that quick commerce will continue to expand beyond Tier 1 cities, driven by the introduction of new product categories and further expansion into Tier 2 markets.

Key players in India’s quick commerce sector include Zomato, Big Basket, Zepto, Blinkit, and Swiggy Instamart. Meanwhile, traditional e-commerce giants like Amazon and Flipkart are also making moves into the quick commerce space.

As the sector continues to evolve, quick commerce is expected to play a vital role in reshaping India’s retail landscape, providing consumers with greater convenience while offering brands a more efficient and dynamic sales channel.