Report says Online Grocery To Become $18bn Industry In India By 2024

CIOReviewIndia Team | Friday, 25 September 2020, 10:38 IST

egrocerySources say that the next big thing is the expansion of the online grocery, which is projected to grow above $18 billion by 2024.

A collaborated report by Bengaluru’s market consulting firm – RedSeer and Bigbasket’s Brand Intelligence says that during the COVID-19, people have shifted to eating organic-grown food, where eGrocery is witnessed 1.7 times growth in gross merchandise value (GMV) in June in 2020 compared to January.

The report mentions that online grocery will reach more than $3 billion in the remaining part of this year.

Hari Menon, Co-Founder, and CEO of BigBasket, said, "The industry has seen more than 70 percent ARR (annual recurring revenue) jumps in the last quarter across categories. This brings the opportunity to serve a larger set of customers, and some challenges with it.”

The report stated that people are more inclined towards comfort eating of noodles and cookies, immunity boosters like lemon and buying products like sanitizers, which grew after the pandemic, and the essentials maintained their strong position.

Demand for snacks and branded food products went up by 5 percent quarterly pre-COVID, though the growth observed in the June quarter was 75 percent. Snacks and branded foods, biscuits, and cookies were the largest selling products and grew the most in Q2.

Beverages attained 2 percent growth quarterly during pre-COVID, though it reached 50 percent in Q2 with a rocket speed.

Anil Kumar, Founder, and CEO of consulting firm RedSeer, said, “Personal Care grew by 5 percent quarterly pre-COVID but jumped to 24 percent in Q2 due to COVID. We have observed that traditional brands which pivoted quickly to be digitally ready brands have seen 2x+ jump in sales compared to offline brands. We are excited to have this opportunity to serve the ecosystem.”

There was 11 percent in Q2 growth in home utilities selling from a 6 percent quarterly pre-COVID period. Home utility products that sold the most were detergents and dishwash, which occupies the bottom position in the last quarter, as home utilities were not affected by the pandemic.

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