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India’s quick commerce set to triple by 2027: report

India’s quick commerce grocery market is projected to triple by 2027, reaching 1.5 lakh crore rupee (US$17.5 billion) to 1.7 lakh crore rupee (US$19.8 billion), according to a report by Kearney India.

Growth is expanding beyond major cities to areas with populations over 500,000.

Consumers are drawn to the speed, convenience, and variety offered by quick commerce, with rising demand in categories like snacking, gifting, personal care, and household essentials.

Premium products are also gaining popularity.

The report, The Rise of Quick Commerce: Transforming India’s Retail, Consumer Behaviors, and Employment Dynamics, highlights the sector’s impact on employment.

It currently employs 6 lakh–7 lakh people, expected to rise to 11 lakh–13 lakh by 2027.

🔗 Source: Kearney


🧠 Food for thought

1️⃣ Quick commerce is accelerating India’s shift from unorganized to organized retail

India’s retail market has historically been dominated by unorganized retail, with 90% of the $780 billion sector consisting primarily of traditional Kirana stores 1.

Quick commerce is rapidly disrupting this dynamic, projected to capture 21% of total Kirana sales by 2024 2.

This shift aligns with the broader trend where organized retail is growing at 19% annually compared to just 11% for unorganized retail 1.

The expansion of quick commerce from metros to cities with populations over 5 lakhs (as mentioned in the Kearney report) will further drive this transformation of India’s retail landscape.

Dark stores, the fulfillment centers powering quick commerce, are becoming a new retail infrastructure layer, with players like Zepto already operating 200-250 such facilities across major urban areas 3.

2️⃣ Consumer economics are evolving beyond just convenience

The average order value (AOV) in quick commerce has doubled from ₹250 to ₹500, with market leader Blinkit achieving an industry-leading AOV of ₹625 3.

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