India’s quick commerce market to hit $5.5b in value by 2025: report

India’s quick commerce market is set to grow 15x by 2025 to hit a market size of nearly US$5.5 billion, according to a report from management consulting firm RedSeer.

Image credit: Timmy Loen

According to the report, India has outdone several global markets – including China – in quick commerce adoption.

Companies operating in this segment also report “significantly higher” net promoter scores (NPS) than e-grocery incumbents, signaling that quick commerce customers are more likely to recommend these services to others.

The surge in NPS comes may be because quick commerce firms load online shopping carts faster and have fewer steps required to buy products.

Currently, the total addressable market for quick commerce in India stands at US$45 billion. Metro and Tier 1 cities – especially mid-to-high-income households – in the country are driving this market.

See also: Will India’s 10-minute quick commerce model last?

“India has laid the foundation for a well-positioned market for quick commerce adoption,” said Abhishek Gupta, engagement manager at RedSeer. “The growing online population and an increasing preference for online shopping over brick-and-mortar shopping is enabling this market to grow rapidly.”

The report noted that quick commerce is becoming the “next major segment,” and is changing consumer behavior and the grocery retail market on the whole by providing a more convenience-driven shopping experiences.