India’s quick commerce sector is set to grow by 75-100% year-on-year, far outpacing traditional retail, according to Bernstein. Driven by advantages in proximity, pricing, and product variety, quick commerce is rapidly gaining market share, especially in top cities with a US$ 250 billion grocery market.
India’s quick commerce sector is growing rapidly, with an expected year-on-year (YoY) increase of 75-100%, significantly higher than traditional retail, which is set to grow at a much slower rate, according to a report by Bernstein.
The report highlights that quick commerce holds a competitive edge due to its advantages in proximity, pricing, and product selection. It stated, “Quick commerce is uniquely positioned across Proximity, Pricing & Selection & will continue to grow at 75-100% YoY vs retail at low teens.”
Bernstein’s analysis reveals that quick commerce is advancing more swiftly than other internet-based retail channels in India. By 2025, the sector is poised to further solidify its position as a dominant force in the market.
The report underscores the vast potential of India’s grocery market, especially in the top 40-50 cities, which collectively represent a market size of approximately US$ 250 billion. Quick commerce is strategically positioned to capture a significant share of this market. It noted, “2025 will see amplification of quick commerce vs other channels. Top 40 – 50 cities constitute approx. US$ 250 billion of the overall grocery market.”
As consumer preferences shift towards faster and more convenient shopping experiences, leading consumer goods companies are increasingly recognizing quick commerce as a vital sales channel. E-commerce currently contributes around 8-10% of total revenues for major FMCG companies. Within this, quick commerce has emerged as a significant growth driver. In the financial year 2024, quick commerce accounted for nearly half of all e-commerce sales, which made up 6.8% of total FMCG sales.
The report also highlights the success of Direct-to-Consumer (D2C) brands on quick commerce platforms. Over 30% of product offerings on these platforms come from D2C or new-age brands, reflecting their growing presence and consumer appeal. Bernstein further emphasized, “We expect Quick commerce to continue leapfrog other channels (retail, E-com) with growth led by new categories & Tier 2 expansion.” This indicates that the sector’s future growth will not only stem from core markets but also from expanding into new product categories and smaller cities.
Key drivers of quick commerce growth
Proximity and Speed: The appeal of quick commerce lies in its ability to deliver products within minutes, catering to the growing demand instantly. With strategically placed dark stores and micro-fulfillment centers, platforms can efficiently handle last-mile delivery, meeting urgent consumer needs.
Competitive Pricing & Product Variety: Despite offering rapid delivery, quick commerce platforms maintain competitive pricing through optimized supply chains and strategic brand partnerships. Coupled with a wide selection of products—from groceries to lifestyle essentials—this variety keeps consumers engaged.
Tier 2 City Expansion: Beyond metro cities, quick commerce is eyeing growth in Tier 2 markets, where rising digital adoption and changing consumer habits create new opportunities. Expanding into these regions allows platforms to tap into underserved markets and broaden their customer base.
India’s quick commerce sector is led by players like Zomato, Big Basket, Zepto, Blinkit, and Swiggy Instamart. E-commerce giants Amazon and Flipkart are also entering the segment, recognizing its high growth potential. As quick commerce continues to evolve, it is expected to play a transformative role in India’s retail landscape, offering consumers unmatched convenience while providing brands with faster and more efficient sales channels.
