From kiranas to clicks: how quick commerce is changing the game

India’s grocery sector is rapidly evolving, driven by digital adoption and changing consumer habits, with quick commerce emerging as a key growth driver, according to the Kearney report. About 87% of people in the metro cities now shop online, reflecting a significant shift in consumer behavior driven by the convenience and instant gratification offered by quick commerce.

Although quick commerce shifts 92–93% of sales from traditional channels, only 6–8% of its sales are truly incremental, boosting consumption and creating new jobs, especially in last-mile delivery. The quick commerce grocery market is projected to triple by 2027, with major players expanding rapidly. Brands are increasingly investing in quick commerce, which is set to coexist with other channels while reshaping retail strategies and employment patterns.

India’s grocery sector—including food and non-food FMCG, as well as fruits and vegetables—is rapidly evolving, driven by shifting consumer behavior and growing digital adoption. As a core component of the retail landscape, the industry is expected to grow at 8% annually and reach Rs 78 lakh crore by 2029. This transformation is fueling innovation across the retail ecosystem, with quick commerce emerging as a key catalyst.

Quick commerce is redefining how consumers shop, delivering speed and convenience, while offering retailers a scalable and increasingly viable path to profitability. Impulse-driven categories like snacking and confectionery have also seen a significant rise in adoption, with products such as munchies, chocolates, and cold beverages being bought more frequently. Likewise, the festive and gifting segments have experienced notable growth, driven by the convenience and speed of quick commerce, which meets the demand for last-minute purchases during special occasions.

However, a recent report by Kearney reveals that only 6–8% of sales on quick commerce platforms are truly incremental, with the majority of the growth coming at the expense of other retail channels—mainly modern trade and ecommerce, followed by local kirana stores. This shift occurs despite traditional supermarkets and ecommerce platforms offering steeper discounts—typically between 13–18%—compared to 6–9% on quick commerce and just 2–5% on kiranas or general trade.

Industry experts note that platforms like Zepto, Blinkit, and Swiggy Instamart are contributing little new or additional demand. 

Originally designed for urgent, last-minute purchases of groceries and small-ticket items, quick commerce has rapidly evolved into the fastest-growing sales channel, especially for premium product lines. Although still small in scale, it now contributes about 3–6% to the overall sales of most consumer goods companies in India, with its share in ecommerce doubling each year.

Before the arrival of quick commerce players, only about one-third of consumers in top metro cities used online platforms for daily shopping. That number has now surged to 87%, indicating a major shift driven by convenience and the promise of instant gratification. However, this shift isn’t uniform across all product categories.

Staples within the food segment have seen the most significant migration, contradicting the idea that quick commerce is primarily used for top-up purchases. Conversely, fresh produce has experienced a lower shift, as many consumers still prefer to personally select fruits and vegetables. Similarly, categories like personal care and electronics show limited uptake, largely due to the relatively narrow product selection available on quick commerce platforms in their early stages.

Looking ahead, Kearney projects that the quick commerce grocery market will triple in size between 2024 and 2027, reaching ₹1.5–1.7 lakh crore and expanding into all Indian towns with populations above 500,000. The market is currently dominated by Zepto, Zomato’s Blinkit, and Swiggy Instamart, although ecommerce giants like Flipkart and Amazon are also entering the space.

The rapid growth of quick commerce platforms has transformed employment patterns, generating a significant number of jobs—especially in last-mile delivery and operational functions. As per the report, while quick commerce largely draws demand from existing retail formats—modern trade, e-commerce, and general trade—accounting for 92–93% of its sales, its real economic impact stems from the 6–8% that is truly incremental.

This portion drives fresh consumer spending and creates new employment opportunities. In 2025, gig worker hiring in the quick commerce sector is expected to rise by 60% compared to 2024, fueled by growing demand for fast delivery. For every INR crore of monthly GMV, 15–18 new jobs are generated, with around five linked directly to incremental demand. These roles span last-mile delivery, warehouse operations, and other backend functions, with the highest employment elasticity in logistics and warehousing, where staffing scales closely with order volume.

The report also noted that brands are rapidly responding to changing consumer habits by adjusting their investments across multiple retail channels. Traditionally, most retail spending was directed toward e-commerce and modern trade. However, with quick commerce gaining popularity as a key shopping avenue, brands are now dedicating similar levels of investment to build visibility and presence in this rapidly growing segment.

The report concludes that quick commerce has rapidly become a crucial element of India’s retail ecosystem, reshaping consumer habits, brand investment strategies, and employment—particularly in urban centers. Although it has redirected sales from e-grocery, modern trade, and kirana stores, quick commerce also stimulates consumption growth, premiumization, and creates new jobs in last-mile logistics and fulfillment. To succeed, retailers must balance cost efficiency with consumer demand, with kiranas and modern trade enhancing operations to stay competitive. FMCG companies must make strategic investments to secure long-term profitability. Quick commerce is expected to grow further, coexisting with other channels while adapting to changing market dynamics and consumer preferences.