Quick Commerce Captures Nearly Half of Kirana Sales as Market Expected to Reach USD 40 Billion by 2030

As consumer preferences shift towards the convenience of last-minute grocery deliveries, quick commerce companies are outpacing traditional retailers. A report indicates that 46% of consumers have reduced purchases from Kirana shops. The quick commerce market is expected to grow from USD 6.1 billion in 2024 to USD 40 billion by 2030, according to Datum Intelligence.

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Quick commerce platforms like Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes are leading this trend in India. These platforms focus on delivering consumer items within 10-30 minutes, meeting the demand for efficient, on-demand grocery shopping experiences. This aligns with consumer needs for speed and convenience.

Growth and Market Impact

The quick commerce market is projected to capture around USD 1.28 billion of Kirana sales by 2024, making up 21% of total sales on these platforms. This shift is facilitated by competitive pricing achieved by eliminating intermediaries that traditional retail relies upon. As a result, Kirana stores face an existential threat.

Quick commerce has seen rapid adoption, significantly influencing consumer behaviours across the retail ecosystem. It is expected to grow by 74% in 2024, making it the fastest-growing channel during the 2023-28 forecast period with a compound annual growth rate (CAGR) of 48%.

Consumer Behaviour and Spending Patterns

The study found that around 75% of online grocery buyers have increased their unplanned purchases in the past six months, with most spending over Rs 400 per order. The average order value on these platforms is higher than traditional stores, highlighting the appeal of convenience and speed.

This increase in unplanned purchases is driven by confidence in receiving grocery items within minutes through quick commerce platforms. The ability to deliver a diverse range of products beyond groceries has also contributed to this trend.

Diverse Product Offerings

Quick commerce has expanded beyond groceries and essentials to include electronics, clothing, cosmetics, household goods, medicines, pet supplies, books, sporting equipment, and more. This diversification has attracted a broader customer base seeking various products quickly.

The study conducted in October 2024 gathered insights from a survey of 3,000 adults across ten Indian cities. It included in-depth interviews with industry stakeholders and experts, Kirana shop owners, market data, broker reports, and media reports.

The findings reveal that over 82% of consumers have shifted at least one-fourth of their grocery spending from Kirana stores to quick commerce platforms. This shift highlights the growing preference for online shopping due to its speed and convenience.