Quick commerce captures two-thirds of e-grocery orders in 2024: Report

New Delhi, Mar 27 (PTI) More than two-thirds of all e-grocery orders and one-tenth of e-retail spends happened on quick commerce platforms in 2024, underlining how QCom - with its promise of under 30 minute delivery - is "revolutionising" the way consumers buy in India, according to a report by Flipkart and Bain and Company.

Q-commerce is slated to grow at over 40 per cent annually through 2030, fuelled by expansion across categories, geographies, and customer segments, it said.

"The dramatic rise of quick commerce (delivery in less than 30 minutes) has been one of the most defining hallmarks of India's e-retail market over the last two years," the report said.

In 2024, more than two-thirds of all e-grocery orders and one-tenth of e-retail spend happened on q-commerce platforms.

"Q-commerce is revolutionising how consumers buy in India, with over two-thirds of all e-grocery orders and a tenth of overall e-retail dollars spent on these platforms," it said.

Notably, Indian q-commerce players have bucked global trends and scaled profitably.

"India's unique structural advantages, including high population density and close access to a network of low-rent dark stores, have enabled this growth," it observed.

Q-commerce has since attracted multiple players, which has made the consumer value proposition richer.

While quick commerce began with groceries, 15-20 per cent of its gross merchandise value or GMV now comes from categories such as general merchandise, mobile phones, electronics, and apparel.

Expansion beyond major cities has also fueled growth, though the top six metros still account for the lion's share of GMV.

According to the report, the Q-commerce players have improved unit economics by increasing order values, lowering supply chain costs, and enhancing gross margins (via direct sourcing from producers and farmers, and deploying monetisation levers such as advertising and platform fees).

"However, to sustain profitable growth, companies must adapt their business models for markets beyond major metros, manage rising competition, and optimise supply chains as the market evolves into a two-speed proposition' offering select products in under 15 minutes and a wider assortment within an hour," it suggested.

The Flipkart-Bain report titled 'How India shops online 2025' said the country has become a retail powerhouse over the last decade, ascending to the third largest retail market globally in 2024.

The Indian e-retail market has surged to almost USD 60 billion in gross merchandise value (GMV), boasting the world's second-largest online shopper base.

The stress in private consumption has, however, pulled down e-retail growth in 2024 to 10-12 per cent from historical highs of 20 per cent, but a rebound is on the anvil, from festive period of 2025, and e-retail space is seen surpassing 18 per cent growth over the next six years, it forecast.

"Long-term market fundamentals remain robust, with e-retail projected to exceed 18 per cent growth over the next six years, reaching an estimated USD 170-USD 190 billion in GMV, with nearly 1 in 10 retail dollars spent on e-retail by 2030," it said. PTI