BackIndia's quick commerce market set to hit $5.5 billion by 2025
Quick commerce market will grow 15 times its current size and leading other markets, including China, in terms of customer adoption
PremiumNew Delhi: Quick commerce market in India is set to touch $5.5 billion in market size by 2025, growing 15 times its current size and leading other markets, including China, in terms of customer adoption, management consulting firm RedSeer said in a note on Thursday.
Quick commerce covers companies that process speedy deliveries of daily items. Companies typically set up dark stores or partner with local grocery stores to service orders in a short span of time. The sector has seen the entry of new firms and has also witnessed existing players such as Zepto, Blinkit (formerly known as Grofers), as well as Swiggy Instamart ramp up supplies.
The total addressable market for quick commerce in India is estimated at $45 billion, with large metros and tier 1 cities driving demand on the back of mid-high-income households.
Quick commerce is becoming one of the fastest growing e-commerce models, RedSeer said. The sector is also altering consumer purchase behavior, it added. Over the last two years, quick commerce has seen a significant adoption in markets such as Bangalore, Chennai, and New Delhi.
“Quick commerce is becoming the next major segment as players realize the massive potential it has. Emerging as one of the fastest growing e-commerce models, quick commerce is fundamentally changing consumer purchase behavior and the grocery retail market on the whole by providing faster delivery options (in as little as ten minutes) as well as a more convenience-driven shopping experience," RedSeer said in its note.
This form of commerce also boasts of significantly higher NPS or net promoter score. That’s because quick commerce platforms provide a faster shopping experience. They load online shopping carts faster, have fewer steps required to buy products, and provide a better shopping cart experience overall. As a result, quick commerce gives people exactly what they want, when they want it, without forcing them to wait days or weeks for delivery, the note added.
Convenience and speed are likely to draw customers to this format going forward.
“A large pie is at stake—a $45 billion total addressable market indicates very large growth potential. The growing online population and an increasing preference for online shopping over brick-and-mortar shopping is enabling this market to grow rapidly," said Abhishek Gupta, engagement manager, RedSeer.
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