India's Quick Commerce Revolution: Beyond Groceries and Into the Future

India's quick commerce sector is set for substantial growth by 2025, expanding beyond groceries into new categories and cities, driven by a 75% year-on-year increase. It’s anticipated to disrupt traditional retail with its advantages in proximity, pricing, and selection, reshaping how Indians access diverse products.

India's quick commerce sector is on the brink of a significant transformation, with predictions suggesting a notable expansion by 2025. According to a Bernstein report, this burgeoning industry is expected to outpace traditional retail, achieving a remarkable 75% year-on-year growth as it ventures beyond groceries into various new categories and cities.

The report highlights the role of Tier-2 and smaller cities in embracing this model, which is forecasted to enhance quick commerce's prominence. Among the most potent factors driving this momentum are the model's ability to hyper-localize services and deliver diverse products within a 3-kilometer radius. This approach positions quick commerce as a formidable disruptor in India's $250 billion grocery market.

Consumer goods companies have noted the rapid ascent of this sector, with many FMCG brands seeing an impressive growth rate exceeding 20% in online sales through quick commerce platforms. Direct-to-consumer brands, leveraging these platforms, have experienced exponential growth and are increasingly occupying a significant portion of the market share, with platforms hosting more than 30% of their brand mix from D2C and new-age brands.

(With inputs from agencies.)