Online grocery market in India sees strong growth, but fresh produce purchases remain largely offline: PwC Report

NEW DELHI: The online grocery market in India is witnessing significant growth driven by quick delivery services, wide product variety, and convenient digital experiences, according to a report by PwC. However, a large section of consumers still prefer purchasing fresh produce and non-vegetarian grocery items through in-person or offline channels.

It stated, “the online grocery market is experiencing significant growth due to wide product variety, convenience, seamless digital payment integration……. Both urban dwellers and rest of India consumers prefer purchasing fresh produce and non-vegetarian grocery items through in-person or offline channels”.

The report noted that although online grocery remains a small segment of India’s overall grocery retail market, it is expanding rapidly due to several factors such as convenience, seamless digital payment integration, effective social media marketing, and quick delivery options.

Consumers today choose between offline and online shopping based on the urgency of their needs, the total purchase amount, and return policies. The report highlighted that offering quick delivery and removing minimum order requirements could further boost online purchases in this segment.

A key finding from the study revealed that 66 per cent of shoppers from the rest of India tried online platforms or brands for grocery shopping after seeing content on social media. This highlighted the growing influence of digital marketing and social media platforms in shaping consumer preferences and shopping behaviour.

The report also identified two distinct purchase patterns emerging across India, monthly bulk purchases and small-value emergency purchases. Among the major players, Flipkart emerged as the most preferred marketplace for grocery shopping among both urban dwellers and the rest of India consumers, with 32 per cent of respondents selecting it as their top choice.

Consumers preferred Flipkart for its convenient bulk purchase options, competitive pricing, diverse product selection, reliable delivery, and absence of minimum order requirements. Amazon ranked as the second most preferred marketplace for grocery shopping, while consumers also appreciated BigBasket, JioMart, and Swiggy Instamart for their quick delivery services and strong customer support.

Despite the growing adoption of online grocery platforms, both urban and the rest of India consumers continue to prefer buying fresh produce and non-vegetarian grocery items offline. This ongoing preference stems from concerns related to product quality, freshness, limited return policies, and a desire to support local businesses.

On the other hand, snacks, bathing products, and other daily essentials have become some of the top-selling categories on grocery apps. These items carry minimal risk of poor quality and benefit from the convenience of quick delivery and bulk ordering options, making them popular choices for online shoppers. (ANI)