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Quick commerce bags kirana’s share of grocery shopping: Report

A Datum Intelligence study reveals a shift in consumer preferences toward quick commerce platforms, with 46% of respondents reporting a reduction in their purchases from traditional Kirana shops.

New Delhi: Consumers’ grocery shopping preferences are changing with quick commerce bagging a larger share of their grocery shopping budgets instead of kiranas, according to a recent study by Datum Intelligence, a Gurugram-based business consulting company. 

The report highlights the rapid growth of quick commerce platforms, driven by changing consumer behaviours, urbanization, and digital adoption. 

The study reveals a shift in consumer preferences toward quick commerce platforms, with 46% of respondents reporting a reduction in their purchases from traditional Kirana shops. These platforms, such as Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes, have capitalised on their promise of delivering essentials within 10–30 minutes, reshaping how groceries are purchased and consumed.

Quick commerce’s focus on streamlining supply chains and eliminating intermediaries has also contributed to competitive pricing. This, combined with the ability to deliver within minutes, has encouraged shoppers to shift a significant portion of their grocery spending online. Around 82% of respondents reported moving at least one-fourth of their grocery purchases away from Kirana stores to quick commerce platforms.

The study also notes that 75% of online grocery shoppers reported an increase in unplanned purchases over the past six months. This surge is driven by the confidence in receiving items promptly, with most consumers spending over Rs 400 per order.

The Datum study indicates that grocery purchases online account for 61% of consumer activity, just behind clothing (65%). The rising popularity of online grocery shopping aligns with consumers’ growing preference for convenience and speed, particularly in urban areas.

Rise of quick commerce

The quick commerce market size, currently valued at $6.1 billion in 2024, is projected to grow exponentially to $40 billion by 2030. This growth reflects a Compound Annual Growth Rate (CAGR) of 48% during the 2023–2028 period, marking it as the fastest-growing retail channel. By 2024, quick commerce platforms are expected to capture $1.28 billion of Kirana shop sales, accounting for 21% of their total sales.

While groceries remain the backbone of quick commerce, the platforms have diversified their offerings to include beauty and personal care products (purchased by 51% of respondents), electronics (47%), mobile phones (48%), and even books (36%). This diversification reflects the growing confidence of consumers in using these platforms for various everyday needs, further challenging traditional retail channels.

The report suggests that the quick commerce boom is fuelled by urban customers who increasingly value time and convenience over the personal relationships and credit facilities offered by traditional Kirana stores. Additionally, the presence of loyalty programs, such as Swiggy One and Zepto Pass, further incentivizes repeat purchases on quick commerce platforms.

Quick commerce’s rapid adoption can be attributed to its ability to combine speed, efficiency, and competitive pricing. While it initially focused on groceries and essentials, its expansion into non-traditional categories highlights its potential to redefine retail in India.

However, this growth also raises questions about sustainability, especially about maintaining delivery speeds, managing logistics costs, and retaining consumer trust. The challenge for quick commerce players will be to continue scaling operations while addressing these concerns.

Kirana shops, long considered the backbone of Indian retail, are now facing an existential challenge. Their reliance on conventional methods and inability to match the speed, convenience, and pricing offered by quick commerce platforms is pushing them toward decline.

The post Quick commerce bags kirana’s share of grocery shopping: Report appeared first on India Retailing.



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