As people in India are switching to smartphones to make online purchases, the ecommerce sector has witnessed a steady growth in 2018. The country’s ecommerce industry is expected to exceed USD 100 billion by 2020. This fact is fueled by the food and grocery segment.
The report made by CRISIL - a rating and research agency - suggests that the online grocery business is set to expand at a compound annual growth rate of over 65% between fiscal 2017 and 2020. Also, grocery-related revenue is expected to almost quadruple to around USD 1.5 billion over these three years.
A startup retailer called BigBasket along with Grofers, a grocery delivery company, and Amazon are leading participants in the online grocery market in India. Although ecommerce in India initially focused on electronics and apparel, groceries ecommerce is growing as people buy processed foods, grains, and cleaning supplies at least monthly if not weekly.
At the same time, Indian ecommerce Flipkart unveiled its grocery segment in 2017. The Flipkart-Walmart deal is set to redraw the online grocery sector map in the coming years.
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