Quick Commerce sale in India surge by 280 per cent over two years: Report
Sep 28, 2024
New Delhi [India], September 28 : India's quick commerce industry has witnessed remarkable growth, with sales surging by more than 280 per cent over the last two years, according to a report by financial services firm Chryseum.
The report highlighted that the Gross Merchandise Value (GMV) of quick commerce in India increased from USD 0.5 billion in FY22 to a staggering USD 3.3 billion in FY24, which is a 280 per cent increase.
Quick commerce, which refers to the rapid delivery of small orders within a short time frame, is growing at a much faster pace than traditional e-commerce.
The report noted that while India's e-commerce sector is registering an annual growth rate of 14 per cent, quick commerce has expanded at an impressive 73 per cent annual growth rate during FY 2023-24. This highlights the significant shift in consumer behavior towards faster and more convenient delivery options.
The quick commerce market in India is currently valued at USD 3.34 billion in 2024 and is projected to reach USD 9.95 billion by 2029, growing at a compound annual growth rate (CAGR) of more than 4.5 per cent over the forecast period (2024-2029).
"The Quick Commerce Industry in India Market size is estimated at USD 3.34 billion in 2024, and is expected to reach USD 9.95 billion by 2029" said the report.
Despite this rapid growth, the sector remains relatively untapped, with a penetration rate of only 7 per cent of the total addressable market, which is valued at USD 45 billion. This indicates a significant opportunity for further expansion, with quick commerce already surpassing the market size of food delivery.
The report also mentioned that to capitalize on this potential, quick commerce platforms are increasingly partnering with manufacturers for direct sourcing, bypassing traditional distributor networks. This strategy enables platforms to streamline operations, reduce costs, and offer more competitive pricing to consumers.
"Quick Commerce platforms are partnering with manufacturers for direct sourcing, to bypass the traditional distributor network" the report added.
Furthermore, the tech infrastructure of quick commerce platforms is designed to ensure continuous improvements in operational processes, enhancing agility and speed across the value chain. These innovations are helping quick commerce platforms to deliver faster and more efficiently, meeting the growing demand for instant deliveries in India.
As the industry continues to evolve, experts predict that quick commerce will play an increasingly important role in India's retail landscape.
