Quick Commerce Booms In India: Growth Expected To Hit 75-100 Per Cent YoY, Far Outpacing Traditional Retail, Says Bernstein Report

India’s quick commerce sector is projected to experience growth of 75-100 per cent year-on-year, significantly surpassing the modest expansion of traditional retail, which is expected to grow at a much lower rate, according to a Bernstein report, reported The Economic Times.

The report highlights quick commerce’s strategic advantages in proximity, pricing, and product selection, making it an increasingly preferred channel for both consumers and brands. 

"Quick commerce is uniquely positioned across Proximity, Pricing & Selection & will continue to grow at 75-100 per cent YoY vs retail at low teens," the report was quoted as saying by The Economic Times.

By 2025, quick commerce is expected to further solidify its position as a dominant force in India’s retail landscape.

The top 40-50 cities in India, which collectively represent a grocery market worth $250 billion, are likely to drive a substantial share of this growth.

"2025 will see amplification of quick commerce vs other channels. Top 40-50 cities constitute approx. $250Bn of the overall grocery market," the report added.

With leading consumer goods companies increasingly leveraging quick commerce, it has now emerged as an essential and fast-growing sales channel. 

E-commerce currently contributes 8-10 per cent of total revenue for major FMCG brands, and within this segment, quick commerce has gained remarkable traction.

In FY24, quick commerce accounted for nearly half of all e-commerce sales, which itself comprised 6.8 per cent of total retail sales. 

Additionally, Direct-to-Consumer (D2C) brands have found strong growth on quick commerce platforms, with over 30 per cent of offerings on these platforms coming from D2C and new-age brands.

The report also noted, "We expect Quick commerce to continue leapfrog other channels (retail, E-com) with growth led by new categories & Tier 2 expansion." 

As a result, companies like Zomato, Big Basket, Zepto, Blinkit, and Swiggy Instamart continue to dominate the segment, while Amazon and Flipkart are also expanding their presence in the quick commerce space.

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