EGrocery market set to touch $24 bn by 2025

Driven by lowpriced grocery shoppers, the overall eGrocery market is projected to touch $24 billion (in gross merchandise value) by 2025, of which 55 per cent will be contributed by the value-first households, a new report forecast on Thursday.

The ‘value-first’ eGrocery segment is projected to grow at 53 per cent CAGR over the next five years, even faster than the eGrocery market which itself is forecast to grow at 48 per cent CAGR, according to the report by homegrown consulting firm RedSeer.

The value-first segment refers to the households for whom, affordability is the key pain point and hence, buying low-priced grocery is of the utmost importance.

“Accounting for almost two-third of the 130 million eGrocery addressable households, value-first households account for a large opportunity in the grocery space, but are quite different in the way they go about purchasing groceries,” said Kushal Bhatnagar, Engagement Manager, RedSeer.

The eGrocery platforms penetrate less than 1 per cent of the grocery space in India, despite the significant Covid-19 boost that the sector received last year.

As per RedSeer’s estimates, over 50 per cent of the $570 bn grocery retail space in India is addressable by eGrocery platforms. “Of this, ‘value-first’ households account for a significant 61 per cent portion, with metro and tier 1 markets covering more than 40 per cent of this value-first opportunity,” it mentioned.