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India's quick commerce sector is expected to expand beyond groceries into new categories and cities in 2025 as Tier-2 and smaller cities embrace this model, says a report by Bernstein.
The report also noted that the industry is estimated to witness a 75 per cent or more year-on-year (YoY) growth, outpacing traditional retail, which is projected to grow in the low teens. It said, "2025 will see amplification of Quick commerce as new categories (beyond Grocery) & new cities (Tier2+) drive stronger growth. We estimate 75 per cent per cent YoY growth in QC driving share gains." According to industry estimates, the report noted that the top 40-50 cities in India constitute a USD 250 billion grocery market. Quick commerce, with its unique advantages of proximity, competitive pricing, and wide selection, is emerging as a disruptive force within this space. The ability to hyper-localize services, offer diverse products, and deliver within a 3-kilometer radius is driving its popularity among consumers. It also noted that consumer goods companies have identified quick commerce as the fastest-growing platform among all retail channels. Currently, e-commerce contributes around 8 per cent-10 per cent to the revenue mix of leading FMCG firms. Within this, quick commerce is making significant inroads, becoming a preferred channel for both legacy and new-age brands. The report said, "D2C brands have seen exponential growth on quick commerce platforms. Platforms now keep a 30 per cent+ brand mix of D2C/new age brands." Direct-to-consumer (D2C) brands, in particular, are thriving on quick commerce platforms. Many platforms now allocate over 30 per cent of their brand mix to D2C and new-age products. Key FMCG brands are also seeing a notable increase in their online sales, with growth rates exceeding 20 per cent, largely driven by the rapid adoption of quick commerce. The report outlined that in 2025, quick commerce is expected to further strengthen, its ability to deliver a wide range of products quickly, with minimal effort for consumers, is likely to make it a dominant player in India's evolving retail ecosystem. As the sector continues to expand, it is set to redefine how Indians shop, offering unparalleled convenience and accessibility across diverse geographies and product categories. (ANI)
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