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Quick commerce is expected to emerge as the fastest-growing segment in India's digital commerce sector, expanding at a compound annual growth rate (CAGR) of 45 per cent to reach USD 35-40 billion over the next five years, according to a report by McKinsey & Company.
The report noted that the quick commerce segment, currently valued at USD 5 billion-USD 6 billion in 2024, is projected to see rapid expansion driven by rising consumer demand for speed and convenience, especially in urban areas. "Quick commerce is expected to grow the fastest, at a CAGR of 45 per cent," the report stated, adding that the segment is expected to reach USD 35 billion-USD 40 billion by 2030. Quick commerce is rapidly gaining share in India's digital retail landscape, supported by growing consumer preference for faster deliveries and improved service efficiency. The report noted that the segment is being propelled by consumers in urban clusters who increasingly value quick delivery and convenience. The growth of quick commerce is also being supported by deeper product assortments, faster delivery service level agreements, and the adoption of just-in-time fulfilment models. Strong internet penetration across metro cities and habit-forming consumer behaviour are further contributing to the segment's expansion. The report highlighted that early movers in the quick commerce space have a structural advantage due to optimized store networks, access to high-quality demand data, predictive analytics, and disciplined operational models. Additionally, quick commerce platforms are expanding beyond grocery deliveries into a broader range of product categories, further strengthening their role in India's digital commerce ecosystem. India's digital commerce ecosystem is currently driven by three key channels, traditional e-commerce marketplaces, quick commerce platforms, and the direct-to-consumer (D2C) channel. These platforms collectively form the foundation of the country's online commerce sector, offering sellers multiple ways to reach consumers. According to the report, traditional e-commerce marketplaces provide scale and product discovery, while quick commerce platforms focus on speed and convenience. The direct-to-consumer channel enables brands to have greater control over visibility, pricing, and distribution, allowing them to adopt tools and services based on their growth stage. As quick commerce continues to evolve and scale, it is expected to become a significant contributor to India's overall e-commerce growth story, driven by technological advancements, consumer demand, and expanding digital infrastructure, according to the report. (ANI)
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