Value-first customers of BigBasket, Grofers, JioMart, others to drive e-grocery market to $24B by 2025

The e-commerce in India is slated to be dominated by value-first or value-conscious buyers in the new decade and a majority of these buyers are apparently based in Tier-II cities and beyond. The strong prediction is layered across sections of e-commerce including low margin ones such as grocery. In fact, it is the value-first customers who are likely to accelerate the growth of the online grocery segment, which has players including BigBasket, Grofers, JioMart, Amazon Pantry, and Flipkart Supermart primarily, faster than the overall online grocery market that also includes convenience-first households.

While India’s e-grocery market is forecasted to scale up at 48 per cent CAGR over the next five years, the value-first segment, which accounts for 60 per cent of around $300 billion addressable market, is projected to grow at 53 per cent CAGR, according to a RedSeer analysis.