Key Growth Factors for Online Grocery

Online grocery shopping is expected to grow at 37% CAGR and be about a USD $38 Billion market by 2028. In this particular vertical, high rate of urbanisation and busier lifestyles are main drivers of online grocery shopping.

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When we diagnose this premise with our data we see clearly that the contribution of Grocery in the South and West Zone is the highest and significantly more than North and East. According to the Government of India the rate of urbanisation in South and West India is nearly 50% and in North and East states it is about 25%. Along with higher internet penetration and ability to do online payments - South & West zone enjoy grocery shopping a whole lot more.

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Let's take a look at the Vumonic data to see:

It is crucial for marketplaces to keep this preference and behaviour difference by Zones in mind while formulating strategies. Overall volume across categories is also high in South and West Zones. This means that converting new users in North and East requires more effort and marketing spends. This has clear and impactful strategic effects on which each platform would be wise to leverage!

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In our next piece we will explore volume contributions across Zones for key Platforms. Stay tuned.

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Vumonic Datalabs is a global consumer intelligence platform. We provide high quality, deterministically linked, large structured data that can be used to derive deep consumer,  business and market insights. Our proprietary data pipelines deliver unbiased actual transaction data collected in a privacy secure manner via large global panels.