Quick commerce gets popular, users spending more on such platforms: Meta study

New Delhi: Quick commerce has gained in popularity in India, with 91% of online consumers aware of such platforms and more than half having used them recently, according to a report released by Meta.

Key drivers for the ascent of quick commerce include convenience, efficiency, and accessibility. Notably, 57% of users are spending more on quick commerce platforms, primarily on grocery and personal care products.

While fashion items are more commonly associated with traditional e-commerce, the grocery segment has benefited from the growing popularity of quick commerce brands. Reducing delivery times and costs, along with implementing loyalty programs, can further stimulate spending, the report added.

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India's fast-growing quick commerce market is dominated by Zomato-owned Blinkit, Zepto, and Swiggy Instamart, prompting traditional e-commerce platforms like Flipkart to enter the fray.

Meta’s India quick commerce study surveyed 2,501 internet users aged 16-64. The survey identifies quick commerce platforms as the favoured mode for purchase of daily essentials, with 85% of respondents choosing it for food and grocery. Meanwhile, clothing and accessories segments lead on e-commerce platforms, capturing 75% of volume sales. For high-value purchases, however, physical stores remain the top choice, with more than 50% of the respondents preferring in-store shopping for premium products.

Single largest vertical

Globally, e-commerce is the single largest vertical in terms of advertisements for Meta. “These habits are not very different across the world,” Arun Srinivas, director and head (India), ads business, Meta, said in a virtual interview with Mint.

The US-based Meta is the parent company of social media platforms such as Facebook, Instagram, and WhatsApp. These platforms corner a large share of the digital advertising pie in India.

The rapid growth of quick commerce platforms over the past two years has intensified competition within the broader e-commerce landscape. Both established and emerging players are vying for market share by offering increasingly quicker delivery times. Redseer, a consultancy, pegs the size of the quick commerce market in India at $3.34 billion in 2024 and sees it nearly tripling to $9.95 billion by 2029 at a compound annual growth rate of over 4.5%.

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While these platforms aggressively advertise both online and offline, they've also become significant contributors to the revenue of digital advertising platforms. These companies are flush with funds, too. Quick commerce startup Zepto recently secured $340 million in follow-on funding, valuing the company at $5 billion. Traditional e-commerce majors such as Flipkart and Amazon, too, are eyeing the quick delivery market. Over the next 12-24 months, companies are expected to plough money to expand their reach as well as draw consumers to their platforms.

Momentum in India's quick commerce sector is likely to continue over the next 12-24 months, with both existing and new players likely to boost spends on promotions, publicity and driving consumer engagement, said Karan Taurani, Senior VP, Elara Capital.

Growth expected

According to media buying agency GroupM's estimates, digital media advertising in India is expected to grow by 13% to reach ₹88,502 crore in 2024, cornering 57% of the total ad spending. Within digital ad revenue, search contributes 22%, retail media 18%, and the rest 60%.

“As we exit 2024, the two key trends that stand out in the e-commerce space are around the rise of quick commerce and the continued acceleration of online shopping in tier-2 and tier-3 markets. The studies underscore how AI-powered personalization and discovery, creators, and messaging are enabling the quick commerce and online shopping platforms to be more easily discoverable and accessible to consumers, enabling brands to create more seamless, engaging, and impactful shopping experiences that cater to the consumers’ evolving preferences,” Srinivas said.

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While grocery and personal care products naturally have the highest association with quick commerce services, there is an increasing adoption of more niche categories such as hair care, skincare, and health and wellness.

Meanwhile, influencers are playing a pivotal role in consumer decision-making, particularly in boosting brand visibility and driving favourable perceptions. More than a third of the respondents have discovered new brands through influencers and 30% have purchased a product recommended by an influencer. The study also showed that Gen Z, those born between 1997 and 2012, is leading the adoption of quick commerce with 87% of Gen Z respondents saying that they have discovered new products or brands via Meta platforms.

Separate report

Separately, Meta commissioned a report to study online shopping habits in tier-2 and tier-3 cities in India. This was done with 2,182 internet users living in these towns.

Fashion, food and beauty and mobiles are the top categories purchased online in tier-2 and tier-3 towns. But even for categories such as jewellery and accessories, large electronics, home furnishings, online and offline purchases are now at par. Social media is the top channel for shoppers to find new products or brands. As many as 68% of respondents from tier-2 and tier-3 cities say that they have discovered and found out about products via social media.

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“With the consumer behaviour in tier-2 and tier-3 markets shifting, it's now a fertile ground for quick commerce to proliferate these geographies in a big way in 2025,” said Srinivas.'