31% of urban Indians use quick commerce for primary grocery shopping: report

New Delhi: Quick commerce platforms are rapidly changing how urban Indians shop for groceries, according to a new study. The NIQ Shopper Trends 2024 report found 31% of urban Indians now use quick commerce for their primary grocery shopping, while 39% use it for top-ups. 

The report – based on a survey of 4,500 customers in 16 cities including Delhi, Gurugram, Noida, Mumbai, Bengaluru, Chennai and Hyderabad – said this trend is driving significant growth in the grocery sector. Popular categories include ready-to-eat meals (bought by 42% of respondents) and salty snacks (45%), it said.

Mitesh Dabrai, executive director of consumer and marketing insights at NIQ in India, said, "Shoppers today are more discerning, price-conscious, and channel-agnostic than ever before. The doubling of quick commerce usage signals an urgent need for FMCG brands to prioritise convenience and speed, while simultaneously addressing value perceptions. With 87% of shoppers feeling the impact of rising food prices, businesses must focus on strategic pricing and promotions to maintain shopper loyalty.

Boost for FMCG companies

An increasing number of fast moving consumer goods companies have been reporting rapid growth in sales through quick commerce apps such as Blinkit, Zepto and Swiggy Instamart. Procter & Gamble Hygiene and Health Care Ltd (PGHH), the parent company of brands such as Whisper, Vicks and Old Spice, said sales from quick commerce have more than doubled year-on-year.

This has caused traditional e-commerce and grocery delivery firms to take notice. Flipkart's quick delivery service went live in Bengaluru last month, while BigBasket announced a complete pivot to quick commerce (10-30-minute deliveries) from slotted deliveries, intensifying competition in the market.

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Mrinalini Srinivasan, chief financial officer, PGHH, said during the company’s analyst day last week, “There has been a 22% rise in monthly active users on India’s top five quick commerce websites from January to July. While currently a small channel, it is growing rapidly for us and is expected to continue to drive growth across FMCG as the channel expands to multiple locations.” P&G has invested in developing a deep understanding of consumers who frequent quick commerce platforms, she added.

“This tells us that their path to purchase is unique, with a disproportionate focus on convenience. We are supplementing our brand building efforts with a supply chain model to support this unique business structure. We know this is working because quick commerce for us is more than doubling year-on-year,” she said.

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Meanwhile, spice maker MTR said about 9% of its sales come from quick commerce. “Quick commerce is huge for us, albeit driven by the top consuming class of India,” said Sanjay Sharma, chief executive of Orkla India, which owns MTR.

Small traders up in arms

The rapid growth of quick commerce platforms has disputed the market, with small traders and distributors particularly upset by their rise. Last month a national distributors’ association, the All India Consumer Products Distributors Federation (AICPDF), wrote to trade and industry minister Piyush Goyal expressing concern about the growing popularity of quick commerce. 

They said quick commerce platforms are increasingly becoming direct distributors for major FMCG companies, sidelining traditional distributors and threatening the livelihood of small retailers. This unchecked expansion of quick commerce platforms is creating an uneven playing field, undermining the viability of small stores that have long been the backbone of India’s retail sector, they added. 

Also read: How offline grocers are adapting to the quick commerce surge

This could bring government scrutiny to quick commerce platforms, according to several media reports, but the shift in consumer behaviour is already well underway, driven by convenience and discounts. As mentioned above, urban shoppers are using quick commerce platforms not only for top ups but for their primary grocery shopping. E-commerce platforms have also become the go-to for staples, with 60% of respondents in NIQ’s survey saying they buy these online.

“While price sensitivity and promotions remain important, the rise of quick commerce, multichannel shopping, and a growing interest in premium private labels signal new growth opportunities for FMCG brands. Retailers and manufacturers must continue adapting to these shifts by offering innovative, convenient solutions to meet evolving shopper expectations,” the report said.

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