Quick commerce rewrites FMCG growth playbook as brands chase premiumisation, new consumers

Nearly six years since quick commerce first emerged in India, the channel has evolved into far more than a convenience-led distribution route for FMCG companies. It is becoming a testing ground for new products, a gateway to premium consumers and a way for brands to expand into markets where traditional distribution may still have limited reach.

Marico , in its latest earnings call, said its core business on quick commerce grew more than 50%, with the channel now contributing around 5% of its India business revenue, excluding digital brands. For Hindustan Unilever , quick commerce is growing at 40% to 50%, while Nestlé India says its premium portfolio has risen from 11% to 14% of its business, with premium products growing nearly 500 basis points ahead of overall growth.

According to ICICI's brokerage report on ITC , "In FMCG, modern trade channels sales accelerated on the back of improved mobility & store footfalls. E-commerce channels sales has grown 4.2x in last three years and is now contributing 7% of sales. The company has increased the coverage of rural stockist by 2.7x in last three years. Similarly, direct distribution has increased by 1.3x from pre-pandemic levels."

The opportunity is only getting bigger. A Cornell University analysis estimates India’s quick commerce gross merchandise value could rise from around $7.1 billion in FY25 to $35 billion by 2030. That scale implies the sector to sustain double digit growth, and potentially triple digit growth in some phases, for several years.

From convenience channel to innovation engine

For FMCG companies, however, the bigger change is what happens inside the basket.

Nestlé India’s managing director, Manish Tiwary, said the company sees e-commerce and quick commerce as channels that are not merely driving consumption but also helping it acquire new customers, premiumise its portfolio and accelerate innovation. “These channels are not just about overall consumption, but it is about acquiring new customers, more importantly, premiumising our portfolio,” he said.

Nestlé has used quick commerce platforms as launch pads for products such as MAGGI Bowl and Vietnamese Latte. Tiwary said the company is also working with platforms on fit for purpose portfolios and targeted activations. The company sees the ability to replenish thousands of dark stores reliably as another important competitive factor. It works with Blinkit, Instamart, Zepto, Amazon Now, Flipkart Minutes and BigBasket, and says it has one of the best fill rates among suppliers.

HUL is taking a similar approach by creating channel specific assortments and packs. Priya Nair, CEO & MD said quick commerce allows the company to “segment consumers” and build the right portfolio and channel architecture around them. The company is also using tailored assortments, price pack architecture and data to improve availability, visibility, conversion and repeat usage.

For smaller or regional brands, the impact can be even more pronounced. At Marico, the Badshah spices business has expanded beyond Gujarat and Maharashtra into Madhya Pradesh, Rajasthan and Delhi NCR, with quick commerce and e-commerce helping the brand travel into these markets. Their combined contribution is now nearly 6% of Badshah’s overall turnover, while e-commerce is growing at triple digits. The business has grown from about Rs 220 crore when acquired to an exit run rate of around Rs 400 crore.

The channel is not replacing traditional trade, though. Marico’s MD & CEO Saugata Gupta said the company believes in an “and” strategy, with general trade continuing to provide distribution strength while alternate channels drive premiumisation and innovation.

That distinction matters as quick commerce expands. Much of its growth is still a shift in where consumers buy rather than entirely new consumption. Marico said it is therefore developing channel specific pack architectures and using quick commerce to test market new products while limiting “cannibalisation”.

For FMCG companies, the race is consequently no longer simply to get products onto a dark store shelf. It is increasingly about using the channel to decide what gets launched, who gets targeted and how quickly a brand can scale.