Quick commerce's uneven rise: Fresh produce, dairy, and electronics lag as snacks and staples drive growth

India’s quick commerce market is poised for a threefold growth between 2024 and 2027, reaching ₹1.5–1.7 lakh crore, according to a recent report by Kearney. What began as a niche offering for instant grocery top-ups is now reshaping how Indian consumers shop—and how brands and retailers respond. The growth is driven by rising urban demand, changing consumer habits, and a growing appetite for convenience. 

“Quick commerce is a fundamental shift that’s become a core pillar of India’s retail sector,” said Siddharth Jain, managing partner and country head, Kearney India. “It’s not only changing how India shops, but brands, too, are adapting their strategies. As quick commerce channels gain traction, companies are allocating higher budgets, ensuring visibility and presence within the format.”

While initial adoption was centred around top-up and impulse buys like snacks or beverages, the model is now reshaping broader consumption patterns. In households that use it, quick commerce is driving 6–8% incremental demand, not just a shift from other channels, the report notes.

The most traction has come in food staples such as atta, rice, and cooking oil, challenging the idea that this channel only suits last-minute needs. However, adoption varies across categories. Impulse-driven segments—munchies, cold beverages, chocolates—have surged. Festive and gifting purchases are also increasing, driven by quick commerce’s ability to fulfil urgent or last-minute needs.

Quick commerce is also fuelling premiumisation in several categories. "Segments such as gifting, personal care, and household needs have seen the highest shift toward premium products. This trend is reinforced by the fact that many premium product launches, from both emerging direct-to-consumer brands and leading FMCGs, are now happening on quick commerce platforms first,” the report says.

But not every category is experiencing the same boom. Fresh produce like fruits and vegetables remains more dependent on physical formats due to consumers’ preference for touch-and-feel selection. Essential items like dairy are growing but show relatively modest levels of premiumisation compared to other categories. This is so because in a market like India, consumers continue to prioritise affordability and freshness over premium alternatives. 

Similarly, electronics and personal care have lower adoption rates, partly because of limited assortment and the premium nature of purchases. However, as the sector evolves, an expanded product mix could boost adoption in these categories, says the report.

“What’s particularly noteworthy is that this migration is not uniform across all categories,” said Ankur Singh, partner, Consumer and Retail at Kearney India. “While food—especially staples—has seen the highest adoption rates in the early phase, our analysis challenges the perception that quick commerce is limited to top-up purchases. Instead, we are witnessing a broader evolution in consumption patterns, with quick commerce driving incremental growth and premiumization in some areas.”

This shift is also visible in how brands approach their retail strategy. While modern trade and e-commerce were historically dominant in terms of brand investments, quick commerce is now beginning to draw a comparable share. For food brands, it’s increasingly becoming a preferred platform due to its high repeat purchase rates. In non-food segments like personal care and household essentials, brands are gradually increasing allocations as instant delivery becomes a differentiator.

“Quick commerce is not just a fleeting trend—it represents a fundamental shift in the retail landscape,” Ankur added. “Its speed, convenience, and efficiency are redefining the future of grocery shopping in India, making it a true game-changer for the industry.”

Road ahead

Still, challenges remain. On pricing, for instance, quick commerce offers less discounting than e-commerce and modern trade, which continue to lead with aggressive price cuts. After accounting for delivery and handling charges, quick commerce turns out to be cost-effective only in comparison to kirana stores, not online platforms. The report cautions that discounting has never been a primary lever for growth in quick commerce, though players with deep pockets may explore it further.

Beyond consumer behaviour and brand investment, the sector’s impact on employment is significant. Quick commerce now employs around 6–7 lakh people, mostly in last-mile delivery and fulfilment roles, with projections of 11–13 lakh jobs by 2027. That’s nearly as many people as general trade employs per unit of monthly sales.

“Quick commerce is also rapidly emerging as a major employment generator,” Jain added, “with an estimated 6–7 lakh people currently employed in the sector and projections pointing to 11–13 lakh by end of 2027.”

It’s also changing the nature of employment. The model relies heavily on gig workers and hyperlocal fulfilment, distributing job creation more evenly across urban and semi-urban areas. The sector employs 62–64 people per ₹1 crore of monthly gross merchandise value (GMV), far more than e-commerce and nearly matching general trade. 

Consumers are shopping faster and leaning on more flexible channels. Going ahead, other retail channels—kirana stores, modern trade, and e-commerce—will have to consistently evolve to stay relevant.