In 2023, the food and grocery market size in India amounted to about ** trillion Indian rupees. The market size will likely increase to over ** trillion rupees by 2027.

The sales value of offline and online grocery retail across India was over ** trillion Indian rupees in 2021. The offline grocery retail includes modern and traditional (Kirana) grocery stores. The grocery retail sales value is likely to increase to about ** trillion rupees in 2030.

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India Grocery Market Size 2025-2029

The India grocery market size is forecast to increase by USD 352.8 billion, at a CAGR of 8.5% between 2024 and 2029.

The India Solar Power Market is segmented by Platform (Offline, Online), product (Food Grains, Bread Bakery and Dairy Products, Fruits and Vegetables, Personal Care, Others), Method (Online Payments, Cash on Delivery), and Geography (APAC: India). This segmentation reflects the market's diversity, driven by increasing demand for food grains and fruits and vegetables in India, growing adoption of online platforms with online payments for convenience, and the continued reliance on Cash on Delivery for offline purchases to meet regional consumer preferences across the APAC region.
The grocery market is experiencing a significant shift towards online shopping, with m-commerce seeing particularly rapid growth. This trend is driven by the convenience and time savings offered by online platforms, as well as the increasing availability of delivery and pick-up options. Convenience stores and convenience-focused grocery stores offer a wide range of household goods and quick meal solutions. However, end-users exhibit mixed perceptions towards this mode of shopping, with some expressing concerns over product quality and freshness. Another key trend in the market is the rising demand for functional foods and beverages, as consumers prioritize health and wellness. This shift is expected to continue, with an increasing number of players introducing new product offerings to cater to this demand. 
Despite these opportunities, challenges remain, including the need to ensure product quality and freshness in the online channel, as well as the increasing competition and pressure to differentiate offerings. Companies seeking to capitalize on market opportunities and navigate challenges effectively must focus on delivering high-quality products, providing excellent customer service, and leveraging technology to enhance the shopping experience. Machine learning and artificial intelligence are being integrated to improve product placement, customer segmentation, and demand forecasting. 

What will be the size of the India Grocery Market during the forecast period?

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In the dynamic grocery market, store formats continue to evolve, with local sourcing gaining traction as consumers seek fresher produce and reduced food miles. Grocery pickup and delivery services, including online ordering and same-day delivery, are increasingly popular, driven by consumer convenience and the ongoing pandemic. Food waste management and safety are top priorities, with voice ordering and precision agriculture technologies helping to minimize waste and ensure food safety. Virtual reality shopping and augmented reality experiences enhance the customer experience, while retail analytics and customer insights provide valuable data for pricing strategies and product assortment decisions. The circular economy is a growing trend, with emphasis on food security, automated checkout, and alternative protein sources.
Urban farming and labor shortages are also influencing market dynamics, as retailers explore innovative solutions to meet demand. Plant-based foods and pricing strategies remain key areas of competition, with retailers leveraging digital shelves and retail analytics to optimize offerings and stay competitive.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Platform

  Offline
  Online


Product

  Food grains
  Bread bakery and dairy products
  Fruits and vegetables
  Personal care
  Others


Method

  Online payments
  Cash on delivery


Geography

  APAC

    India

By Platform Insights

The offline segment is estimated to witness significant growth during the forecast period. The grocery market in the US is witnessing significant trends and advancements, enhancing the shopping experience for consumers. Grocery pickup and delivery services, such as click and collect and food delivery, are increasingly popular, offering convenience and time savings. Price transparency is a key focus, with many retailers employing competitive pricing strategies to attract customers. Store layouts are evolving, with an emphasis on fresh produce, household goods, and meal kits. In-store kiosks and mobile apps enable customers to access predictive analytics and personalized product recommendations. Supply chain optimization and inventory management are essential for maintaining product availability and reducing food waste.

Specialty stores catering to health and wellness, natural foods, and organic produce are growing in popularity. Private label products and subscription services are also gaining

In 2020, the total retail value of the food and grocery sector was *** billion U.S. dollars in urban India. Fresh fruits and vegetables accounted for a retail value of ** billion U.S. dollars in 2020 and are likely to increase to *** billion U.S. dollars in 2025.

The Indian grocery market, valued at $651.06 billion in 2025, is experiencing robust growth, projected to expand at a CAGR of 8.1% from 2025 to 2033. This expansion is fueled by several key drivers. Rising disposable incomes and urbanization are leading to increased consumer spending on groceries. The burgeoning middle class, particularly in urban areas, is demanding more convenience and a wider variety of products, driving the growth of both online and offline grocery channels. Furthermore, changing lifestyles and a preference for ready-to-eat and ready-to-cook meals are boosting demand for processed foods and packaged goods within the grocery sector. The increasing adoption of e-commerce platforms and mobile applications for grocery shopping is significantly contributing to market growth, offering consumers unprecedented convenience and access to a vast product range. Technological advancements like efficient cold chain logistics and improved supply chain management are enhancing efficiency and reducing food wastage, supporting market expansion. However, challenges remain. Maintaining consistent supply chain efficiency, particularly for perishable goods like fruits and vegetables, is crucial for growth. Competition among established players and the emergence of new entrants, including quick-commerce platforms, creates a dynamic and competitive landscape. Price fluctuations in agricultural commodities and logistical complexities can also impact profitability. Segmentation analysis reveals strong growth across all product categories, with food grains, bread, bakery and dairy products, fruits and vegetables, and personal care items all contributing significantly to the market's overall value. The market's landscape includes both established giants like Reliance Industries and Walmart, alongside rapidly growing players like Zepto and Blink Commerce, demonstrating the diverse competitive environment and significant opportunities for both large and small players to carve their niche. The offline channel still dominates, but the online segment is experiencing rapid expansion driven by technological advancements and changing consumer preferences.

Food Retail Market Outlook

The global food retail market size was valued at approximately $12.3 trillion in 2023 and is forecasted to reach around $17.9 trillion by 2032, registering a CAGR of 4.2% during the forecast period. The significant growth factor driving this market includes the increasing global population, urbanization, and the rising demand for convenient and healthy food options. The food retail market has been witnessing substantial transformation due to the integration of advanced technologies, such as artificial intelligence and machine learning, to enhance supply chain efficiency and customer experience.

One of the primary growth factors for the food retail market is the rising global population. The United Nations projects that the world population will reach approximately 9.7 billion by 2050, which translates to a higher demand for food products. Urbanization is another key driver, as more people move to urban areas, the need for accessible and diverse food retail options increases. Urban consumers typically favor quick and convenient shopping experiences, further propelling the growth of supermarkets, hypermarkets, and online retail channels.

Technological advancements play a pivotal role in the growth of the food retail market. The adoption of artificial intelligence (AI), machine learning, and big data analytics has revolutionized the way retailers manage inventory, forecast demand, and personalize customer experiences. AI-powered chatbots and virtual assistants enhance customer service, while data analytics provides insights into consumer behavior and preferences. These technologies contribute to improving operational efficiency and reducing costs, which in turn supports market growth.

Another significant growth factor is the increasing consumer preference for healthy and organic food products. Growing awareness about health and wellness, coupled with the rising incidence of lifestyle-related diseases, has led consumers to seek healthier food options. This shift in consumer behavior has created a surge in demand for fresh produce, organic food, and minimally processed products. Retailers are responding by expanding their product offerings and promoting health-focused brands, thereby driving market expansion.

Regionally, the food retail market is witnessing robust growth across various regions. North America and Europe have well-established food retail infrastructures, with a high penetration of supermarkets and hypermarkets. In contrast, the Asia Pacific region is experiencing rapid urbanization and economic growth, leading to a burgeoning middle class with increased purchasing power. This region is expected to witness the highest CAGR during the forecast period, driven by countries like China and India. Latin America and the Middle East & Africa are also emerging markets with significant potential for growth, supported by improving economic conditions and increasing consumer spending on food and beverages.

Product Type Analysis

The food retail market is segmented by product type, encompassing fresh produce, packaged food, beverages, dairy products, bakery and confectionery, meat and seafood, and others. Fresh produce remains a staple category in food retail, driven by the increasing consumer preference for healthy and organic foods. Retailers are investing in farm-to-table supply chains to ensure the availability of fresh fruits and vegetables. Additionally, the trend towards locally sourced produce is gaining traction, with consumers willing to pay a premium for high-quality, fresh, and organic products.

Packaged food is another significant segment within the food retail market. This segment includes a variety of processed and convenience foods that cater to the fast-paced lifestyle of modern consumers. The demand for packaged food is fueled by busy schedules, dual-income households, and the growing popularity of ready-to-eat meals. Innovations in packaging technology, such as resealable and microwaveable packaging, are enhancing the convenience factor, making packaged food an attractive choice for consumers.

The beverages segment encompasses a broad range of products, including soft drinks, juices, bottled water, tea, coffee, and alcoholic beverages. The rise in health consciousness among consumers has led to an increased demand for functional beverages, such as fortified drinks, energy drinks, and plant-based beverages. The growing trend of premiumization, where consumers are willing to spend more on high-quality and innovative beverage options, is also driving growth in this segment. Additio

In financial year 2022, dairy products accounted for **** percent of India's total packaged food retail market. This was followed by snacks and sweets products which contributed to **** percent of the total packaged food retail market in India.

The global food and grocery retail market is expected to grow from USD 12.8 trillion in 2025 to USD 17.7 trillion by 2035, reflecting a CAGR of 3.3%. The food and grocery retail market is growing rapidly due to several important factors. Increasing urbanization is a major driver as more people move to cities, which boosts demand for organized retail formats like supermarkets and hypermarkets.

Country wise Insights

Comprehensive dataset of 3,982 Gourmet grocery stores in India as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

The number of traditional retail grocery retailers across India in 2022 amounted to about ** million. There was significant and consistent growth in this format of stores since 2013 which includes kiranas or corner shops. Furthermore, this format of grocery retailers accounts for a large portion of the grocery retail market. During the same time period, modern retailers in this segment had about *** thousand stores across the country in comparison.

Comprehensive dataset of 77 Mexican grocery stores in India as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

Comprehensive dataset of 16,497 Grocery stores in Andhra Pradesh, India as of August, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

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India Online Grocery Market Size 2025-2029

The online grocery market in India size is forecast to increase by USD 11.02 billion at a CAGR of 21% between 2024 and 2029.

The online grocery market is witnessing significant growth due to the increasing popularity of e-commerce platforms and the convenience they offer. The trend toward functional foods and beverages, such as antioxidant-rich fruits and vegetables, coffee, tea, and spices, is driving demand in this market. However, challenges remain, including the need for efficient logistics and last-mile delivery solutions, advanced payment gateways, and effective packaging to maintain the freshness of perishable items like bread, cheese, and pet care products. E-commerce technology continues to evolve, with LED lights and smartphone apps enhancing the shopping experience. Dried fruits and nuts, personal care items, and a variety of other groceries are also readily available online. As consumers increasingly turn to digital payment methods for convenience and security, the online grocery market is poised for continued growth.

What will be the Size of the market During the Forecast Period?

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The online grocery market has experienced significant growth in recent years, fueled by urbanization, increasing internet penetration, and the widespread adoption of smartphones. This digital transformation has led to the emergence of various business models, including service portals, food-delivery platforms, and e-commerce portals, catering to consumers' convenience and time-saving benefits. Small-scale grocers have also joined the fray, leveraging virtual supermarkets and logistics solutions to compete with larger players. E-commerce platforms have become integral to this sector, offering payment gateways, last-mile delivery solutions, and promotional strategies such as subscription models and membership programs. Delivery options have evolved, with scheduled deliveries and real-time food preparation becoming increasingly popular. Overall, the online grocery market is poised for continued expansion, driven by the convenience and efficiency offered by digital platforms.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Food products
  Non-food products


Type

  Online
  Cash on delivery


Platform

  Website
  Mobile


Geography

  India

By Product Insights

The food products segment is estimated to witness significant growth during the forecast period.

Online grocery sales have experienced significant growth due to urbanization and the increasing use of digital platforms for shopping. Consumers value the convenience and time-saving benefits of online grocery marketplaces, which offer a wide range of products from food grains and dairy products to fruits, vegetables, and specialty items. E-commerce portals and food-delivery platforms have disrupted traditional brick-and-mortar stores by providing customized and personalized shopping experiences. Quick commerce business models, such as those employed by companies like Instacart and Shipt, offer scheduled deliveries and subscription models, further enhancing the convenience factor. Small-scale grocers and local producers have also joined the online grocery market, expanding product offerings.

Swift delivery processes, integrated return policies, and easy digital payment methods, including cash on delivery and digital payments, add to the appeal of online grocery shopping. The internet and smartphones have made virtual supermarkets accessible to urban consumers, enabling price comparison and product selection from the comfort of their homes. E-commerce technology, including mobile applications, logistics, and payment gateways, streamline the shopping experience. Trust and security are ensured through promotional strategies and membership programs. Overall, the online grocery market offers a convenient and efficient solution for consumers seeking high-quality food products.

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Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast , partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the market.

Amazon.com Inc. - The company provides a selection of fresh produce, including fruits and vegetables, dairy products such as cheese, dry fruits, lentils, and home care items for purchase via its platform.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, inclu

We asked Indian consumers about "Grocery shopping by store brand" and found that ******** takes the top spot, while ****** is at the other end of the ranking.These results are based on a representative online survey conducted in 2025 among 5,463 consumers in India. Looking to gain valuable insights about grocery store customers across the globe? Check out our reports about consumers of grocery stores worldwide. These reports offer the readers a comprehensive overview of grocery store customers: who they are; what they like; what they think; and how to reach them.

Forecast: Wholesale and Retail Trade, Transport, Accommodation and Food Service Activities Gross Value Added in India 2024 - 2028 Discover more data with ReportLinker!

The dataset used in this study was created based on reports of shopping patterns in Indian retail stores. It included records of items frequently purchased together, such as 'Bread', 'Honey', 'Bacon', 'Toothpaste', 'Banana', 'Apple', 'Hazelnut', 'Cheese', 'Meat', 'Carrot', 'Cucumber', 'Onion', 'Milk', 'Butter', 'Shaving foam', 'Salt', 'Flour', 'Heavy cream', 'Egg', 'Olive', 'Shampoo', and 'Sugar'. The dataset highlighted purchase patterns, such as a tendency for customers purchasing salt and onions to also purchase eggs, based on historical trends.

Explore this rich dataset capturing daily prices of grocery essentials. From fresh produce to pantry staples, delve into the fluctuations of everyday items to uncover valuable insights for data scientists and analysts. Whether you're tracking market trends or optimizing shopping strategies, this dataset offers a treasure trove of information for informed decision-making.

Here's a short description for each column in your dataset:

Product Name: The name or description of the grocery item.

Category: The category to which the product belongs (e.g., fruits, vegetables, dairy, etc.)

Quantity: The quantity or amount of the product purchased.

Original Price (Rs.): The original price of the product before any discounts, in Indian Rupees.

Discount: The discount offered on the product, usually represented as a percentage.

Discounted Price (Rs.): The price of the product after applying the discount, in Indian Rupees.

Retail Price: DOAC: Bread: Local: 400 or 800 Grams: Rajasthan: Jaipur data was reported at 35.000 INR in Mar 2023. This stayed constant from the previous number of 35.000 INR for Feb 2023. Retail Price: DOAC: Bread: Local: 400 or 800 Grams: Rajasthan: Jaipur data is updated monthly, averaging 20.000 INR from Apr 2005 (Median) to Mar 2023, with 191 observations. The data reached an all-time high of 35.000 INR in Mar 2023 and a record low of 5.000 INR in Dec 2005. Retail Price: DOAC: Bread: Local: 400 or 800 Grams: Rajasthan: Jaipur data remains active status in CEIC and is reported by Directorate of Economics and Statistics, Department of Agriculture and Farmers Welfare. The data is categorized under India Premium Database’s Price – Table IN.PC131: Retail Price: Department of Agriculture and Cooperation: Food: by Cities: Bread: Local.

The Indian Travel Retail Market Report is Segmented by Product Type (Fashion and Accessories, Wine and Spirits, Tobacco, Food and Confectionary, Fragrances and Cosmetics, and Other Product Types (Stationery, Electronics, Watches, Jewelry, Etc. )) and Distribution Channel (Airports, Airlines, Ferries and Other Distribution Channels). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

India Retail Price Index: Industrial Workers: 2001p: Other Food: Gur data was reported at 342.350 2001=100 in Oct 2018. This records an increase from the previous number of 340.240 2001=100 for Sep 2018. India Retail Price Index: Industrial Workers: 2001p: Other Food: Gur data is updated monthly, averaging 254.480 2001=100 from Jan 2006 (Median) to Oct 2018, with 154 observations. The data reached an all-time high of 349.690 2001=100 in Oct 2017 and a record low of 114.510 2001=100 in Jan 2008. India Retail Price Index: Industrial Workers: 2001p: Other Food: Gur data remains active status in CEIC and is reported by Labour Bureau Government of India. The data is categorized under India Premium Database’s Inflation – Table IN.IG008: Retail Price Index: Industrial Workers: 2001=100: Food: Other Food.