India's quick commerce industry registers 280% growth in 2 years
According to a report by Chryseum, India's quick commerce industry has witnessed an explosive growth of over 280% in sales in just two years. The Gross Merchandise Value (GMV) of this sector jumped from $500 million in FY2021-22, to a whopping $3.3 billion in FY2023-24. This data shows that the quick commerce industry, which specializes in delivering small orders at lightning speed, is racing ahead of traditional e-commerce businesses.
Outpacing traditional e-commerce growth
According to the Chryseum report, the quick commerce industry grew at an impressive annual rate of 73% in FY2023-24, against India's e-commerce sector's annual growth rate of 14%. This shows a clear shift in what consumers want: they're all about those speedy and hassle-free delivery options now. Right now, the local quick commerce market is valued at $3.34 billion in 2024, and is expected to hit $9.95 billion by 2029, boasting a compound annual growth rate (CAGR) of over 4.5%.
A largely untapped market
According to the report, despite the sector's rapid growth, it remains largely untapped, with only a 7% penetration rate in a total addressable market valued at $45 billion. This indicates significant room for expansion, as quick commerce has now surpassed the market size of food delivery, the agency noted.
Quick commerce platforms adopt direct sourcing strategies
To make the most of this potential, quick commerce platforms are buddying up with manufacturers for direct sourcing, ditching the traditional distributor networks. This method not only simplifies operations but also cuts down costs, letting these platforms offer better prices to consumers. They're also continuously enhancing their tech infrastructure to improve their operational processes, which amps up agility and speed across the board.
