Sep 26, 2020
Purportedly reported that companies from Reliance to Amazon are staking their dollar investments in serving daily grocery at the consumer doorstep, a new report said that online grocery platform will soon turn into a ferocious battlefield growth and expansion taking the businesses to over $18 billion by the year 2024.
According to a joint report by a joint initiative by Bengaluru-based market consulting firm RedSeer and Bigbasket (Brand Intelligence), driven by the significant rise in organic adoption during Covid-19, eGrocery has been on a surge with clocking 1.7 times in gross merchandise value (GMV) in June this year as compared to the same year January 2020.
The report also stated that online grocery will remain steady for the rest of the year to reach more than $3 billion.
“The industry has seen more than 70 per cent ARR (annual recurring revenue) jumps in the last quarter across categories. This brings the opportunity to serve a larger set of customers, and some challenges with it,” said Hari Menon, co-founder and CEO of BigBasket.
with the demand market in view, the study found that demand for comfort foods like noodles and cookies, immunity boosters like lemon and hygiene products like sanitizers picked up after the pandemic while essentials remained strong.
Snacks and branded foods grew by 5 per cent quarterly pre-Covid, however growth jumped to 75 per cent in the month of June. Within snacks and branded foods, biscuits and cookies was the largest sub-category and grew the most in second quarter.
During pre-covid, beverages grew by 2 per cent quarterly, however growth jumped to 50 per cent in later months.
“We have observed that traditional brands which pivoted quickly to be digitally ready brands have seen 2x+ jump in sales compared to offline brands. We are excited to have this opportunity to serve the ecosystem,” said Anil Kumar, founder and CEO of consulting firm RedSeer.