A new report said on Friday that online food is going to be the next battlefield for growth, growing to over $18 billion by 2024, as businesses from Reliance to Amazon put their top dollar at your doorstep in serving regular groceries.
According to a joint initiative study by Bengaluru-based market research company RedSeer and Bigbasket (Brand Intelligence), led by the substantial increase in organic adoption during Covid-19, eGrocery in June this year saw an increase in gross merchandise value (GMV) of 1.7 times compared to January.
For the rest of the year, online groceries will remain steady to hit more than $3 billion, the study noted.
Mr Hari Menon, co-founder and CEO of BigBasket said, “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”.
The report found that after the pandemic, demand for comfort foods such as noodles and cookies, immunity boosters such as lemon and hygiene items such as sanitizers picked up while essentials stayed high.
Pre-Covid snacks and branded foods rose 5 percent quarterly, but growth in the June quarter soared to 75 percent.
Biscuits and cookies were the largest sub-category of snacks and advertised foods and developed the most in Q2.
Pre-Covid beverages rose by 2 per cent quarterly, but growth in Q2 soared to 50 per cent.
Mr Anil Kumar, founder and CEO of consulting firm RedSeer said, “Personal Care grew by 5 per cent quarterly pre-Covid but jumped to 24 per cent in Q2 due to Covid. 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”.
Pre-Covid home utilities rose by 6 percent quarterly, but in Q2 they jumped to 11 percent.
Within home services, the largest sub-category was detergents and dishwash, but in the last quarter it increased the least.
Home services have not been seriously impacted by the pandemic, according to the report.
Source: IBEF
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