India’s Quick Commerce Market Set to Grow 40% Annually Until 2030, Says Report

As the demand for 10 minute delivery increases, India’s quick commerce market is expected to grow by more than 40% annually until 2030. This growth will be driven by expansion into new product categories, regions, and customer segments, says a report.

The report titled ‘How India Shops Online 2025 by Bain and Company highlights that by 2024, quick commerce platforms accounted for over two-thirds of all e-grocery orders and 10% of total e-retail spending. It also points out that the quick commerce space is becoming more competitive with the entry of new players such as Flipkart Minutes, Myntra’s M-now, BigBasket’s BB Now, and Amazon’s Tez.

It further says, “Players have also unlocked a profitable model to scale up through a blend of customer-facing and back-end initiatives.”

Answering the conventional question as to how quick commerce is successful in India as compared to the rest of the world, the report says that high population density, lower labor costs, and the use of dark stores to optimise last-mile delivery have worked in the country’s advantage.

In contrast to India’s profitable growth, global quick-commerce markets have struggled with profitability due to high operational costs and lower population density.

Many Western players like Getir, Gorillas, and Gopuff have either exited or consolidated due to unprofitable models. Unlike India’s profit-driven quick commerce ecosystem, where Blinkit, Swiggy Instamart, and Zepto continue to expand, the US and European markets have seen slower adoption and multiple shutdowns, adds the report.

India versus China

The report further indicates that running a quick commerce business in India is cheaper than in China because manpower (labor) costs are only 20% (0.2x) of China’s.

Further, the cost of renting for business operations—such as warehouses, distribution centers, and dark stores is half as expensive in India compared to China.

Key to Profitability

The report further indicates that three factors including high order density, basket size expansion, and operational cost efficiencies have helped unlock profitability form quick commerce platforms.

High order density is achieved by clustering dark stores in high-demand urban areas. This in turn, helps optimize delivery routes, and reduce fulfillment time.

Further, basket size expansion has been driven by a broader SKU assortment. This has increased from around 6,000 in 2023 to over 20,000 in 2024.

The report highlights key challenges that quick commerce platforms must navigate amid intensifying competition.

One major shift is that expanding SKU assortments has created a need for larger dark stores. This in turn, requires need for new operational formats.

Growing competition has also put pressure on margins, as players battle for market share and prime dark store locations, driving up costs. Further, the long-term viability of the quick commerce model beyond top-tier cities remains uncertain, as lower order density, purchase frequency, and spend per order could strain unit economics at scale.