Robust Growth Forecast for India’s Food Delivery & Quick Commerce Sectors

India's food delivery and quick commerce sectors are set for significant expansion over the next five years, according to a comprehensive analysis by Nirmal Bang. The report projects the food delivery market will grow at an impressive compound annual growth rate (CAGR) of 17-22% from 2023 to 2028.

The quick commerce sector is predicted to outpace these figures, with anticipated growth exceeding 60% CAGR in the same period. Industry leaders like Swiggy and Eternal are projected to maintain their dominance in food delivery, buoyed by strong customer preferences and extensive platform offerings. Nonetheless, some supply-side challenges persist.

Product innovation and swifter delivery times are enhancing these sectors, though affordability remains a challenge. In the quick commerce arena, Eternal's Blinkit currently leads in scale and profitability. Swiggy is gaining ground with strategic investments aimed at bolstering market share and profitability, potentially achieving positive contribution profit by FY27.

(With inputs from agencies.)