India’s next grocery goldmine lies beyond metros

India's grocery market is on the cusp of a new era beyond the metros, according to a report by Redseer Strategy Consultants. While quick commerce has dominated the grocery landscape in metro cities, where speed and convenience reign supreme, the report suggests that the next frontier lies in the value-conscious consumers in Tier-II, Tier-III, and smaller towns.

These Bharat households, valued at $625-675 billion annually, are anticipated to reach $1 trillion by FY30 driven by rising incomes and household formation. Despite comprising only a fraction of India's overall consumption, this segment is rapidly expanding, with their share of total consumption expected to rise to 40% by 2030. The report argues that the next online grocery opportunity lies in selling groceries online to this existing base of value commerce shoppers, who currently transact primarily through kiranas, rather than attracting new internet users.

The shift in demand patterns between metros and Bharat households highlights a tale of two Indias, with metros favoring quick commerce and Bharat consumers prioritizing affordability and value over speed.