The Indian e-commerce industry has been on a major upswing for some time now, in fact at the current rate it is set to overtake the United States to become the second largest e-commerce market by 2034. The market is expected to reach $111.40 billion by 2025, having only been at $46.20 billion in the year 2020, that constitutes a growth of 19.24% CAGR.
The online grocery market alone is expected to see vast amounts of growth, going from US $1.9 billion in 2019 to US $18.2 billion in 2024 which constitutes a CAGR of approximately 57%. Between the years 2025 and 2030, India’s ecommerce market is set to triple to reach $350 billion in the year 2030. Quickly becoming one of the most lucrative industries in the country, e-commerce is still unbeknownst to a large part of the population, due to the lack of digital literacy.
The consumer base is largely split between electronics and apparel purchases with an even 40% split each, the other 20% consists of food and groceries, jewelry, furniture etc.
One of the key factors that’s helping and will continue to be pivotal in achieving the sorts of growth numbers listed here is the fact that this industry is policy backed, for example 100% FDI is allowed in e-commerce. Government-backed schemes have been in place since the beginning of the century and continue to make their presence felt through things such as GeM(Government e-Marketplace), Consumer protections rules, and National retail policy.
In the year 2020, the festive season sales which usually last from October 15 to November 15 recorded gross sales of US$ 8.3 billion, which was a 65% increase from the year before when there had been recorded sales of US$ 5 billion. An emerging and fastest growing sector of the e-commerce is Beauty and wellness, which seems to be at the helm of a bullish e-commerce economy.
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