India’s quick commerce sector has emerged as a dynamic growth avenue for the fast-moving consumer goods (FMCG) industry, experiencing a remarkable surge in sales during FY25. While quick commerce currently represents a relatively small portion of the overall revenue for major FMCG players, its rapid growth and expanding reach highlight its increasing importance in the Indian retail ecosystem.

Growth Dynamics of Quick Commerce in FMCG

Leading FMCG companies such as Hindustan Unilever (HUL), Britannia, AWL Agri-Business, Dabur, Tata Consumer Products, and Marico collectively posted quick commerce sales exceeding Rs. 4,400 crore (US$ 515 million) in FY25. Despite this significant sum, quick commerce accounts for only about 2-7% of their total sales, reflecting that the channel is still in a nascent but rapidly developing stage.

Specifically, HUL’s quick commerce sales accounted for 2% of its business, amounting to approximately Rs. 1,214 crore (US$ 142 million). Britannia’s quick commerce share stands at 4%, roughly Rs. 675 crore (US$ 79 million), while Tata Consumer Products sees about 7% of its domestic sales from this channel, equaling Rs. 900 crore (US$ 105 million). Other companies like Marico and Dabur report shares around 3-4%, with Marico at Rs. 244 crore (US$ 28.57 million) and Dabur at Rs. 500 crore (US$ 58.54 million). Even unlisted players such as Parle Products have a 4% share from quick commerce.

Role of Leading Quick Commerce Platforms

The surge in quick commerce is largely driven by digital-first grocery platforms like Blinkit, Swiggy Instamart, Zepto, and BigBasket. These companies have expanded aggressively into new urban locations, enhancing consumer convenience by offering instant delivery, transparent price comparison, and a full product range that traditional neighborhood stores cannot match.

This growth has been especially pronounced in India’s top eight to 10 cities, where quick commerce is beginning to take market share from general trade and modern retail formats. This shift is significant because these cities represent a large portion of FMCG consumption and are critical battlegrounds for consumer brands.

Margin Benefits and Promotional Challenges

FMCG companies report that margins in e-commerce, particularly quick commerce, tend to be better than in other channels. This is attributed to the higher share of premium products sold on these platforms, which consumers prefer for quick and convenient shopping.

However, this channel also entails challenges. Companies face increased sales promotion costs to maintain product visibility on quick commerce apps. Ranking high on search results within these apps requires constant marketing efforts, making it a competitive space for FMCG brands.

Consumer Convenience and Future Potential

The convenience factor remains a core driver for consumers adopting quick commerce. With no extra delivery charges and the ability to compare prices across a wide range of products, quick commerce platforms simplify the shopping experience. This aligns well with the evolving preferences of urban consumers who seek fast, hassle-free access to everyday essentials.

Despite quick commerce’s current modest share, the segment is poised for continued expansion as more consumers and FMCG companies embrace this fast-paced retail channel. The increasing penetration of smartphones, internet connectivity, and urban lifestyle shifts will likely drive further growth in quick commerce sales.

Conclusion: Quick Commerce’s Emerging Role in FMCG

Quick commerce in India is sprinting ahead as a growth engine for FMCG players, offering attractive margins and a rapidly expanding consumer base. While it remains a small slice of the overall sales pie, its strategic importance is growing, especially in urban markets.

As platforms deepen their reach and companies fine-tune their digital marketing strategies, quick commerce is set to capture a larger share of FMCG sales in the years ahead. This evolution will also prompt changes in retail strategies, distribution models, and consumer engagement tactics, making quick commerce an integral part of India’s FMCG future.

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