Tuesday, 02 January 2024 12:17 GMT

Indian Q-Commerce Sector Predicted To Grow 40% Annually


(MENAFN- KNN India) New Delhi, Sep 6 (KNN) Industry analysts predict strong growth for India's food delivery, quick-service restaurants, and Q-commerce (quick commerce) companies, driven by supportive policies and rising consumer demand.

The recent Goods and Services Tax (GST) reforms are expected to ease compliance and reduce tax-related pressures on companies. This will help improve margins and create a more efficient operating environment for food-tech firms.

Analysts believe this will allow companies to expand services faster and reach new markets more effectively.

Alongside policy support, changing consumer habits are fueling growth. A surge in discretionary spending, particularly among urban households, has led to increased demand for quick deliveries and ready-to-eat options.

Consumers are now spending more on convenience-driven services, making food delivery and Q-commerce an integral part of daily consumption.

The Q-commerce sector, in particular, has shown rapid progress. In 2024, more than two-thirds of all e-grocery orders in India were placed via quick-commerce platforms. These accounted for about 10% of total e-retail spending, reflecting the segment's expanding role in India's retail ecosystem.

Analysts estimate that Q-commerce could grow at over 40% annually until 2030, supported by deeper penetration into smaller towns and diversification into new product categories.

With growing investor confidence, higher consumer demand, and favorable reforms, experts say India's food delivery, quick-service restaurants, and Q-commerce companies are poised for sustained expansion.

This momentum is expected to reshape the food and retail delivery landscape over the coming years.

(KNN Bureau)

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