India's mass grocery continues to rely on Kiranas: Report

New Delhi [India], January 30 (ANI): Kirana stores continue to occupy a central role in India's grocery ecosystem by staying closely aligned with the consumption behaviour of the country's largest consumer base, according to a report by RedSeer Strategy Consultants.
It noted "Kirana stores retain their central position in India's grocery economy by remaining closely attuned to the consumption patterns of the country's largest consumer segment."
The report titled "THE AOV TRAP - Why India's mass grocery still leans on Kiranas" highlights that grocery remains India's largest and most essential retail category, and that kiranas continue to anchor it by serving the high-frequency, low-AOV baskets that define everyday spending for low- to mid-income households.
The report states, "India's grocery market is served by three distinct archetypes, of which kiranas continue to drive over 90% despite rapid growth of quick commerce."
Despite the rise of modern digital platforms, the report notes, "Kiranas form the largest part of India's grocery market, holding ~91% share in CY2025 and expected to retain a dominant ~86% by CY2030." This resilience is largely due to their ability to serve the largest share of the population, specifically those making frequent, smaller purchases.
While traditional retail holds its ground, the digital and large-format sectors are shifting toward speed and value. Quick commerce is rapidly becoming the primary disruptor for online shoppers, moving beyond niche items to handle routine household needs.
Highlighting this shift, the report states, "Slotted grocery baskets are now losing share even within online missions as quick commerce expands assortment and offers reliable, near-instant fulfilment."
As the total market climbs towards an estimated Rs 84.3 trillion by 2030, the competition will be defined by hypermarkets capturing value-conscious shoppers and quick commerce dominating the convenience-driven segment.
"The structural reality is that the bulk of Indian grocery consumption remains deeply value-driven, characterized by very small, frequent, low-ticket purchases shaped by affordability and cash-flow constraints. This mass-market demand is not optimised for quick commerce economics and continues to be better served by neighbourhood kirana stores, which will remain the backbone of everyday grocery shopping in India," says Nikhil Vora, Founder & CEO, Sixth Sense Ventures. (ANI)