Indian E-Commerce Giants Lose Grip On Consumer Brands as 10-Minute Delivery Surges

FMCG constitutes nearly 80% of India’s $600 billion grocery market.

Quick commerce platforms in India are rapidly evolving from experimental delivery models to essential distribution channels for the country’s largest consumer goods companies, with the sector’s annual gross merchandise value projected to nearly triple to $14 billion this year, up from $5 billion in 2024.

While quick commerce continues to retreat or consolidate in many global markets, India’s 10-minute delivery platforms are cementing their position as vital sales channels for consumer packaged goods companies, capturing significant portions of their online business.

Hindustan Unilever, India’s largest consumer goods company, now attributes one-third of its e-commerce sales to quick commerce platforms, with 10% of all its ice cream sales nationwide coming through these channels. Nestle India reports that quick commerce accounts for half of its e-commerce business, which makes up 8.3% of total sales.

The FMCG sector’s swift adoption of quick commerce marks a significant inflection point for India’s retail ecosystem. With companies like Hindustan Unilever and Nestle — companies typically cautious in altering distribution strategies — embracing 10-minute delivery platforms, the shift carries disproportionate weight given that FMCG constitutes nearly 80% of India’s $600 billion grocery market.

“Quick Commerce used to contribute to about 15% of the revenues for Beverages as far as last year is concerned, now it has gone up to 30% to 32%,” Dabur said in a recent analyst call.

The sector has consolidated around three main players — Blinkit (owned by Zomato), Instamart (operated by Swiggy), and YC Continuity-backed Zepto. Blinkit maintains its market leadership with approximately 40% share, operating about 1,050 dark stores as of Q3FY25 with plans to reach 2,000 by December 2025.

FMCG companies are also yielding higher margins through quick commerce platforms, with some noting 100-200 basis points improvement compared to traditional e-commerce marketplaces. This margin advantage is driving brands to prioritize these channels in their digital strategy, according to Bernstein.

“In terms of contribution, as a sum, quick commerce has already entered the top five. But in terms of growth, quick commerce is growing much faster compared to other ecommerce platforms,” a brand executive in a recent earnings call.

The model has particularly benefited direct-to-consumer brands like Honasa, which reported its quick commerce sales growing at “100% plus YoY growth.” Quick commerce platforms typically maintain a 30-40% mix of these new-age brands in their assortments, with Blinkit having 39% new-age brands, while Zepto has 31% and Instamart 33%, Bernstein wrote in a note this week.

Quick commerce platforms have expanded well beyond groceries, increasingly selling beauty products, electronics, and other categories traditionally dominated by ecommerce giants. Their dark stores now offer around 9-10,000 SKUs, compared to just ~1,000 at traditional kirana (neighborhood) stores, with some locations replenishing stock multiple times daily.

While still concentrated in the top 25-30 Indian cities, the sector now represents approximately 50% of India’s online grocery market. Bernstein projects that quick commerce market could reach $100 billion in India in a decade.