The e-commerce channel, which includes quick commerce platforms, has recorded over 30 per cent volume growth year-on-year across 32 FMCG categories in metro cities in the last five consecutive quarters, per data sourced from NielsenIQ by businessline. This growth was seen in 52 metros with one million plus population and is being driven by convenience and impulse categories as well as monthly basket categories.

Infact, e-commerce contributed about 85 per cent of the incremental sales value to overall retail channel (offline +online) in these 52 metros during the September quarter in 2024, compared to 15 per cent from offline channels. This proportion was almost the opposite in September quarter in 2023. 

FMCG categories

Kanaka Bhagwat, head of e-commerce – India, NielsenIQ, “E-commerce channel, which includes quick commerce platforms, has been witnessing a significant growth over the past five quarters across the 52 metros. The salience of e-commerce has been even higher in the top eight metros.” In  the top eight metros, share of e-commerce across 32 FMCG categories to retail channels (includes traditional trade, modern trade and e-commerce) reached a double-digit share (10.8 per cent) in the 12 month period ending September 2024. It  garnered a growth of 33 per cent versus year-ago period. She added that there is growing salience of quick commerce in the e-grocery space and has altered the habits of consumers.

Across 52 metros and 32 FMCG categories, share of e-commerce channel to retail channels is pegged at 8.2 per cent up 38 per cent in the 12 months period ended September versus year-ago period.

“While e-commerce is growing rapidly, it is important to note that kirana stores still hold a significant portion of the FMCG landscape. Infact during the September quarter, traditional trade channel saw a growth of 6 per cent. The future will see a coexistence of both models, with each catering to different consumer needs and preferences,” Bhagwat added.

Ready-to-eat , salty snacks, refined edible oils, biscuits and packaged atta have emerged as among the fast growing categories in terms of sales value growth during the 12 month period ended September over the corresponding period on e-commerce channel, the NielsenIQ data revealed.

Premium products

E-commerce channel is also witnessing higher salience of premium products compared to offline channels. Online channel’s contribution for premium products is pegged at close to 50 per cent in terms of value and is growing 3x faster compared to offline channel (MAT March 24)

“Both premium and luxury segments are seeing a lot of traction on e-commerce channel enabling them to target affluent consumers. Companies often test launch their premium products online to gauge consumer feedback before taking them offline,” Bhagwat explained.

NIQ taps into a panel of 3.5 lakh online shoppers in India to analyse online shopping habits.