E-Commerce and Q-Commerce to Power $1 Trillion Opportunity by 2030 A tailwind caused by factors such as internet penetration, evolving demographics, and policy changes is among the trends that have enabled the rise of new age consumer companies such as Swiggy, Urban Company, Boldfit, and more, said the report.
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Technology, demographic, and policy tailwinds from the past decade have fueled the rise of a USD 1 trillion digital opportunity, and user behaviours will shape consumer offerings in the future, said a report by the Indian arm of global venture capital firm Bessemer Partners.
A tailwind caused by factors such as internet penetration, evolving demographics, and policy changes is among the trends that have enabled the rise of new age consumer companies such as Swiggy, Urban Company, Boldfit, and more, said the report. It also added that going forward, the evolution of commerce marketplaces, content platforms, and changing consumer aspirations will power newer companies to win in the Indian ecosystem.
Anant Vidur Puri, Partner, said that the opportunity makes the sector exceptionally optimistic about the potential for many more consumer plays to emerge in the coming years."
"India presents a 1 trillion dollar digital opportunity. The emergence of multiple consumer marketplaces, platforms, and new-age brands in the past decade is a testament to the growing aspirations of an emergent India," said Puri.
However, a recent report by Bain & Company said that India's consumption and discretionary spending have faced headwinds in recent years, with private consumption growth slowing from 11 per cent pre-COVID (2017–19) to ~8 per cent post-COVID (2022–24). This decline is driven by higher inflation and a stagnation of real wages. The stress in consumption is evident in e-retail growth in 2024, being 10–12 per cent, compared to historical growth rates of over 20 per cent.
The Bessemer report said that India's India's burgeoning online commerce sector has witnessed a major expansion in recent years. Starting from a base of USD 30 billion in 2020, the sector is expected to reach USD 300 billion by the end of the decade in 2030, contributing to a USD 1 trillion digital opportunity. The report highlighted that it is "no longer a niche phenomenon catering to a small segment but has firmly established itself as a dominant force within the Indian retail landscape for a significant and growing share of the population."
The Indian e-commerce sector, along with the rise of the quick commerce sector was also highlighted by Kathryn McLay, CEO of Walmart International and parent company of Indian e-commerce giant Flipkart.
"Quick commerce has become a significant component of India's e-commerce sector, now comprising 20 per cent of the market and experiencing a robust annual growth rate of 50 per cent," said McLay.
The recent rise of quick commerce (q-commerce) has also introduced a new dimension to the online retail ecosystem, further revolutionizing the way consumers access goods, as highlighted in the report. Platforms such as BigBasket, Blinkit, Swiggy, and Zepto have leveraged the internet, demonstrating the viability and consumer appeal achieved through rapid delivery services. The segment is also experiencing the further trend of verticalized q-commerce emerging, with startups like Snabbit, Swish, and Slikk catering to niche needs.
India also experienced increased spending on organic food, protein, fitness gadgets, preventive healthcare, and wellness services. The report added that health-focused food and beverage (F&B) as a category has expanded from ~11 per cent to ~16 per cent of F&B spend and is expected to continue to increase as brands have been quick to adapt to this trend.
According to the report, platforms are adapting to the shorter attention spans with quick and engaging content. Over the past five years, short-form video platforms in India have witnessed a 3.6X growth in daily active users, competing with mainstream digital platforms.
The rise driven by features such as virtual tipping, UPI autopay, and other micro-transactions is expected to reach USD 1.5 billion by 2029, exemplifying the growth of UPI-enabled microtransactions, allowing companies to experiment with diverse monetisation models beyond just advertisements.
