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Kiranas Dominate India's Grocery Market Despite Quick Commerce Rise

Kirana stores continue to be the backbone of India's grocery economy, holding an estimated 91% market share in 2025. Their resilience is attributed to serving the high-frequency, low-value purchases of low-to-mid-income households. While quick commerce is rapidly growing as a disruptor for online shoppers, it is not optimized for the mass-market's value-driven consumption patterns. The total grocery market is projected to grow to Rs 84.3 trillion by 2030, with kiranas expected to retain a dominant ~86% share.

Key Points: Kirana Stores Hold 91% of India's Grocery Market: Report

  • Kiranas hold ~91% market share
  • Quick commerce is a disruptor for online shoppers
  • Market to reach Rs 84.3 trillion by 2030
  • Mass market driven by small, frequent purchases
2 min read

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

A new report reveals kirana stores retain over 90% of India's grocery market, serving mass-market demand better than quick commerce platforms.

"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. - RedSeer Report"

New Delhi, January 30

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

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Reader Comments

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Shreya B
Quick commerce is great for emergencies, but for daily dal-chawal, it's the local bhaiya's shop. The prices are often better for loose items, and you can buy exactly one onion or two tomatoes. That's the real Indian middle-class reality.
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Nikhil C
Respectfully, while the report is accurate, it glosses over the challenges kiranas face. They struggle with inventory management, getting good wholesale rates, and competing with flash sales on apps. They need more support, not just reports praising their resilience.
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Priya S
My mom still does her shopping from the kirana. For her, it's also a social visit. She chats with the aunties there, gets local news. It's a community hub, not just a store. That value is immeasurable.
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David E
Interesting read. Visiting India, I was amazed by the efficiency of these small stores. The service is incredibly personalized. In the West, we lost this decades ago to big supermarkets. There's a lesson here about retail economics and community.
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Aman W
The key is "low-AOV baskets". When your budget is tight, you buy daily. You can't order a week's groceries online and pay a huge delivery fee. Kirana stores understand the cash flow of the common man. Jai Hind!

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