New Delhi, Apr 10 (KNN) India’s online retail market reached an estimated USD 65–66 billion in gross merchandise value (GMV) in 2025 and is projected to grow at over 20 per cent annually to touch USD 170–180 billion by 2030, according to a joint report by Bain & Company and Flipkart.
E-retail GMV expanded 19–21 per cent in 2025, with growth accelerating through the year on the back of improving macroeconomic conditions and stronger consumer sentiment, IANS reported, citing the report.
As per the report, private consumption growth rose to 10.5 per cent in 2025 from around 8 per cent during 2022–24, supported by GST cuts, income tax relief, easing inflation, and lower lending rates. This led to robust second-half growth of 22–24 per cent and an estimated 23–25 per cent expansion in the first quarter of 2026.
India is expected to emerge as a major global consumption engine, capturing one in every eight incremental consumption dollars over the next five years.
Quick Commerce Gains Rapid Traction
Quick commerce, defined by delivery timelines of under 30 minutes, has seen rapid expansion, doubling annually over the past two years to reach USD 10–11 billion GMV in 2025. It is expected to scale up significantly to USD 65–70 billion by 2030.
Despite this surge, traditional e-retail is expected to remain dominant, accounting for 60–65 per cent of the overall market by the end of the decade.
Expanding User Base and Seller Ecosystem
The number of online shoppers in India has more than doubled over the past five years to reach 290–300 million in 2025. This growth has been supported by expansion in the seller ecosystem and deeper penetration into smaller cities and towns.
Gen Z Driving Incremental Growth
Gen Z consumers accounted for 40–45 per cent of e-retail shoppers in 2025 and contributed nearly half of incremental orders. Their spending per user is growing 2.5 times faster than other cohorts in metropolitan areas.
This segment is shaping new consumption patterns, with a preference for influencer-led discovery, immersive video content, and instant credit options, especially in categories such as lifestyle, beauty, and electronics.
Changing Shopping Behaviour
Manan Bhasin, Partner, Bain & Company said, “Shopping behavior in quick commerce is distinct; high-intent shopping missions drive a higher incidence of search, faster checkout velocity, and conversions. Sessions last less than five minutes, half the duration of traditional e-commerce journeys.”
(KNN Bureau)
