Will E-commerce Accelerate India’s $1 Trillion Digital Opportunity by 2030?

Bengaluru, June 26 (NationPress) Starting from a base of $30 billion in 2020, India's online commerce sector is anticipated to soar to $300 billion by the decade's end in 2030, paving the way for a $1 trillion digital opportunity in the country, as per a report released on Thursday.

This illustrates that online commerce is no longer a niche market but has firmly established itself as a leading force within the Indian retail environment, catering to a significant and expanding population, according to Bessemer Venture Partners.

“India presents a $1 trillion dollar digital opportunity. The rise of multiple consumer marketplaces and innovative brands over the past decade reflects the growing aspirations of an emerging India. We are incredibly optimistic about the potential for numerous consumer ventures to develop in the coming years,” stated Anant Vidur Puri, Partner.

A combination of increasing internet accessibility, evolving demographics, and favorable policy changes has enabled the ascent of modern consumer companies.

Looking ahead, the transformation of commerce marketplaces, content platforms, and shifting consumer aspirations will empower new enterprises to thrive in the Indian landscape, the report highlights.

India's flourishing online commerce sector has experienced remarkable growth in recent years.

Furthermore, the recent surge in quick commerce (q-commerce) has introduced a fresh aspect to the online retail ecosystem, dramatically changing how consumers access products.

Companies like BigBasket, Blinkit, Swiggy, and Zepto are at the forefront of this movement, showcasing the feasibility and consumer attraction of rapid delivery services. This segment is also witnessing the emergence of verticalized q-commerce, with startups like Snabbit, Swish, and Slikk addressing specific consumer needs.

Additionally, D2C brands are increasingly targeting an aspirational mass-premium audience, characterized by a demand for innovative, competitively priced, and high-quality products.

“India is witnessing a content revolution driven by diverse consumer appetites for entertainment, education, and gaming. With short attention spans and a plethora of accessible platforms across various interests, languages, and budgets, user engagement is quickened, facilitated by seamless microtransactions or autopay subscriptions,” the report pointed out.

Platforms are adapting to these shortened attention spans with engaging content. Over the last five years, short-form video platforms in India have seen a remarkable 3.6X increase in daily active users, competing with mainstream digital platforms.

Moreover, the rise of virtual tipping, UPI autopay, and other microtransactions is projected to reach $1.5 billion by 2029, illustrating the growth of UPI-enabled microtransactions that enable companies to explore diverse monetization strategies beyond advertisements.

There is a growing expenditure on organic food, protein, fitness devices, preventive healthcare, and wellness services.

The health-focused food and beverage (F&B) category has expanded from 11 percent to 16 percent of F&B expenditure and is expected to continue its upward trajectory as brands quickly adapt to this trend, the report stated.