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August 6, 2026
Pritha Pahari, The Core
5 Aug 2026
Saurav, a 27-year-old resident of Navi Mumbai, has bought the same tub of whey protein for three years, same brand, same 1kg pack, same monthly ritual after his gym membership renews.
Last month, at checkout, the price had jumped by nearly a thousand rupees. He assumed it was maybe a limited-time markup. But when he checked his order history, he noticed that the price had been going up for two to three months until it crossed a threshold that made him realise that whey protein has gradually become more expensive.
India is the world’s largest milk producer, yet it imports most of its whey protein because its dairy sector was never built to make cheese, the one thing that whey needs to exist.
That gap is now colliding with a global protein boom, driven partly by weight-loss drugs that leave patients needing more protein.
The result is a price rise that is now reaching the local pharmacy and fitness stores, and one that is unlikely to recede.
The Price Move
Research firm, The Daily Datum analysed Keepa price data for 11 whey protein SKUs on Amazon and found an average price increase of 32% and a median rise of 27% across varying tracking periods.
Keepa is a third-party price-tracking tool for Amazon, it logs a product’s price history over time by continuously scraping Amazon’s listing pages, so you can see a graph of how a specific SKU’s price has moved (sales, hikes, restocks) going back months or years.
Prices of different types of proteins i.e. blends, isolates and concentrates have all moved by similar amounts, and so have Indian D2C brands and long-established imported ones.
In protein powder terms, concentrates are ~70-80% protein (less processed, retain more fats/carbs), isolates are ~90%+ protein (more filtered, less lactose/fat), and blends mix two or more protein types (e.g., whey + casein, or whey concentrate + isolate) to combine benefits like fast and slow absorption.
The one outlier, MuscleBlaze’s premium Biozyme Performance line, has roughly doubled, but excluding it, the category average is still 26%, about five times India’s headline food inflation, which stood at 5.32% year-on-year in June 2026, according to government data.
The retail prices are only a reflection of what is happening with the raw ingredients needed for whey.
Imported whey protein concentrate landed in India at roughly Rs 700–800 per kg in 2024; by mid-2026, the industry estimates put it at Rs 2,300–3,000 per kg, a rise of over 200%.
Brands have absorbed much of that shock through smaller pack sizes and blended formulations rather than passing it straight through, which is why retail prices have risen a fraction of what the raw material has.
For scale, India’s protein supplement market (powders, bars and ready-to-drink shakes together) is put at roughly $860 million to just over $1 billion in 2025, though the exact figure depends a lot on which research firm and which product categories you ask (IMARC Group and Grand View Research land in that range but don’t agree closely). That compares with a global protein supplements market well above $30 billion.
Not A Farmed Commodity
“You don’t milk a cow for whey. You milk a cow for milk. And then you have to make cheese,” said Rajiv Mitra, Strategic Advisor, Sonai Dairy, a Maharashtra based dairy.
Whey from cheese-making is “sweet whey”, protein-rich and further processed through filtration and expensive drying infrastructure into the 80–90% protein concentrate that ends up in a gym-goer’s scoop.
“This is a structural bottleneck,” Mitra said. “It’s not a kind of seasonal commodity up and down.” New filtration and drying plants can take two to four years to build, with much of the machinery imported.
This is where India’s dairy habits work against it.
Devangshu Dutta, founder of the retail consultancy Third Eyesight, while speaking to The Core explained that globally, about 95% of whey protein comes as a co-product of Western-style hard and semi-hard cheeses such as cheddar and mozzarella. India’s dairy sector, by contrast, is built around paneer, curd, khoya and ghee.
Paneer is made by acid coagulation, which produces “acid whey”, lower in protein and higher in minerals, and not suitable for concentration into protein powder.
“Unless consumption of western-style cheeses grows dramatically in India, co-production capacity will remain low,” Dutta said.
Mitra makes the same point from the kitchen rather than the factory floor: squeeze lemon into milk to make paneer at home and the liquid that separates out simply gets drained. “Traditionally, for years, while we have been the highest producer of milk, our consumption pattern is such that we do not harness the whey that is produced,” he said.
That liquid is easy to overlook because it looks like nothing more than watery runoff, but it isn’t a waste.
When milk curdles, the solid part becomes paneer or cheese, and the yellowish liquid left behind, the whey, still carries a meaningful share of the milk’s protein along with lactose and minerals.
Filtered, concentrated and dried at an industrial scale, that liquid becomes the powder sold in tubs as whey protein concentrate or isolate. In most Indian kitchens it is simply poured away; in a cheese-and-whey-processing economy like the US or Europe’s, it is captured and turned into a saleable ingredient.
That gap between what gets thrown out and what gets processed is the crux of the shortage.
Why It’s Getting More Expensive
India imports an estimated 80–90% of its supplement-grade whey, mostly from the US, Europe, New Zealand and Australia, in dollars. The rupee has weakened sharply against the dollar over the past few years, from around 74 to nearly 97 by July 2026, adding another 10–15% to landed cost before customs and tax.
India’s own import policy adds a further layer of cost. Dairy is among the most protected sectors in the Indian economy: duties on whey, cheese and milk powder run 30–60% depending on the product, India offers no duty-free quota for dairy, and the government has repeatedly kept dairy outside trade negotiations, including in the interim India–US trade agreement reached in early 2026.
US suppliers, the world’s largest whey producers, also frequently fall short of the vegetarian-rennet certification Indian food rules require, which further narrows where Indian buyers can import from. None of this caused the current price spike, but it does mean India pays a built-in premium over the raw international price, and there is no sign of that premium being negotiated away soon.
Global demand, meanwhile, keeps climbing while milk output in the US and Europe grows only slowly. The global whey protein market is put at roughly $9.7 billion in 2025 by one widely cited estimate (Grand View Research).
It has clearly grown a lot over the past decade, but market-research firms disagree fairly widely on the starting point and pace of that growth.
Mitra pointed to a newer driver on top of the usual sports-nutrition demand: GLP-1 weight-loss drugs.
“Doctors have asked patients to consume more protein” to offset muscle loss from the drugs, he said, and as patents expire and generics spread to India and China, “the demand-supply gap is definitely going to increase further.”
(Some industry commentary points to semaglutide patents lapsing in markets including India and China around 2026, which would open the door to cheaper generics, though this detail comes from a single industry source and is worth treating as a general trend rather than a confirmed date.)
He laid out what he called a three-pronged squeeze: India’s own GLP-1 users will need more protein even as domestic production stays constrained; the US and Europe, which used to export surplus whey, will increasingly consume it themselves as their own GLP-1 use grows; and India’s roughly 30% vegetarian population, which depends on dairy for protein, will lean on it even harder.
Ingredient suppliers and dairy processors abroad broadly back this account, at least directionally, though they are careful not to call GLP-1 the sole cause. In wire-service and trade-press interviews, executives at FrieslandCampina and Lactalis have cited the weight-loss drug trend by name as a reason for new investment in high-protein whey processing, and StoneX’s dairy consulting head has said the food industry simply lacks the capacity to turn whey into the concentrates and isolates the market now wants. Those are real, on-record statements, but they’re a handful of quotes, not a market-wide survey, so it would be a stretch to read them as proof that GLP-1 is now a dominant driver.
The macro numbers, where they exist, suggest a more modest picture: one investment-bank estimate (cited secondhand rather than pulled from the original research note) put GLP-1’s impact on total European calorie demand at around a quarter of one percent, since only a low single-digit percentage of the population is on the drugs so far.
Separately, some retail-data providers have reported that households with a GLP-1 user spend noticeably more on protein-rich products than matched non-user households.
Taken together, traditional sports-nutrition and everyday-fitness demand almost certainly remains the larger base of whey consumption, GLP-1 use is a real and fast-growing add-on that industry executives say is starting to show up in sourcing decisions, but nobody has published a solid, independently verified number for how much of the current price spike GLP-1 specifically accounts for. Anyone who tells you an exact percentage is guessing.
Who Feels It First?
Large manufacturers are better insulated than small ones.
“The bigger players always get into long-term contracts,” Mitra said. Smaller brands and contract manufacturers, reliant on buying at spot prices, “get squeezed first.”
Big companies can also cross-subsidise from other product lines for a while, he said, but that isn’t a permanent fix: “Businesses are not there to absorb cost. Businesses are there to make profit.” Margin compression, in his words, “is never sustainable.”
An executive at HealthKart, which owns MuscleBlaze, was quoted saying in an Financial Express article that whey concentrate costs have more than tripled in two years and are “quickly approaching 4x,” and that the company has raised prices while absorbing part of the increase itself.
The founder of Wellbeing Nutrition was quoted in the same Financial Express article saying whey isolate prices have roughly tripled over the same period, and that whey, which makes up 15–20% of the company’s revenue, is now being promoted less actively as a result.
The founder of The Whole Truth, a clean-label brand that also uses cashews and cocoa, was quoted in the same article in Financial Express, saying input costs across its ingredient list have surged and that the company has pushed through several price increases, including a 15–20% hike on protein bars, rather than change its recipe.
Budget-focused brands such as Nakpro, AS-IT-IS and Avvatar have not made similar public statements, but their pricing sits in the same band as the rest of the market, and their category positioning, cheaper, no-frills whey aimed at price-sensitive buyers, looks consistent with the same cost pressure, even without a direct quote confirming it.
Smaller sachet and single-serve formats, which let a brand hold a lower shelf price even as the cost per kilogram rises, have also become more common across the category over the past year, though this is more an observed pattern than something brands have explained on the record.
Consumers shouldn’t expect quick relief either. “Commodity prices normally fall before retail prices,” Mitra said.
Existing contracts and retail pricing cycles are sticky, so the consumer will see relief much later than any drop in the raw material.
Some Headroom, No Quick Fix
Both experts see room for India to produce more eventually.
Dutta noted that rising protein-consciousness and GLP-1 adoption are giving Indian manufacturers “headroom for growth,” though feedstock constraints will remain a challenge.
Mitra talked about the scale needed: new capacity requires a couple of hundred crores of investment and years to commission, on top of a slow, generational shift in how Indians eat dairy. Cold storage for hard cheeses, which need months of ageing, is also still being built out.
Some of that investment is already happening.
Amul has launched a whey protein line priced well below imported brands, part of a broader push by Indian dairy majors to move into higher-margin, value-added products; cheese and whey can carry margins of 25–45%, against much thinner margins on liquid milk.
Parag Milk Foods already sells whey protein under its Avvatar brand and has positioned itself as a nutrition company rather than a pure dairy one.
Milky Mist, which is preparing a stock market listing, has said it will use part of the proceeds to add new production lines for whey protein concentrate, yoghurt and cream cheese at its Tamil Nadu plant.
Cheese-focused players including Schreiber Dynamix, Britannia Bel Foods and Lactalis India are separately expanding capacity, since more cheese production is what generates more whey as a by-product in the first place.
None of these projects will materially add to supply in the next year or two; dairy-processing plants of this kind typically take two to four years from investment to commissioning, and most industry estimates suggest India’s domestic whey production still covers only a small fraction of what the country consumes.
Neither expert expects plant-based protein to substitute for whey in a hurry. “Whey still offers a superior amino acid profile” and better digestibility, Mitra said, predicting diversification and hybrid blends rather than replacement.
What Could Break the Cycle?
Globally, the shortage is widely described by dairy analysts as a processing bottleneck rather than a milk shortage: milk supply itself has been broadly stable, and cheese production, which generates whey, has continued at normal levels. The constraint is the specialised filtration and drying capacity needed to turn liquid whey into the concentrated, dried powder the supplement industry uses, and that capacity takes years to build.
Major producers, including Glanbia, Fonterra, Arla, Tirlán and Idaho Milk Products, have announced billions of dollars of new whey-processing investment in the US, Europe and New Zealand over the past year. Most of these projects are expected to come online through 2027, not before, so global analysts generally don’t expect meaningful supply relief until late 2026 at the earliest, and more likely 2027.
US milk production is forecast to keep growing gradually into 2027 as well, which should help at the margin, though rising input costs (energy, feed, financing) are also squeezing dairy farmer margins in exporting regions, which cuts the other way.
For India specifically, easing would most likely need several things to move together over the next two to three years: new domestic processing capacity from players like Amul, Parag, Milky Mist and the cheese-focused majors actually coming online, rather than merely being announced; global WPC and WPI supply catching up with demand as the 2026–27 capacity wave lands; a stabler or stronger rupee, since a large share of India’s whey is still imported and priced in dollars; and some change to India’s own tariff and certification structure on dairy imports, which currently adds cost on top of the global price and shows no sign of loosening given how firmly successive governments have kept dairy out of trade deals.
GLP-1-driven demand would also need to plateau rather than keep accelerating as drug prices fall and generics spread.
Even if all of that happens, retail prices in India are unlikely to fall quickly. Brands are currently absorbing part of the cost increase rather than passing all of it through, which means a chunk of any future relief in the raw material would likely go toward rebuilding margins before it reaches the shelf.
Contracts, inventory cycles and psychological pricing (brands are usually slower to cut prices than to raise them) add further lag. Mitra’s framing captures this: raw material costs typically fall before retail prices do, and the gap between the two can run into quarters, not weeks.
What experts keep coming back to is that this has stopped being a niche fitness-industry story. “
This is no longer just about dairy,” Mitra said. It is now about healthcare, pharmaceuticals, nutrition, overall food.
(Published in The Core)
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July 13, 2026
Sowmya Ramasubramanian, Vaeshnavi Kasthuril (MINT)
Bengaluru, 13 July 2026
India’s vertical quick-commerce startups across categories like baby care, medicines and fashion, backed by venture capital heavyweights, are beginning to redefine what “quick” means.
For some, the race is no longer about cutting delivery times by a few more minutes. Instead, founders are increasingly talking about better assortment, sharper curation, stronger supply chains and healthier unit economics as the factors that will decide whether the model survives.
Baby care platform Ozi, backed by Blume Ventures and RTP Global, has settled on a roughly 60-minute delivery promise. Founder Amit Sah told Mint the company would rather optimise for “quality selection” than chase ultra-fast deliveries, arguing that customers today are looking for reliable availability and curated choices rather than insisting on receiving products in 10 minutes.
Lightspeed-backed fashion startup Slikk is pursuing a similar path. Founder Akshay Gulati said the company’s focus since inception has been building a wide catalogue rather than aggressively acquiring users.
The shift comes as the sector enters a more pragmatic phase. Quick fashion startup Blip shut down within a year of launch last June, while rival Klydo has recently pivoted its business model, raising questions about the viability of firms in every category.
The crop of vertical quick commerce startups—focused on rapid delivery within a single, specific product category—has largely emerged over the past two years, inspired by the explosive growth of grocery-focused pioneers such as Blinkit, Swiggy Instamart and IPO-bound Zepto, which have accustomed consumers to receiving groceries and everyday essentials within minutes.
Other prominent startups include Plazza for quick delivery of medicines, Instafix for mobile repairs within minutes, and Dazzl for at-home salon services.
Kalaari Capital noted in its 2025 report that quick commerce had already captured about two-thirds of online grocery orders and around 10% of India’s overall e-retail spending in 2024, transforming consumer behaviour and building the infrastructure for specialised vertical players to emerge.
“Speed was never a real moat but became a hygiene factor once every significant player could promise 10-30 minute delivery,” said Devangshu Dutta, founder and chief executive of consultancy Third Eyesight. “Assortment depth, availability, trust, and sustained price-value have been, and will remain, the true differentiation levers. For categories such as medicines and baby products, credibility and compliance outweigh saved minutes, apart from urgent purchases.”
“Unit economics can become healthier only where there’s a clear reason for frequent and repeated purchases. Groceries and medicines are repeat, low consideration categories, while fashion is high consideration, driven by fit, styling and browsing. The best quick commerce categories have low or no returns and high order frequency, whereas rapid fashion delivery faces high return rates due to product mismatch against customer expectations (sizing, fit, fabric and colour),” Dutta said.
Different categories, different playbooks
While fashion startups are investing heavily in discovery and inventory refreshes, Ozi believes the opportunity in baby care lies in curation and premiumisation.
Sah said each sub-category within baby care presents a different operational challenge. Consumables require deep availability of long-tail brands, while fashion depends on filtering products for quality rather than listing everything available. Ozi, which delivers wipes, diapers, and baby food, deliberately curates brands instead of maximising assortment, targeting parents willing to pay slightly more for trusted products.
“The customer behaviour has shifted from discovery first to search first,” Sah said, adding that shoppers today are not necessarily looking for ultra-fast delivery, but nor are they willing to wait several days. “A modern-age customer values quality. They are happy to pay an 8-10% or 12% differential, but they need quicker access to better brands and better assortment.”
Fashion startups argue that their challenge is different altogether.
Gulati said Slikk has built its business around supply rather than customer acquisition, claiming that stronger assortment has helped steadily reduce acquisition costs. The company replaces 30-40% of inventory in every dark store each month and is expanding neighbourhood by neighbourhood instead of spreading rapidly across cities.
Slikk might also consider introducing private brands for apparel, given their higher margins, Gulati said.
Bengaluru-based fast-fashion e-commerce startup Knot, which raised $5 million from 12 Flags and Kae Capital in December 2025, is investing heavily in back-end technology. Its app captures user preferences through swipe-based interactions, while its dark stores carry much wider assortments than horizontal quick commerce operators – offering a vast, multi-category collection of goods – and customise inventory based on local demand.
“We look at fashion as a data science problem and not really an intuition problem,” co-founder and chief executive officer (CEO) Archit Nanda said.
Nanda said fashion’s long-tail nature—which relies on selling small quantities of several unique products rather than depending on a few popular items – means inventory commonality across dark stores is significantly lower than grocery, requiring specialised supply chains and hyperlocal merchandising.
The profitability test
The changing strategies also reflect growing investor scrutiny of unit economics.
Slikk’s Gulati said investors continue to back the category but increasingly want proof that businesses can balance growth with profitability rather than relying on heavy customer acquisition spending. He believes execution in neighbourhood-level operations, assortment and brand partnerships will ultimately determine the winner.
Knot’s Nanda said that fashion combines high average order values with healthy margins, making the category attractive despite its complexity.
However, analysts believe that not every vertical is equally suited to the model.
“Looking ahead, horizontal cross-subsidy will work better, with established, well-capitalised players (Myntra’s M-Now, Nykaa Now) including quick delivery into an existing catalogue and logistics network rather than building it standalone. For narrow, high-trust verticals (medicines, baby care) where the value is availability and authenticity rather than impulse, and where margins can support the delivery cost, quick commerce can work,” Dutta noted.
Kalaari Capital’s 2025 report on vertical quick commerce similarly argued that specialised players will win by solving category-specific pain points, with assortment depth, customer experience, and category expertise emerging as key differentiators.
(Published in MINT)
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July 12, 2026
Nivedita Mookerji, Business Standard
12 Jul 2026
Recently, fast moving consumer goods distributors posed some existential questions to the government: Have the rules changed for foreign-owned ecommerce firms? With that, the All India Consumer Products Distribution Federation made a plea to the government to examine if foreign-funded ecommerce and quick commerce players can run inventory-led businesses through warehouses and dark stores.
The question mark is around the operating model of the big daddies of retail — both from America — under the current foreign direct investment (FDI) guidelines. One of them is Bentonville-headquartered Walmart, which holds a controlling stake in e-commerce major Flipkart. And the other is Seattle-based Amazon. Both Flipkart and Amazon are upping their quick commerce play, a development that the Indian retail ecosystem players fear would hit them hard.
For context, foreign e-commerce companies are allowed to do business through the marketplace model as opposed to the inventory-led format. Marketplace operators such as Amazon and Flipkart (Walmart) are permitted to have sellers on their platforms and those sellers own the goods (inventory) which are sold to customers. Indian companies in the e-commerce business can own the goods and sell them directly to the consumers.
This is not the first time that there’s noise around the business practices of foreign majors and their alleged violations of the rulebook in relation to anything from the legality of the operating model to predatory pricing and deep discounting. The protests of the domestic traders against foreign players — that started decades ago with an agitation against the government’s multi-brand retail policy — have resulted in a series of amendments in the FDI rules, intervention of the competition watchdog CCI (Competition Commission of India), Supreme Court observations, making of laws and keeping them in abeyance. But, the complaints — from different quarters of the domestic business — have remained.
Devangshu Dutta, founder and CEO of consulting firm Third Eyesight, argued that since 1996-97, when foreign investment in retail was first banned, governments of different political hues have been walking the regulatory tightrope with respect to foreign investment in retail, whether offline or online. “The government’s caution on retail policy was aimed at protecting domestic interests, though it is arguable whether it was for the small retailer, or the larger corporates who had identified this as a growth sector at the time,’’ Dutta said.
(Published in Business Standard)
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July 9, 2026
Neethi Lisa Rojan & Vaeshnavi Kasthuril, MINT
Mumbai/Bengaluru, 8 July 2026
The collapse of the US-Iran peace deal in less than a month has rattled India’s consumer sector, reviving fears that higher oil prices and fresh supply-chain disruptions could squeeze demand just as companies were betting on a broader recovery.
The renewed uncertainty followed US President Donald Trump’s declaration on Wednesday that the peace deal with Iran was effectively over, alongside Washington’s decision to end a sanctions waiver on Iranian energy supplies. The market reaction was swift. The Nifty FMCG Index fell 2.49% on Wednesday, underperforming the broader market as all 15 constituents declined, led by Dabur India, Hindustan Unilever, and Tata Consumer Products, whose shares fell 3-4% each. The benchmark Nifty50 ended 2.12% lower after renewed hostilities in West Asia pushed crude prices higher.
Executives and analysts said companies have little room to respond immediately, leaving them to closely monitor devel opments as risks to costs and consumer spending mount. “I don’t think companies can react on this kind of a short notice,” said Arvind Singhal, chairman of consulting firm The Knowledge Company. “It takes 2-6 months to make any change in your plans and strategy. I think right now the Indian FMCG (fast moving consumer goods) companies will be watching the progress of monsoon more carefully than the Strait of Hormuz.”
Even after the US-Iran peace deal took effect on 18 June, consumer companies were unlikely to have expected immediate relief, analysts said.
“While everyone hoped for a cessation in hostilities, smart management teams would work on the realistic expectation that even with a ceasefire, pent-up supply chain input costs need to be absorbed over time, and pricing plans must be factored accordingly,” Devangshu Dutta, founder and chief executive of consulting firm Third Eyesight, said.
“Given that the conflict zone is active, I don’t think there is any immediate likelihood of pricing freeze or reductions, even though demand in rural areas as well as in lower-income urban segments is likely to be hit from both sides ― earnings and expenses.”
Large consumer goods companies including Dabur, Emami and Godrej Consumer had recently told investors they remained confident about consumer demand, including in rural markets.
But the renewed rise in crude prices, coupled with erratic monsoons marked by rainfall deficit in some regions and flooding in others, threatens to complicate that outlook. Higher fuel costs could lift prices of crude-linked raw materials such as plastic packaging and ingredients used in soaps and creams, while persistent inflation could push consumers to cut discretionary apne ding and trade down even on staples.
Major consumer companies had already raised prices or reduced grammage across packaged food, beverages and personal care products in the March quarter.
“As far as the crude prices are concerned, that is probably the only variable where the government has to decide as far as pricing of crude or the petroleum in India is concerned,” Singhal said.
That comes at an awkward time for India’s largest consumer companies, including Hindustan Unilever, which had earlier this year told analysts they intended to drive growth through higher volumes rather than price increases. A renewed bout of inflation could undermine that strategy.
(Published in MINT)
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May 27, 2026
Writankar Mukherjee and Aanya Thakur, Economic Times
Kolkata/Mumbai, 27 May 2026
Quick commerce has become the dominant online sales channel for India’s top fast-moving consumer goods (FMCG) companies, with Dabur India and Britannia Industries among others now deriving up to 75% of their digital sales from 10-minute delivery platforms.
Industry executives said quick commerce is reshaping consumer buying habits and increasingly cannibalising sales from all other channels, including ecommerce platforms, modern trade and kirana stores, even as large online marketplaces and retailers expand into the segment.
Latest data from companies including ITC Ltd, AWL Agri Business, Tata Consumer Products and Parle Products showed quick commerce accounted for 60-75% of their total online sales in FY26, rising sharply from less than half a year earlier.
For Britannia and Tata Consumer Products, quick commerce now contributes more than 70% of online sales, while the share climbed to 75% for Dabur in the fourth quarter ended March from 50% in the December quarter.
Executives said expanding assortments and demand for instant replenishment are accelerating the shift. “Quick commerce has been gaining ground with several ecommerce companies such as BigBasket, Amazon and Flipkart, as well as retail chains like Reliance Retail, entering the space,” said Mayank Shah, vice-president at leading biscuits maker Parle Products. “Given consumers’ demand for convenience and immediate replenishment, quick commerce has emerged as a strong growth opportunity for them.”
Quick commerce accounted for 65% of online sales of Parle Products and AWL Agri Business last fiscal, compared with 50% and 45%, respectively, in FY25. ITC derived 58% of its online sales from this channel in FY26.
Frequent Purchases
Grocery-shopping are now centred around frequent top-up purchases through the week.
“Quick commerce has facilitated a grocery shopping habit which already existed – more frequent purchases. These companies are now also looking to improve profitability by expanding into higher-margin and impulse-driven categories,” said Devangshu Dutta, founder and CEO of Third Eyesight, a consultancy in consumer space.
While the channel is already significant for FMCG companies in the top 8-10 cities, it is expanding rapidly into smaller towns as operators such as Blinkit, Zepto and Swiggy Instamart widen their footprint.
Premium Push
The channel has also allowed companies to push premium products, executives said.
“While on marketplaces and traditional e-commerce platforms we were heavily skewed towards staples, the shift to q-commerce is helping us premiumise our assortment and sell far more indulgent categories,” Britannia Industries chief commercial officer Vipin Kataria told analysts earlier this month.
The transition has led to a threefold increase in sales of adjacency categories for the biscuits and dairy products maker, he said.
Kataria expects quick commerce’s contribution to the company’s total online sales to rise to 85% from 70% currently.
Most FMCG companies reported 70-100% year-on-year growth in quick commerce sales in FY26, making it the fastest-growing channel for the industry for the past two to three years. Executives expect the trend to continue.
Dabur India global chief executive officer Mohit Malhotra said beverages, foods, personal care and home care are currently the strongest-performing categories in this channel.
Saugata Gupta, managing director of Marico, said quick commerce is likely to be especially dominant in foods, while specialised ecommerce players such as Myntra and Nykaa remain strong in personal care.
The maker of Parachute, Saffola and Livon brands is strengthening its quick commerce supply chain through digitisation, automation and AI-based forecasting, Gupta said.
(Published in Economic Times)
