Mint Explainer | Is quick commerce forcing legacy FMCG players to rethink growth?

What are legacy FMCG players saying about quick commerce?

For the 92-year-old Hindustan Unilever Ltd, the niche platform is already showing signs of growth potential. Quick commerce accounts for about 3% of the company’s more than ₹60,000 crore, implying annual quick commerce sales of more than ₹1,800 crore. The company has created a separate, focused team for quick commerce because the channel demands a distinct set of capabilities.

This is the case with other legacy FMCG companies as well. Parachute oil maker Marico said quick commerce is one of the primary drivers of growth for its India business.

Emami’s share of organised and new-age channels in its domestic mix has risen from 11% in FY20 to 29% in FY25. Quick commerce now contributes about 20% of its total e-commerce business as of the December quarter of FY26. Tata Consumer Products Ltd has also seen a sharp rise in the quick commerce business.

So, how big has quick commerce become as a channel?

Quick commerce is still a small part of India’s overall grocery market, but it is expanding very fast. According to a January 2026 report by consulting firm Redseer titled “The AOV Trap”, the sector is expected to grow at 37–39% annually between 2025 and 2030, from about ₹1 trillion in 2025 to ₹5.8 trillion by the end of the decade.

It already accounts for 47% of all online grocery sales, and that share could rise to 67% by 2030. User adoption has also surged, with monthly transacting users jumping from 23 million in 2024 to 51 million in 2025.

In simple terms, while quick commerce may represent only around 7% of India’s total grocery market by 2030, it is already a dominant growth engine within online grocery and is reshaping how urban consumers buy everyday essentials.

How has quick commerce changed traditional FMCG distribution?

Quick commerce has altered both how consumers shop and how FMCG companies operate. What began as a convenience-led channel is now absorbing a growing share of routine grocery missions, forcing companies to rethink distribution, inventory and product design.

The channel’s rapid growth is fundamentally disrupting supply chains and retail patterns, particularly for FMCG and beauty categories.

For consumer-goods makers, this has meant reallocating capital towards faster-moving SKUs, tailoring assortments for dark stores, increasing digital advertising spend, and deepening data-sharing with platforms to improve availability and demand forecasting.

However, the shift remains largely urban because smaller cities do not have similarly densely populated neighbourhoods that allow quick commerce to scale up rapidly.

What are legacy FMCG players selling on quick commerce?

The channel remains predominantly grocery-led, with staples, packaged foods, and daily-use products accounting for the bulk of sales. However, companies are seeing strong traction in impulse and indulgence-driven categories.

According to Britannia’s CEO Rakshit Hargave, cakes, croissants, rusks and wafers are growing at nearly three times the rate of biscuits on quick commerce, driven by instant consumption occasions.

Alongside their core portfolios, several FMCG majors have also strengthened their presence in quick commerce by acquiring digital-native direct-to-consumer (D2C) brands, especially in segments such as health foods, nutrition, grooming and premium personal care, which already have strong online traction and are well-suited to fast-delivery platforms.

Girish K. Bagri, Emami’s chief financial officer, said the company is seeing strong traction across digital channels for its acquired D2C brands.

Is quick commerce here to stay?

Quick commerce is unlikely to replace traditional retail formats anytime soon, given its relatively small share of overall sales volumes compared with general trade, modern trade, and conventional e-commerce.

However, it plays a strategic role by catering to higher-spending urban consumers and enabling the sale of premium, high-margin products. Its relevance also differs widely by geography.

For FMCG and D2C brands, the channel offers strong visibility and recall but requires careful calibration of assortment and pricing across staples, discretionary items and impulse-led purchases. The model is also capital-intensive, giving larger FMCG companies a clear advantage over smaller players.