Quick commerce feeds revenue appetite of packaged food companies

Taste for convenience serves up 50-100% growth for AWL Agri, Tata Consumer, Parle

Consumer appetite for impulse purchases and convenience is driving a rapid rise in the share of quick commerce (qcom) in food companies’ revenues. Packaged food makers are seeing growth of 50-100 per cent per quarter as more customers opt for faster deliveries and qcom platforms expand their reach nationwide. 

Companies such as AWL Agri Business, Tata Consumer Products, and Parle Products have all reported higher revenue contributions from the channel. Hindustan Unilever (HUL) has also seen its sales from qcom double. 

TCPL now derives 14 per cent of its revenue from qcom, up from 10 per cent in the April–June quarter (Q1) of 2025-26. “We are growing at 100 per cent in the qcom channel,” Sunil D’Souza, managing director and chief executive officer of TCPL, told Business Standard recently. 

D’Souza said that in Q1, the company’s revenue mix stood at 15 per cent from modern trade, 10 per cent from qcom, and 5 per cent from e-commerce, taking the total from these channels to 30 per cent. 

In the July–September quarter, Tetley Tea’s parent saw 16 per cent from modern trade, 14 per cent from qcom, and 7 per cent from e-commerce. 

“I’d think we’re probably ahead of the curve with higher percentage contributions from qcom and e-commerce. Our simple principle is: if the consumer is on qcom, you’d better be there,” D’Souza said. 

Shrikant Kanhere, managing director and chief executive officer of AWL Agri, told investors during a post-results call, “Our alternative channel has clocked more than ₹4,400 crore in revenue over the past 12 months, and it’s growing very fast — with qcom growing 80–85 per cent for us.” 

Angshu Mallick, executive deputy chairman at AWL Agri, added, “In the top 10 metros, particularly over the past year, there’s been a tremendous shift in buying patterns. Mom-and-pop stores haven’t been able to grow — their growth has been subdued or negative — but modern trade has grown 8–10 per cent, and qcom 50–80 per cent.”

 

Parle Products has also seen qcom emerge as a major growth driver. “The qcom channel has grown almost fivefold for us and now contributes nearly 6 per cent to overall sales,” said Mayank Shah, vice-president, Parle Products.

 

“This is because of the increased penetration of e-commerce and qcom players now servicing over 2,000 pincodes. It’s a major growth vector for us,” he added.

 

HUL, meanwhile, sees 7–8 per cent of its revenue coming from e-commerce, including qcom. In a post-results briefing, Ritesh Tiwari — then HUL’s chief financial officer and now global head of M&A and treasury at Unilever Plc — said that e-commerce and qcom continue to expand rapidly. “Our business on qcom more than doubled this quarter. That’s one platform where consumer traction has been strong,” Tiwari said. 

Adding flavour to the FMCG growth mix

• Tata Consumer Products: 14% of revenue now from instant delivery platforms
• AWL Agri Business: Channel growing 80–85% year-on-year
• Hindustan Unilever: Sales more than doubled via quick commerce in Q2
• Parle Products: 6% of revenue now served by segment