Why gourmet groceries have become quick commerce's next growth engine

After competing on delivery speed, quick commerce companies are betting on gourmet foods, imported products and premium brands to increase average order values and improve profitability

India’s quick commerce market is undergoing a broader strategic shift, with competition moving towards premium products.  Zepto is set to launch Select, a premium grocery offering; Blinkit has expanded its Gourmet Store; and specialist players such as FirstClub and Handpickd have built their businesses around premium groceries. Reports suggest that Flipkart Minutes is planning a premium grocery range, while Amazon Now is piloting Gourmet Picks.

  

India’s quick commerce market is expected to grow from about $10–11 billion currently to around $65–70 billion by 2030, according to Bain & Company and Flipkart’s How India Shops Online 2025 report. The next growth engine is customers who spend more, buy premium products and remain loyal for longer.

   

"When anything becomes mainstream, companies start segmenting customers and building differentiated propositions for specific cohorts. The premium consumer has now become commercially viable enough for quick commerce platforms to serve with a dedicated offering," said Ravi Kapoor, partner and leader, retail and consumer sector at PwC India.

 

According to Kapoor, affluent consumers were among the earliest adopters of quick commerce because they had higher disposable incomes and were digitally savvy. These customers have become regular users, and offering them a curated experience is the logical next step.

Why platforms are moving upmarket

In the early years, the success of the quick commerce industry depended on expanding dark stores, reducing delivery times and acquiring customers. Those investments helped create one of the world's fastest-growing retail formats.

 

But as the market matures, investors are placing greater emphasis on profitability rather than growth at any cost. That is prompting platforms to focus on improving average order value (AOV), increasing customer lifetime value and generating better contribution margins.

 

For quick commerce companies, AOV has become one of the most closely watched metrics because delivery costs remain largely fixed irrespective of basket size.

 

"You are paying the rider a fixed amount for every order. It is not a percentage of the basket value. So there is a very clear intent to increase AOV. Expanding assortments is one way of doing it. Premiumisation is another," Kapoor said.

 

According to a recent Bernstein report, the sector ended FY26 with an annualised net order value run-rate of around $14 billion. Blinkit, Instamart and Zepto, the industry’s top three players, accounted for approximately $12 billion, while Amazon, Flipkart and BigBasket contributed the remaining $2-2.5 billion. Most large quick commerce platforms now report average order values in the ₹500-700 range, with investors increasingly tracking improvements in basket size as a key indicator of profitability, the report says.

Bigger baskets and better margins

According to Kapoor, premium grocery offers several economic advantages. Imported foods, artisanal products, premium dairy, speciality coffee, gourmet chocolates and organic staples generally command higher prices than mass-market products. Consumers buying these products also tend to purchase multiple complementary items, resulting in larger baskets.

 

Kapoor estimates that premium households can generate three to four times the average order value of a typical quick commerce basket, while maintaining broadly similar ordering frequency. His estimate suggests that premium baskets could be worth ₹1,500-2,000 or more if a typical quick commerce order is around ₹500-700, significantly improving the economics of each delivery.

 

He added that around 12 to 14 per cent of Indian households fit this premium consumption profile, making them an attractive segment for platforms looking to improve economics.

 

Premium customers are generally less price-sensitive, making them more receptive to curated assortments, exclusive launches and subscription-led loyalty programmes. Premium brands also spend significantly on marketing and customer acquisition, opening new advertising and partnership opportunities for platforms.

What it means for FMCG companies

According to industry experts, the shift could reshape how consumer goods companies launch new products.

 

Traditionally, introducing a premium product involved significant investments in modern trade, distribution and marketing without immediate consumer feedback. However, quick commerce changes that equation.

 

Kapoor believes the platforms' access to first-party consumer data can help FMCG companies identify demand at a neighbourhood level, shorten innovation cycles and test new products more efficiently.

 

"It reduces the barriers brands traditionally faced in taking innovation to market. The feedback loop becomes much shorter and much more precise because platforms know exactly which consumers are buying what," he said.

 

That could encourage brands to introduce premium coffees, gourmet foods, imported cheeses, healthy snacks, speciality dairy products and premium beauty products on quick commerce platforms before expanding into traditional retail.

 

"Brands are starved of first-party consumer data. Quick commerce platforms have that information. Using those insights more proactively can help companies develop products that are much better aligned with consumer demand," Kapoor said.

 

The model is similar to the "category champion" approach once seen in organised retail, where retailers and brands jointly developed category strategies using shopper insights.

Challenges remain

Premiumisation, however, is not without risks. The addressable market remains relatively small, concentrated largely in metro cities and affluent urban neighbourhoods. Premium products often require more complex inventory management and stronger cold-chain capabilities. Imported and speciality foods also move more slowly than everyday grocery items, increasing inventory risks.

 

An economic slowdown could also affect discretionary spending on premium products more than essential groceries.

 

That said, the industry's priorities are clearly evolving. The first phase of quick commerce was about delivering groceries in minutes. The next could be about increasing the value of every order and capturing a greater share of household spending.