The grocery retail market is still in its nascent stage with only 8% organized section and 92% unorganized grocery retail. The unorganized sector is predominantly dominated by kirana stores, general stores, and street markets. According to a report, India has more than 12 million kirana stores that still follow the traditional business practices.
The organized section includes the department stores, discount stores, supermarkets, hypermarkets, e-tailers and cash-and-carry formats.
The food industry in India is growing tremendously and it is driven by the Supply side, the Demand side and the Regulatory channels.
To increase the organized market ratio and to bring the traditional stores into the mainstream of the business, infrastructure development, omnichannel marketing, easy credit availability and private labeling are few of the major change-driving agents on the supply side.
Similarly, the change-driving agents on demand side include increased urbanization, increasing disposable income, growing population, inclination towards healthy and hygienic lifestyle, consumer awareness and penetration of technology into the lives to name a few. These factors are majorly consumer-oriented and represent the shifting lifestyles.