New Delhi, Sep 17 (IANS) India’s online retail market to cross $90 billion in CY2026, growing 22-24 per cent year-on-year, driven by strongest online festive season in five years, a report said on Thursday.
The report from Redseer Strategy Consultants said the sector grew 25 per cent in H1 CY26 and that quick commerce could account for nearly one-fifth of festive sales.
The second half of the year will test the extent to which the pace can endure once the exceptional tailwinds of the first half recede, the report noted.
“Electronics benefited in H1 from the residual impact of GST cuts, an early summer and the BEE star-rating changeover, while some device purchases were brought forward ahead of anticipated price increases,” the report said.
Mobiles face pricing pressure from the sharp rise in memory costs, the report said, adding that mobiles and electronics will account for most of the moderation in online retail growth.
Festive demand should remain stronger across grocery, BPC, home & furniture and fashion.
The report projected 25 per cent growth in festive online retail in 2026, against 16 per cent in 2025.
Grocery is expected to grow 48-50 per cent, while home & furniture will rise 32-35 per cent, BPC by 35-40 per cent and fashion by 20-22 per cent. Mobiles, which contributed 33 per cent of festive online retail in 2025, is projected to grow 5-7 per cent, while electronics could grow 15-17 per cent.
“The expected festive momentum is likely to come from quick commerce & value commerce, which continue to outperform despite a large base, and everyday categories,” said Kushal Bhatnagar, Partner, Redseer Strategy Consultants.
Quick commerce channel has reached approximately $9 billion in the first half of the calendar year, having roughly doubled for three consecutive years.
During the festive season, quick commerce is projected to grow 110-120 per cent YoY, compared with 16-18 per cent for the rest of e-commerce, the report forecasted.
—IANS
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