India Direct-to-Consumer (D2C) Logistics Market Size (2024 - 2029)

The Indian Direct-to-Consumer logistics market is experiencing significant growth, driven by the increasing adoption of the D2C model, which has been accelerated by the pandemic. The expansion of e-commerce, enhanced digital infrastructure, and a tech-savvy millennial population are key factors contributing to this growth. The shift in consumer behavior towards online shopping has heightened the demand for efficient logistics and last-mile delivery services, prompting D2C companies to rely on third-party logistics providers to manage operations effectively. This trend is reshaping the market landscape, as traditional FMCG brands face competition from emerging D2C startups, further underscoring the expanding logistics potential within the sector.

Market Size of India Direct-to-Consumer (D2C) Logistics Industry

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India Direct-to-Consumer (D2C) Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.00 %
Market Concentration Low

Major Players

India Direct-to-Consumer (D2C) Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Direct-to-Consumer Logistics Market Analysis

The Indian Direct-to-Consumer logistics market is estimated to register a CAGR of more than 8% during the forecast period.

  • Over the past few years, the D2C model gained traction in India due to the growth in e-commerce penetration, the rise in digital infrastructure, the growing millennial population, an increase in consumer tech awareness, and a growing number of D2C startups and their diverse offerings. However, the much-required push due to the Covid-19 outbreak helped the D2C sector reach a tipping point. A series of lockdowns to contain the pandemic, people's fear of going out (FOGO), and the social distancing mandate brought about a paradigm shift in consumers' mindset, urging them to opt for digital platforms. As a result, the D2C market is expected to grow exponentially in the forecast period.
  • The D2C model is becoming increasingly popular in India. Companies such as Sugar and Mamaearth benefited greatly from the digital D2C model, resulting in exponential development. Established FMCG brands such as Himalaya, ITC, and Hindustan Unilever are experiencing severe competition from upstart D2C businesses such as Mamaearth, Pee Safe, Moms Co., and others. Many companies are turning to this model because the D2C e-commerce model literally "cuts out" the middleman.
  • Before the pandemic began, only a few direct-to-consumer companies raised money, approximately 2-3 companies per week on average. With COVID-19 spreading, companies started investing in the D2C models. Around 146 companies raised USD 500 million in the first half of 2020. With the change in consumer behavior due to COVID-19, more customers turned online to purchase the products. The need to meet rising demand becomes more important. But most D2C sellers may need more resources to manage end-to-end operations independently. It is when they turn to third-party logistics and fulfillment companies for effective order administration, streamlined operations, and flawless shipment last-mile delivery. It is where efficient logistics companies and last-mile delivery services are gaining prominence.
  • Companies such as Shiprocket, Shipway, Pickrr, and others, D2C enablers, helped hundreds of enterprises streamline these procedures to expand swiftly. The growing D2C industry is expanding logistics potential and changing customer buying and delivery habits.

India Direct-to-Consumer Logistics Industry Segmentation

D2C/Direct-to-Consumer (or Consumer-Direct) is a business model for manufacturers, retailers, or distributors to market, sell, and ship their products directly to consumers without relying on traditional brick-and-mortar storefronts or other intermediaries.

India's D2C Logistics market is segmented by end-user (fashion, consumer electronics, beauty, personal care, home decor, and other end-users). The report offers market size and forecasts for India's D2C Logistics market in value (USD) for all the above segments.

By End user
Fashion
Consumer electronic
Beauty and Personal Care
Home decor
Other end users
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India Direct-to-Consumer (D2C) Logistics Market Size Summary

The Indian direct-to-consumer (D2C) logistics market is experiencing significant growth, driven by the increasing adoption of e-commerce and the expansion of digital infrastructure. The D2C model has gained popularity due to the rising millennial population, increased consumer tech awareness, and the proliferation of D2C startups offering diverse products. The COVID-19 pandemic acted as a catalyst, accelerating the shift towards digital platforms as consumers sought safer shopping alternatives. This shift has led to a surge in demand for efficient logistics solutions, as D2C companies increasingly rely on third-party logistics providers to manage their operations and ensure timely delivery. The market is characterized by intense competition, with established FMCG brands facing challenges from emerging D2C players, and companies like Shiprocket and Pickrr playing a crucial role in streamlining logistics processes.

The D2C logistics market in India is poised for substantial growth, supported by robust investments and a solid e-commerce infrastructure. The market is competitive, with both local and international players such as Delhivery, DHL eCommerce, and Unicommerce contributing to its expansion. The fashion category is expected to see significant growth, driven by an expanding shopper base from Tier 2+ cities and first-time online shoppers. The market's growth is further bolstered by initiatives like Flipkart's Boost program, which supports early-stage brands in various aspects of e-commerce operations. Recent investments and acquisitions, such as Delhivery's investment in Vinculum and CEVA Logistics' acquisition of Stellar Value Chain Solutions, highlight the ongoing efforts to enhance D2C offerings and capabilities in the region.

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India Direct-to-Consumer (D2C) Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Government Regulations and Initiatives

    3. 1.3 Technological Trends in the Market

    4. 1.4 Insights into the E-commerce Industry

    5. 1.5 Insights into the Courier, Express, and Parcel Industry (CEP)

    6. 1.6 Industry Value/Supply Chain Analysis

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End user

      1. 2.1.1 Fashion

      2. 2.1.2 Consumer electronic

      3. 2.1.3 Beauty and Personal Care

      4. 2.1.4 Home decor

      5. 2.1.5 Other end users

India Direct-to-Consumer (D2C) Logistics Market Size FAQs

The India Direct-to-Consumer (D2C) Logistics Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Delhivery, DHL Ecommerce , Shiprocket, Unicommerce and Pickrr are the major companies operating in the India Direct-to-Consumer (D2C) Logistics Market.

India Direct-to-Consumer Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)