Summary of this article
India's online retail market may cross $90 billion in 2026.
Grocery sales may overtake mobile phones as India's second-largest online category.
Festive online sales could reach $16 billion, driven by everyday purchases.
India’s online retail market is expected to cross $90 billion in 2026, up 22-24 per cent from the previous year. Much of this growth is likely to come from everyday purchases, such as groceries, beauty products, and household items, while higher mobile phone prices are holding back sales.
Online retail sales reached around $38 billion in the first half of 2026, up about 25 per cent from the same period last year. This was the strongest first-half growth in four years, according to a report by Redseer Strategy Consultants.
Grocery Sales May Move Ahead Of Mobile Phones
Grocery is expected to become the second-largest category in India’s online retail market after fashion this year. Sales in the category may grow 50-53 per cent in 2026, taking its share of online retail sales from 16 per cent last year to 19 per cent.
Mobile phones, on the other hand, are losing ground. The category made up around 19 per cent of online retail sales in 2025, but its share is expected to fall to 16 per cent in 2026. Mobile sales did not grow in the first half of the year, and full-year growth is expected to be just 2-3 per cent as higher prices discourage buyers.
Beauty and personal care sales may grow 36-39 per cent this year, while home and furniture sales are expected to rise 31-34 per cent. Along with grocery, these categories could account for 40 per cent of India’s online retail sales in 2026, the report said.
Electronics Sales Rise
Online electronics sales saw a growth of 22 per cent in the first half of 2026 itself, but following a 5 per cent fall during the same period last year.
The report found that buyers made purchases earlier than usual for various reasons. Goods and Services Tax (GST) on large appliances was cut from 28 per cent to 18 per cent in September 2025. Discounts on air conditioners after changes in energy efficiency ratings also helped sales. An LPG shortage pushed up demand for induction cooktops, while some buyers purchased laptops ahead of expected price increases.
Electronics sales growth is expected to slow to 12-15 per cent in the second half of 2026.
Online Festive Sales May Touch $16 Billion
Online retail sales in the 30-35 days before Diwali are expected to reach $15-16 billion, up around 25 per cent from the previous year. This would be the highest festive season growth in five years. Grocery sales during this period may rise 48-50 per cent, while beauty and personal care sales could grow 35-40 per cent. Home and furniture sales are expected to increase 32-35 per cent, compared with 5-7 per cent growth for mobile phones.
Mobile phones and electronics together may account for 46 per cent of festive season online sales, down from 51 per cent last year. Higher prices are expected to limit demand for these products.
