Amazon’s Daily Essentials business is emerging as one of the company’s most important growth engines in India, both in scale and strategic value, Nishant Raman, director – everyday essentials, Amazon India, told FE.
“Over the past four years, it’s been growing. If I look at year-to-date trends, the business, all formats put together, is growing at about 27-28% at our very large scale. Everyday Essentials would easily cater to more than a third of units sold on Amazon,” he said.
The segment spans FMCG categories such as staples, household cleaning, personal grooming, baby care, pet care, gourmet food, and health and wellness.
At the heart of this growth is a dual strategy: breadth of assortment and multi-format delivery, Raman explained. Amazon’s national Everyday Essentials network carries over 1.6 million products across categories, catering to both mainstream and long-tail demand.
Within the umbrella of Daily Essentials, Amazon Fresh operates as a basket-building service across hundreds of cities, while Amazon Now focuses on a tighter catalogue of 8,000-12,000 high-frequency products for quick delivery in select metros.
Protein Boom
Within the segment, sports nutrition and supplements has emerged as standout performers. Rising health awareness, experimentation with high-protein and functional foods, and a surge in homegrown D2C brands have fuelled demand, Raman said.
Sports nutrition grew 35% year-on-year and within the category whey proteins grew at 42%, plant and yeast-based proteins 46%, supplements 17% y-o-y, protein bars and drinks 677% (the last one on a much lower base), the company said.
Beyond Metros
The segment is gaining traction among the non-metro markets as well. Raman said that while metros continue to drive the lion’s share of demand in absolute terms, non-metros are leading year on-year growth.
“In metros, sports nutrition and supplements business is growing, metro cities are growing at about 47%, at 44% in Tier 1 cities, 36% in Tier 2 cities and 42% in Tier 3 cities,” he said.
Bengaluru had 59% annual volume growth across sports nutrition brands, while cities like Rudraprayag (258%), Lakshwadeep (212%), and West Kameng (at 414% y-o-y), Raman added.
The category is also seeing premiumisation play out with higher average selling price products in nutrition are growing significantly faster than the broader portfolio, indicating both up-trading and first-time adoption of specialised products, Raman added.
Non-staple food innovation is another driver. From organic and keto variants to infused peanut butters and specialised dips, customers are increasingly searching for customised dietary solutions.
However, challenges remain. The category includes both staples and discretionary items, making it partially exposed to macroeconomic uncertainty.
Amazon has observed a bifurcation in consumer behaviour: some shoppers are opting for smaller packs to manage cash flows, while others are choosing larger packs for better per-unit value. Balancing this mix without eroding average selling prices requires close coordination with brands.
Trust also remains critical. In categories involving ingestion or personal application, detailed product information, authentic reviews, brand-direct participation and flexible refund policies play a decisive role in encouraging trials, Raman said.