E-commerce Festive Sales Poised to Hit Rs 1.2 Lakh Crore in 2025, Driven by Surging Consumer Sentiment
The Indian e-commerce sector is projected to reach Rs 1.2 lakh crore in online sales during the 2025 festive season, a 27% increase from the previous year. Urban and rural non-essential spending has increased significantly. Seven out of ten online shoppers plan to increase their festive spending. Quick commerce is expected to generate $1.60 billion in sales, accounting for 12% of total online sales. Amazon remains the preferred platform, with Blinkit rising to fifth position. Mobile and lifestyle categories are expected to account for 50% of festive sales, while grocery, appliances, and personal care categories are anticipated to gain market share.

*this image is generated using AI for illustrative purposes only.
The Indian e-commerce sector is gearing up for a record-breaking festive season in 2025, with online sales projected to reach a staggering Rs 1.2 lakh crore, according to a recent report by Datum. This forecast represents a robust 27% increase from the previous year, signaling a significant upturn in consumer spending and confidence.
Urban and Rural Spending on the Rise
For the first time in three years, urban consumer sentiment has turned positive, with non-essential spending witnessing a substantial 37.60% surge in July 2025. Even more impressive is the growth in rural areas, where non-essential spending has skyrocketed by 54.70%, reaching a two-year high. This resurgence in both urban and rural markets paints a promising picture for the upcoming festive season.
Increased Festive Spending Intentions
The report highlights a notable shift in consumer behavior, with seven out of ten online shoppers planning to increase their festive spending compared to 2024. This widespread intention to spend more during the festive season is likely to be a key driver behind the projected growth in e-commerce sales.
Quick Commerce Gains Momentum
Quick commerce is emerging as a significant player in the e-commerce landscape, expected to generate $1.60 billion in sales during the festive season. This represents approximately 12% of total online sales, underscoring the growing importance of rapid delivery services in the Indian market.
Platform Preferences and Category Shifts
Amazon continues to maintain its position as the preferred platform among consumers. However, the landscape is evolving, with Blinkit making significant strides to secure the fifth position, outpacing several competitors in the process.
While mobile and lifestyle categories are expected to account for 50% of festive sales, their market share is projected to see a slight decline. On the other hand, categories such as grocery, appliances, and personal care are anticipated to gain market share. This shift could be further amplified by potential GST rate cuts in these categories.
Category-wise Sales Distribution
Category | Market Share | Trend |
---|---|---|
Mobile and Lifestyle | 50% | Slight decline expected |
Grocery | Increasing | Potential boost from GST cuts |
Appliances | Increasing | Potential boost from GST cuts |
Personal Care | Increasing | Potential boost from GST cuts |
Quick Commerce | 12% | Emerging trend |
The e-commerce sector's projected growth to Rs 1.2 lakh crore in festive sales for 2025 reflects a robust recovery in consumer confidence and spending patterns. With both urban and rural consumers showing increased willingness to spend, and the rise of quick commerce, the Indian e-commerce landscape is poised for a transformative festive season. As categories like grocery and personal care gain prominence, and with potential policy support through GST rate cuts, the industry appears well-positioned for sustained growth and evolution in the coming years.