April 13, 2024
Quick E-Commerce

Quick Commerce Market set for Rapid Growth Driven by Convenience Trend

The Global Quick E-Commerce (Quick Commerce) Market is estimated to be valued at US$ 44.81 Billion in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024 to 2030. Quick commerce refers to deliveries of groceries and daily essentials within a few minutes or hours through mobile applications and websites. It enables customers to order products for instant delivery through hyperlocal fulfilment centers located close to their locations. This creates a seamless and highly convenient shopping experience for time-pressed customers in metro cities.

Key Takeaways

Key players operating in the Quick E-Commerce Market are Shire Plc., CSL Limited, Octapharma AG, LFB S.A., Biotest AG, Grifols, S.A., SK Plasma Co., Ltd., Baxter International Inc., Green Cross Corporation, and Fusion Health Care Pvt. Ltd., among others. These players are focusing on expanding their hyperlocal fulfilment centers and fleet of delivery personnel to cater to the growing demand for quick delivery of groceries and daily essentials.

The growing demand for convenience among customers is a major factor driving the growth of the quick commerce market. Time-pressed customers, especially in metro cities, prefer on-demand delivery of daily items rather than visiting retail stores. Furthermore, the COVID-19 pandemic has accelerated the adoption of contactless delivery models and solidified consumer behaviour shift towards online grocery shopping.

Global Quick Commerce Market Share players are expanding their presence across major cities worldwide to tap the large potential offered by the convenience-driven customers. Companies are diversifying product offerings and improving technological capabilities to strengthen their foothold. Strategic collaborations with retailers and merchants are helping players expand inventory selection and coverage area. The quick commerce market is expected to witness robust growth worldwide over the next few years.

Market Key Trends

One of the major trends in the quick commerce market is the proliferation of ‘dark stores’ or micro-warehouses in residential areas and business districts across major cities globally. Players are aggressively opening hundreds of these hyperlocal fulfilment centers equipped with storage facilities and fleets of delivery personnel for efficient order picking and fast delivery. Having a dense network of dark stores enables players to provide highly targeted deliveries within 15-20 minutes to customers located within a 1-2 km radius, satisfying their need for immediacy. This proximity-based model is driving the success of quick commerce business globally.

Porter’s Analysis
Threat of new entrants: Quick e-commerce requires high setup and operational costs for building the necessary infrastructure like warehouses, delivery fleets and staff. This poses significant barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power in the quick commerce market due to availability of alternatives and standardized products. However, buyers prefer convenience offered by quick delivery.

Bargaining power of suppliers: Established quick commerce players have strong bargaining power over suppliers due to their scale of operations and demand for quality products and on-time deliveries.

Threat of new substitutes: Alternatives like regular e-commerce and offline retail stores pose minimal threat as quick commerce fulfills immediate needs through ultra-fast deliveries not offered by substitutes.

Competitive rivalry: The global quick commerce market is highly competitive due to presence of established players and new entrants. Players compete on parameters of delivery time, product availability, reliability and pricing.

Geographical Regions
Asia Pacific accounts for the largest share of the global quick commerce market in terms of value due to high demand from densely populated countries like India and China. Strong internet penetration, changing lifestyles and ease of using mobile apps drive the adoption of quick commerce in Asia Pacific.

Europe is projected to be the fastest growing region during the forecast period attributed to rapid expansion of quick commerce startups and their ultra-fast delivery capabilities in major countries including UK, Germany, France and Netherlands preferred by busy consumers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it