April 12, 2024
Quick E-Commerce

Global Quick E-Commerce (Quick Commerce) Market is Estimated to Witness High Growth Owing to Rise of Hyperlocal Delivery Services

The global quick commerce market involves delivery of groceries and daily essential items within a short span, usually within 60 minutes. Quick commerce relies on dark stores or micro-fulfillment centers located close to customers to reduce delivery time. The growing preference for instant gratification and convenience among consumers has boosted the demand for quick commerce services. Quick commerce appeals to customers looking to fulfill last-minute cravings or needing urgent supplies. The hassle-free online ordering and speedy delivery of quick commerce apps and websites have made them extremely popular, especially among busy urban households. The Global quick commerce market is estimated to be valued at US$ 44.81 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the global quick 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.

The key opportunities in the Global Quick Commerce Market Share include potential for market expansion into new cities and suburbs. Quick commerce firms are targeting tier-2 and tier-3 cities for market penetration. Furthermore, partnerships with retail chains provide an opportunity to leverage existing infrastructure and fulfillment networks.

Technological advancements such as autonomous delivery vehicles and drones can help quick commerce players reduce delivery times even further. Advanced order sorting and fulfillment systems based on AI and machine learning are being deployed to maximize efficiency in micro-fulfillment centers.

Market drivers

The primary driver for the quick commerce market is the rising demand for instant gratification among consumers. Customers want access to goods and services with minimum wait times. Another key driver is the growing preference for contactless deliveries amid the COVID-19 pandemic. Quick commerce addresses this need by leveraging a hyperlocal supply chain to enable deliveries within the hour without human contact.

Current challenges in Global Quick E-Commerce (Quick Commerce) Market:

The global quick commerce market is still at a nascent stage and faces multiple challenges such as high operational costs, lack of widespread availability and supply chain & logistical issues. Setting up the relevant infrastructure like micro-warehouses, hiring delivery personnel and procuring goods inventory at short notice requires huge capital investment. It is also difficult for quick commerce players to achieve economies of scale and offer services pan-city from the start. Moreover, maintaining real-time sync between online & physical inventories as well as meeting stringent delivery timelines of 30-45 minutes remains challenging due to limitations of the existing supply chain and last-mile connectivity networks in most cities.

SWOT Analysis
Strength: Hyperlocal warehouses enable super-fast deliveries within 15-30 minutes; Varied product assortment across grocery, household supplies and food categories catering to daily needs.
Weakness: High setup and operational costs due to short delivery windows and need for dense fulfillment infrastructure; Limited geographic coverage currently in major cities only.
Opportunity: Growing demand for instant delivery of daily essentials driven by busier lifestyles and preferences for on-demand services; Potential to leverage existing offline retail networks for stock replenishment.
Threats: Stiff competition from incumbent e-grocers and vertical delivered platforms; Disruption from new technologies like drone delivery in future.

In terms of value, the Asia Pacific region accounted for the largest share of over 40% in the global quick commerce market in 2024 led by countries like India, Singapore and Indonesia. These developing economies have high mobile & internet penetration along with adoption of on-demand services. North America was the second largest regional market, driven by mature e-commerce markets like the US and Canada.

The Middle East & Africa region is projected to register the fastest CAGR of over 15% during the forecast period of 2024 to 2030. This growth will be fueled by rising digital connectivity, young technologically-savvy populations and increasing acceptance of online shopping especially across urban areas in GCC countries and South Africa. Countries in Latin America and Eastern Europe are also anticipated to emerge as high-potential markets for quick commerce platforms going ahead.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it