Global Quick Commerce Market Report By Payment Mode (Cash on Delivery [COD], Online), By Product Type (Food and Groceries, Personal Care Products, Household Products, Consumer Electronics, Pharmaceuticals, Fashion and Apparel, Other Product Types), By Platform Type (Mobile Applications, Web-based Platforms, Hybrid), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Quick Commerce Market size is expected to be worth around USD 626.5 Billion by 2033, from USD 75.9 Billion in 2023, growing at a CAGR of 23.5% during the forecast period from 2024 to 2033.

Quick commerce is transforming the retail landscape by prioritizing speed and convenience. This market sector, often termed as Q-commerce, leverages advanced technology to deliver goods within an impressively short time frame, typically less than an hour. Businesses in this space are strategically positioning their micro-fulfillment centers in urban areas to facilitate rapid delivery.

The growing consumer preference for immediate gratification in purchases, such as groceries, meals, and everyday essentials, drives the demand for quick commerce services. Furthermore, advancements in logistics and mobile technology continue to bolster the efficiency and reach of these services, making them increasingly viable and popular.

The growth of quick commerce is propelled by several key factors. The surge in smartphone usage and internet penetration has made mobile commerce more accessible, thereby increasing consumer engagement with Q-commerce platforms. Secondly, the shift in consumer behavior towards instant delivery services, especially among millennials and Gen Z, is a significant growth driver.

The quick commerce (Q-commerce) market is experiencing rapid growth, driven by the rising demand for ultra-fast delivery services. This market has evolved as a response to the increasing consumer expectation for speed and convenience.

Approximately 41% of consumers are willing to pay extra for same-day delivery, with 24% prepared to pay more for delivery within a one- or two-hour window. This trend is particularly pronounced in urban areas, where the speed of delivery is a critical differentiator.

As a result, Q-commerce services have become an essential part of the e-commerce landscape, complementing traditional and same-day delivery models. The U.S. e-commerce market, for example, represented 22.0% of total retail sales, underscoring the significant role Q-commerce plays in the broader retail ecosystem.

In Europe, the adoption of Q-commerce is evident, with 44% of users placing orders two to four times a month. Heavy users, in particular, drive the market, placing orders more than five times monthly. In markets like India, the sector’s growth has been even more pronounced, with the gross merchandise value (GMV) reaching $2.3 billion in 2023, marking a 70% year-over-year increase.

This surge has been fueled by platforms such as Blinkit, Swiggy Instamart, and Zepto, which have effectively capitalized on the heightened demand for rapid delivery, particularly during and after the COVID-19 pandemic

The growth of Q-commerce is underpinned by several key factors. Firstly, the increasing consumer preference for fast delivery has been a significant driver. A 48% increase in e-commerce shipping over two years reflects this growing reliance on quick and efficient delivery.

The desire for near-instant fulfillment has led to the development of urban-located micro-fulfillment centers, reducing the distance between the customer and the delivery point, thus dramatically increasing delivery speed. These centers, typically ranging from 2,000 to 5,000 square feet, are pivotal in enabling delivery times of under 15 minutes, a key selling point for Q-commerce services.

Government investment and regulatory frameworks also play a crucial role in shaping the market. In the U.S., Q-commerce companies have attracted substantial investment, with the sector amassing $5.9 billion by mid-2021.

This influx of capital has enabled companies like Gopuff, which raised $1 billion in a single funding round, to scale rapidly and innovate in fulfillment processes. The regulatory environment, while still evolving, is likely to become more defined as the market matures, providing further opportunities for growth.

The Q-commerce market is poised for continued expansion as consumer demand for faster delivery intensifies. The combination of technological advancements, strategic investments, and evolving consumer behaviors suggests that Q-commerce will remain a key growth area within the broader e-commerce sector.

Key Takeaways

• The Quick Commerce Market was valued at USD 75.9 Billion in 2023 and is expected to reach USD 626.5 Billion by 2033, with a CAGR of 23.5%.
• In 2023, Cash on Delivery (COD) dominated the payment mode segment with 55.1%, reflecting its preference in many regions for secure transactions.
• In 2023, Food and Groceries led the product type segment with 23.5% due to high demand for essential goods.
• In 2023, Hybrid platforms dominated with 38.4%, offering users the convenience of both mobile and web-based access.
• In 2023, North America dominated the market with 33.9% share, due to advanced delivery infrastructure and consumer demand.

Payment Mode Analysis

Cash on Delivery (COD) dominates with 55.1% due to its preference in emerging markets where digital payment infrastructure is less developed.

The Quick Commerce Market’s division by payment mode primarily encompasses Cash on Delivery (COD) and Online Payments. A detailed analysis reveals that COD is the dominant sub-segment, holding a majority share of 55.1%. This dominance can be attributed to several factors.

Primarily, in many emerging markets, consumers prefer COD due to the lack of a robust digital payment infrastructure and the general distrust in online payment systems. Moreover, COD offers consumers the assurance of paying only upon receiving the product, which minimizes perceived risk and increases consumer confidence in the e-commerce platforms.

While COD continues to lead, the online payment sub-segment is rapidly growing, driven by the increasing penetration of internet and smartphone usage. This segment’s growth is catalyzed by the broader shift towards digitalization and the enhanced security features that reduce fraud and streamline transaction processes.

As financial technologies evolve and consumer habits shift, instant payments are expected to increase their market share, supported by the convenience they offer and the growing consumer familiarity with digital transactions.

In addition to payment security, the rise of online payments is further bolstered by promotional strategies like discounts on digital payment options and partnerships with financial institutions, which enhance the attractiveness of online payments. These trends suggest a gradual but significant shift in consumer preference, which could eventually balance the scales between COD and online payments in the quick commerce market.

Product Type Analysis

Food and Groceries dominates with 23.5% due to the rising demand for convenience and immediate delivery services.

In the Quick Commerce Market, the segmentation by product type includes a diverse range of categories such as Food and Groceries, Personal Care Products, Household Products, Consumer Electronics, Pharmaceuticals, Fashion and Apparel, and Other Product Types. Among these, Food and Groceries hold the largest market share at 23.5%.

This sub-segment’s dominance is driven by the consumer’s increasing reliance on quick commerce platforms for immediate and hassle-free delivery of daily essentials. The rising urbanization and busy lifestyles of modern consumers further fuel the demand for online food deliveries, emphasizing convenience and speed.

While Food and Groceries lead, other segments like Pharmaceuticals and Consumer Electronics are also significant, showing robust growth. Pharmaceuticals, for instance, have seen increased demand through quick commerce channels, particularly propelled by the health consciousness and need for immediate healthcare products during the pandemic. Consumer Electronics continues to grow due to the quick delivery demands of tech-savvy consumers who seek fast replacement and upgrading of gadgets.

Each non-dominant sub-segment contributes to the overall growth by catering to specific consumer needs and occasions. For example, fashion and apparel through quick commerce cater to last-minute purchases for occasions, reflecting a niche yet important market dynamic.

Platform Type Analysis

Hybrid platforms dominate with 38.4% due to their ability to offer flexibility in accessing quick commerce services via multiple devices.

In the realm of Quick Commerce, the market is segmented by platform type into Mobile Applications, Web-based Platforms, and Hybrid. Hybrid platforms, which integrate both mobile and web-based access, dominate the segment with a market share of 38.4%.

This dominance is largely due to the flexibility and accessibility that hybrid platforms offer. Users can seamlessly switch between devices, which is particularly appealing in a multi-device world where consumers might start a transaction on one device and complete it on another.

While Hybrid platforms lead, Mobile Applications are also essential, particularly in regions with high mobile penetration. Mobile-exclusive platforms cater effectively to on-the-go consumers who prefer the convenience of shopping directly from their smartphones.

Conversely, web-based platforms, although slower in growth compared to mobile, remain relevant for a segment of consumers who prefer larger screen interactions, particularly when browsing extensive product categories.

Hybrid platforms’ success can be attributed to their adaptability in meeting various consumer preferences, which ensures a broader market reach and caters to diverse shopping behaviors. As technology advances and consumer behavior evolves, the role of hybrid platforms is likely to become more pronounced, driving further innovation in the quick commerce market.

Key Market Segments

By Payment Mode

• Cash on Delivery (COD)
• Online

By Product Type

• Food and Groceries
• Personal Care Products
• Household Products
• Consumer Electronics
• Pharmaceuticals
• Fashion and Apparel
• Other Product Types

By Platform Type

• Mobile Applications
• Web-based Platforms
• Hybrid

Driver

Consumer Demand for Speed and Convenience Drives Market Growth

The Quick Commerce market is rapidly expanding due to a combination of evolving consumer expectations, technological advancements, urbanization, and competitive strategies. Consumers today increasingly prioritize speed and convenience, desiring immediate access to goods, particularly essentials like groceries and household items.

Technology plays a crucial role, with advancements in mobile apps, payment gateways, and real-time tracking systems making it easier for consumers to order and receive products swiftly. Urbanization further fuels this trend as densely populated cities create a demand for faster, more efficient delivery solutions that cater to the busy urban lifestyle.

Additionally, intense competition among retailers and delivery platforms has led to significant investments in logistics and infrastructure, resulting in reduced delivery times and enhanced service quality. Companies are innovating with micro-fulfillment centers and leveraging data analytics to predict demand and optimize inventory.

Restraint

High Operational Costs and Logistical Challenges Restrain Market Growth

The growth of the Quick Commerce market is constrained by several significant factors, including high operational costs, logistical challenges, intense competition, and limited profit margins. High operational costs are a major restraint, as maintaining a fast delivery network requires substantial investment in infrastructure, technology, and labor.

Logistical challenges also play a crucial role in restraining market growth. Ensuring rapid deliveries within tight timeframes demands a highly efficient supply chain, which can be difficult to achieve consistently, particularly in densely populated urban areas or regions with complex traffic patterns.

Intense competition in the Quick Commerce market further exacerbates these challenges. Many companies are vying for market share, leading to price wars that can erode profit margins. This competitive pressure forces businesses to continually invest in their operations, increasing costs without guaranteeing corresponding revenue growth.

Finally, limited profit margins present a significant restraint. The focus on rapid delivery often leads to increased expenses without proportionate increases in product prices, making it challenging for companies to maintain profitability.

Opportunity

Consumer Demand and Technological Advancements Provide Opportunities for Market Growth

The Quick Commerce market presents significant opportunities for growth, driven by the increasing consumer demand for fast delivery, technological advancements, urbanization, and changing shopping habits. Consumers are more inclined towards quick, convenient access to products, creating a demand that businesses can capitalize on.

Technological advancements are another key opportunity, as innovations in mobile technology, AI, and logistics can be leveraged to enhance delivery speed and efficiency. Companies can invest in technologies like predictive analytics to anticipate consumer demand and optimize inventory management. This not only meets consumer expectations but also increases operational efficiency.

Urbanization contributes to the opportunity by concentrating a large, tech-savvy population in densely populated areas. This urban demographic is more likely to use quick commerce services, providing a concentrated market for businesses to target.

Lastly, changing shopping habits, with a growing preference for online purchases, create an environment ripe for growth. As consumers continue to shift from traditional retail to online platforms, businesses that can offer rapid delivery will gain a competitive edge.

Challenge

Infrastructure Limitations and Regulatory Hurdles Challenge Market Growth

The Quick Commerce market faces several challenges that could impede its growth, including infrastructure limitations, regulatory hurdles, delivery inefficiencies, and fluctuating consumer demand. Infrastructure limitations are a significant challenge, as the rapid delivery model relies on well-developed networks of warehouses, transportation, and technology.

Regulatory hurdles also pose a considerable challenge. Different regions have varying laws and regulations governing delivery times, vehicle usage, and labor practices, making it difficult for companies to standardize their operations across multiple markets. Compliance with these regulations can be costly and time-consuming, potentially slowing down expansion efforts.

Delivery inefficiencies further complicate market growth. Ensuring that products reach consumers within the promised time frame requires highly efficient logistics and real-time inventory management. Any inefficiencies in this process, such as delays in fulfillment or last-mile delivery, can lead to customer dissatisfaction and damage to a company’s reputation.

Fluctuating consumer demand presents a challenge, as it makes it difficult for companies to maintain optimal inventory levels. During peak periods, demand can outstrip supply, leading to delays, while during slower periods, companies may struggle with excess inventory and wasted resources.

Growth Factors

Consumer Preferences and Technological Innovations Are Growth Factors for Market Expansion

The Quick Commerce market is witnessing robust growth driven by several key factors, including evolving consumer preferences, technological innovations, urbanization, and strategic investments by businesses. Consumer preferences have shifted towards convenience and speed, with more people valuing the ability to receive goods quickly, especially in urban areas where time is a premium.

Technological innovations are another critical growth factor, enabling businesses to streamline operations and improve delivery efficiency. Advancements in mobile apps, AI-driven logistics, and real-time tracking have made it easier for companies to manage orders, optimize delivery routes, and enhance the overall customer experience.

Urbanization is also contributing to market growth, as more people move to cities and adopt fast-paced lifestyles. The dense population in urban areas creates a concentrated market for quick commerce services, allowing companies to operate more efficiently and cater to a large customer base with minimal delivery times.

Finally, strategic investments by businesses in infrastructure, technology, and partnerships are driving the market forward. Companies are investing in micro-fulfillment centers and last-mile delivery solutions to meet the growing demand for rapid deliveries.

Emerging Trends

Sustainability and Personalization Are Latest Trending Factors Driving Market Growth

The Quick Commerce market is experiencing growth fueled by several trending factors, including a rising focus on sustainability, increased demand for personalization, the growth of subscription models, and the integration of AI and automation. Sustainability has become a major trend as consumers become more environmentally conscious.

Personalization is another key trend, with consumers expecting tailored shopping experiences. Quick commerce platforms are leveraging data analytics to offer personalized product recommendations and customized promotions. This trend enhances customer satisfaction and loyalty, driving repeat business and long-term growth.

The growth of subscription models is also trending, as consumers seek convenience and predictability in their shopping habits. Subscriptions for frequently purchased items, such as groceries and household essentials, are becoming increasingly popular, providing businesses with a steady revenue stream and improving customer retention.

The integration of AI and automation is transforming the Quick Commerce market. Companies are using AI to optimize delivery routes, manage inventory in real-time, and predict consumer demand more accurately. Automation in warehouses and fulfillment centers increases efficiency and reduces costs, enabling faster deliveries.

Regional Analysis

North America Dominates with 33.9% Market Share

North America leads the Quick Commerce Market with a 33.9% share, totaling USD 25.73 billion. This dominance is driven by a well-established e-commerce infrastructure, high consumer expectations for rapid delivery, and significant investments in logistics technology. The presence of major industry players and a tech-savvy population also contribute to this substantial market share.

The region’s advanced logistical networks and widespread adoption of digital payment systems enhance the efficiency and scalability of quick commerce operations. Additionally, the growing preference for online shopping, particularly in urban areas, bolsters demand for faster delivery services, making North America a critical hub for the industry.

North America’s influence in the Quick Commerce Market is expected to strengthen as technological advancements in AI and machine learning further optimize delivery processes. The continued expansion of urban areas and the increasing demand for convenience will likely propel the region’s market share even higher.

Regional Mentions:

• Europe: Europe holds a significant position in the Quick Commerce Market, driven by its strong regulatory framework and emphasis on sustainable delivery practices. The region’s commitment to reducing carbon emissions is shaping the development of eco-friendly quick commerce solutions.
• Asia Pacific: Asia Pacific is rapidly expanding in the Quick Commerce Market, fueled by large-scale urbanization and rising disposable incomes. Countries like China and India are at the forefront, leveraging quick commerce to meet the growing demand for fast and convenient delivery services.
• Middle East & Africa: The Middle East and Africa are emerging markets for quick commerce, with increasing investments in digital infrastructure and e-commerce platforms. The region’s focus on enhancing delivery networks is gradually boosting its market presence.
• Latin America: Latin America is progressively adopting quick commerce as part of its broader digital transformation efforts. The region’s growing e-commerce sector and investment in logistics technology are driving the expansion of quick commerce services, particularly in urban centers.

Key Regions and Countries covered іn thе rероrt

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

In the Quick Commerce Market, DoorDash, Inc., Delivery Hero SE, and Wolt emerge as the top three influential players. Each company has strategically positioned itself to capitalize on the rapid delivery demands of urban consumers.

DoorDash, Inc. stands out due to its expansive network and robust logistics framework, primarily in the U.S. The company has broadened its services beyond food delivery to include groceries and other essentials, adapting quickly to consumer demands and leveraging its existing infrastructure to ensure speedy deliveries.

Delivery Hero SE operates on a global scale, offering quick commerce solutions across various continents. Known for its aggressive expansion strategy, Delivery Hero has successfully acquired smaller players to enhance its market presence and diversify its service offerings. This approach not only strengthens its market reach but also enriches its customer base.

Wolt, although smaller in comparison, has made significant inroads in the European market with its user-friendly platform and efficient delivery system. Wolt’s focus on technology and customer experience has enabled it to maintain a strong competitive edge and appeal to a tech-savvy demographic.

Together, these companies significantly influence the quick commerce landscape by setting industry standards, pioneering innovations in delivery logistics, and enhancing the overall customer experience. Their strategic movements, including partnerships and technological advancements, shape the competitive dynamics and growth trajectories within the market.

Top Key Players in the Market

• DoorDash, Inc.
• Delivery Hero SE
• Wolt
• Bolt Technology OÜ
• Blink Commerce Private Limited
• Swiggy
• BigBasket
• Getir
• Zepto
• Flink SE
• Other Key Players

Recent Developments

• CLSA: In September 2024, CLSA projected a 41% upside for Zomato, expecting its Blinkit quick-commerce service to contribute significantly to earnings by FY25. Blinkit is set to achieve profitability by FY26​.
• JP Morgan: In September 2024, JP Morgan predicted a 40% upside for Zomato, driven by Blinkit’s scaling and monetization potential across major metro markets​.

Report Scope