by The global Europe Quick E-Commerce (Quick Commerce) Market is estimated to be valued at US$ 4.85 billion in 2022 and is expected to exhibit a CAGR of 38.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Europe quick e-commerce market involves sales of goods through mobile applications within a short span of delivery time, usually within 60 minutes. Quick commerce focuses on delivering a variety of goods including groceries and daily essentials to customers through a hyperlocal logistics network. Quick delivery platforms help consumers save time and increase convenience. The emergence of startups offering quick delivery services has disrupted the grocery shopping in European countries as consumers now expect instant deliveries.
Market key trends:
One of the major trends in the Europe quick e-commerce market is the rising preference for hyperlocal delivery models. Quick commerce startups are focusing on hyperlocal logistics networks by opening micro-fulfillment centers across cities for faster deliveries within a small radius. This enhances the delivery experience for customers. For instance, Getir has over 700 micro-fulfillment centers across Europe to enable delivery within 10 minutes. Further, growing online grocery shopping is also propelling the market growth. According to estimates, the online grocery market in Europe is expected to reach $150 billion by 2026 due to shift in consumer preferences towards digital channels post pandemic.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. With the popularity of convenience/instant delivery model is gaining traction, new startups are entering this space with innovative solutions. However, established players have strong brand recognition and funding which creates barriers.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have a variety of options to choose from across different quick commerce players. They can easily switch between brands based on offers and deals.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While few global brands dominate the supply chain, local suppliers also play a role in stocking neighborhood stores. This balance of power keeps bargaining power at check.
Threat of new substitutes: The threat of new substitutes is low as no direct substitute exist for 15-30 minute delivery model. However, traditional e-commerce continues to evolve rapidly with faster delivery options.
Competitive rivalry: The competitive rivalry is intense with existing global and local players continuously innovating their value proposition around delivery speed, stock assortment, and customer experience.
Key Takeaways
The Europe Quick E-Commerce (Quick Commerce) Market Size Share is expected to witness high growth, exhibiting a CAGR of 38.5% over the forecast period of 2023-2030. This is owing to increasing adoption of smartphone and internet penetration in the region coupled with consumer preference for instant gratification and convenience.
The growing urbanization in major European economies has resulted in modern lifestyles and time-pressed consumers who prefer on-demand quick delivery model. Countries like the UK, Germany, France are expected to lead the Europe quick commerce market. For instance, the UK market is projected to grow at 36% annually owing to high mobile/internet usage and busy work schedules leaving less time for grocery shopping.
Key players operating in the Europe quick e-commerce (quick commerce) market include Getir, Gorillas, Gopuff, Just Eat Takeaway, Delivery Hero, Jokr, Flink, Zapp, Uber Eats, Wolt, Bolt, and Deliveroo. Among these, Getir, Gorillas, and Flink have strong presence across multiple local markets due to their well-penetrated dark store networks and product offerings catering to daily Essentials.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
