Italy Quick Commerce Market Overview, 2029

Italy Quick Commerce Market Overview, 2029

The Quick Commerce market in Italy is characterized by its rapid growth and increasing consumer demand for convenience and speed in online grocery delivery. This sector encompasses services that promise delivery times of less than 30 minutes, often utilizing ghost kitchens or stores to optimize efficiency. Companies like Gorillas, Getir, and Glovo are notable players in this space, responding to the evolving preferences of Italian consumers who now prioritize quick access to groceries and everyday essentials. The regulatory environment for Quick Commerce in Italy is shaped by both national and European Union directives aimed at ensuring consumer protection and fair competition. The EU's Digital Single Market Strategy, which includes the Electronic Commerce Directive, sets the groundwork for online services, mandating that providers adhere to local laws, including consumer rights and data protection regulations. This framework is complemented by the recently introduced Digital Services Act and Digital Markets Act, which focus on combating illegal content and promoting fair competition among digital platforms. Such regulations are crucial for maintaining trust in the Quick Commerce sector, as they address issues related to transparency, advertising, and liability for online intermediaries. The adoption of mobile commerce (M-commerce) has surged, with many consumers preferring to shop via their smartphones. This trend is supported by Italy's high smartphone penetration and the increasing use of digital payment methods, including contactless options. Furthermore, the integration of social media platforms into e-commerce strategies has enabled retailers to reach consumers more effectively, leveraging channels like WhatsApp for direct communication and sales. To thrive in the Quick Commerce market, businesses must adopt best practices that align with consumer expectations and regulatory requirements. This includes ensuring compliance with local tax obligations, particularly regarding VAT, which necessitates that businesses register locally if their sales exceed certain thresholds.

According to the research report, ""Italy Quick Commerce Market Outlook, 2029,"" published by Bonafide Research, the Italy quick commerce market is anticipated to add to more than USD 2 Billion by 2024–29. Italian consumers increasingly prioritize convenience and speed in their shopping experiences. The pandemic has accelerated this trend, as many people have become accustomed to online shopping and the immediacy of delivery services. As lifestyles evolve, consumers are seeking more efficient ways to obtain groceries and everyday essentials without the hassle of traditional shopping. Italy's urban population is a critical driver of Quick Commerce growth. As more people reside in urban areas, the density of potential customers increases, making rapid delivery services more viable and appealing. Additionally, the growing penetration of smartphones and internet access in Italy facilitates easier ordering and payment processes. With approximately 85% of the population using the internet, the potential customer base for Quick Commerce is substantial. Companies are increasingly leveraging AI to enhance user experiences, such as through personalized recommendations and chatbots for customer support. Furthermore, the rollout of 5G technology is expected to enhance connectivity, enabling faster and more reliable service. Quick Commerce players are likely to form strategic partnerships with local retailers and suppliers, allowing them to expand their product offerings and improve delivery times. By sourcing products locally, companies can reduce delivery distances and times, which is essential for maintaining the promise of rapid service. This approach not only enhances operational efficiency but also supports local economies.

The Food & Groceries segment at the moment is ruling in Italy's Quick Commerce, by the major drive of change in consumer behavior toward convenience and speed. This segment has gathered impetus with the growing preference of consumers to have meals, snacks, and essential groceries delivered to their doorstep as quickly as possible. The pandemic accelerated this trend even further with many consumers taking to online services for daily needs, further entrenching dependency on the platforms that give rapid delivery. For the companies in this space, this has meant broadening their offerings to ensure a wide selection of food items, from ready-to-eat meals to beverages, to feed their appetites. The other key growth segment is Small Electronics & Accessories, one that avails itself of increased demand for tech products and accessories accompanying digital device usage. On the back of this adjustment to remote work schedules and digital lifestyles, demand for gadgets, chargers, and other small electronics has risen. Quick Commerce platforms are cashing on this by providing customers with quick delivery alternatives for these products and, in return, attracting the technology-savvy consumers who require instant access to the products. The stationery segment caters to the students' and professionals' demands for such supplies within the shortest notice, mostly during examination times or project deadlines. The personal care segment is on the rise as consumers look for convenience in buying hygiene and beauty products, most of whom have used Quick Commerce platforms for their essential needs.

The online payment segment, however, is leading the market of Quick Commerce and growing fast. Driving this are increasing adoptions of digital payment methods by the younger consumers and those living in urban areas. The ease and speed of making online payments, combined with the rise of mobile commerce, have led to this mode of payment becoming increasingly popular among Quick Commerce customers. Online payments also offer more modes of payment such as credit card, debit card, digital wallet, buy now pay later among others. While the online payments mode grows, with more confidence in online shopping along with making digital payments among consumers, the segment of online payments is likely to go north in the Quick Commerce market. Cash on delivery continues to remain popular in Italy owing to the preference for in-hand money transactions by the country over a very long period. Many customers, most especially the less technologically savvy or those who are quite conscious of online security, would want to pay cash upon delivery. Customers are comfortable with this mode of payment as secure and controlled on their part because one could review the items upon arrival before making a payment. In addition, COD accommodates people without access to online payment facilities or those who simply do not like sharing their financial information online. However, the growth of the COD segment is relatively lower compared to online payments, since more consumers grow comfortable with digital payment options.

Convenience and user-friendly interface have made application-based operations dominant in the Quick Commerce market of Italy. This model makes it possible for consumers to place orders in a blink by using dedicated mobile applications that are made user-friendly, thereby making it easier to navigate through products instantly. A feature that gives customers the capability to order from anywhere and at any time, combined with the features of saved user locations and easy payment integration, empowers customers to make on-the-go purchases. It is in this operational model that e-commerce has gained momentum, as it caters to fast-paced lifestyles of urban consumers where quick shopping experiences are highly prioritized. The Hybrid Operation segment is growing fast due to the flexibility it allows for in a customer's purchase journey. The hybrid operations have elements from both the application-based and website-based models to give consumers a choice, which goes on to capture a broader customer base. This even extends to people who would still favor the traditional web-surfing approach to better overview the products on offer. Increasing penetration of smartphones and increased access to the internet boost demand for hybrid models that could not only play out consumer preferences differently but also accommodate different shopping habits. Website-Based Operations is still relevant, they neither lead nor grow at a very rapid rate compared to the other two segments. They provide a complete shopping experience with information regarding the product and pictures, but immediacy is generally what consumers expect in Quick Commerce. They, however, form a vital part of the market, more so for consumers who want a greater detailed browser experience before making purchases.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Quick Commerce market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Food & Groceries
• Stationary
• Personal Care Items
• Small Electronics & Accessories
• Others (Pets, alcohol, gifts & flowers, Medicines)

By Payment Mode
• Cash on Delivery
• Online

By Technology
• Application Based Operation
• Hybrid Operation
• Website Based Operation

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Quick Commerce industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.