United Kingdom (UK) Quick Commerce Market Overview, 2029

United Kingdom (UK) Quick Commerce Market Overview, 2029

The UK quick commerce market, also known as rapid delivery or q-commerce, has seen a significant surge in popularity in recent years. Quick commerce refers to the ultrafast delivery of groceries and other daily essentials, often within 10-30 minutes of placing an order. This service has become increasingly attractive to time-pressed urban consumers seeking instant gratification and convenience. At the start of the COVID-19 pandemic this form of delivery provided a convenient alternative to in-store shopping, and possibly contributed to the growth of this sector of the food and consumer goods industry in the UK. Getir was founded in 2015 in Turkey and launched in the UK in early 2021, one of a slew of rapid grocery providers promising delivery within 15 minutes. Unlike aggregator apps, which partner with existing stores, the players established dedicated dark stores and courier fleets. One of the key drivers for the growth of the UK quick E-commerce market is the increasing consumer adoption of online shopping. Factors such as time-starved lifestyles, on-demand culture and desire for convenience have led more individuals to fulfill their shopping needs online. Quick commerce platforms are catering strongly to this trend by ensuring goods are delivered to customers within hours of placement of order. The quick commerce model involves setting up micro-fulfillment centers called dark stores in densely populated areas to enable faster deliveries. This approach relies on a dense network of distributed warehouses and efficient logistics to dispatch orders quickly. The market growth is driven by the busy lifestyles of consumers, the need for instant delivery, and rising smartphone penetration in the UK. Q-commerce offers consumers the possibility to quickly receive deliveries of groceries, restaurant orders, or small quantities of lightweight goods on their doorstep, often within the hour.

According to the research report ""United Kingdom Quick Commerce Market Overview, 2029,"" published by Bonafide Research, the United Kingdom quick commerce market was valued at more than USD 6 Billion in 2023. The increasing popularity of quick commerce owing to its convenient and hassle-free value proposition further fuels the growth of this market in the UK. By leveraging technologies such as mobile applications, GIS mapping and AI, quick commerce platforms are enhancing the online shopping experience of customers. This enables impulse purchase of goods and expands the market potential for connected enterprises. High smartphone and internet penetration in the country has accelerated the quick e-commerce market growth. The UK has one of the highest smartphone and internet usage rates globally. Swift delivery capabilities within same day or next day fulfilment builds trust among customers towards quick commerce platforms. The quick commerce market in the UK has been expanding rapidly, with consumers increasingly looking for convenience and speed when it comes to their shopping experience. This has led to a rise in demand for quick commerce services, which allow customers to order products online and receive them within a matter of hours. Additionally, customers are becoming more environmentally conscious, which has contributed to a growing demand for sustainable and eco-friendly products. The use of advanced technologies, such as mobile applications and AI-driven logistics, is streamlining operations and improving customer experience. Enhanced tracking capabilities and user-friendly interfaces are making it easier for consumers to access quick commerce services. Beyond groceries, quick commerce platforms are expanding their product ranges to include household items, personal care products, and even small electronics. This diversification allows them to cater to a broader audience and meet various consumer needs.

Among the segments in the United Kingdom, food and grocery tops the Q-commerce market. The Food & Grocery segment holds a prime position in the United Kingdom's Q-commerce space, given the segment's essential nature and high-frequency purchase patterns. Since food and grocery items are core needs, they are on the top list of quick access for consumers, especially when people live in the fast-paced urban lifestyle such as that of UK residents. Fresh produce, snacky items, and meal essentials are comfortably brought to doorstep direct from the producers and manufacturers. Small Electronics &Accessories A growth area is being commanded by the increasing demand for tech gadgets and accessories, like phone chargers and smart devices. Technology today often is becoming the fabric of most parts of life. Interest in these gadgets is motivated by the availability through quick delivery services. The growing dependence on electronic gadgets and the convenience of ready access prepare the base for increased growth in this segment. The Stationery segment is also not so dominating but does stay relevant due to its service of needs for students, professionals, and households requiring quick access to the procurement of office supplies, notebooks, and other writing materials. Though the need for stationery remains less broad as compared to groceries, it still benefits from quick commerce because it means timely procurement for all. Personal Care Products fall into an important category of the market, offering easy access to toiletries, skin products, and hygiene essentials. The convenience of being delivered quickly is parallel to consumers' tendencies to not want to visit a store in order to maintain health and wellness routines.

A number of compelling factors are driving online payment to the forefront as one of the leading and fastest-growing methods in quick commerce across the United Kingdom. Online payments inherently connote ease and speed, very much resonating with the core promise of quick commerce in general included delivering goods quickly and efficiently. Consumers can easily complete their transactions on different online platforms by using credit/debit cards, mobile wallets, and even online banking, thus doing away with troubles of using cash and definitely giving a faster way of completing a purchase. Online payments have emerged as a preferred mode for many, with the proliferation of smartphones and the increasing comfort level of consumers about digital transactions. After the COVID-19 pandemic, it accelerated further toward online payments, as consumers and businesses look for contactless and hygienic transaction methods to minimize physical contact. This has been the period of remarkable growth in digital payment adoption, which did not slow down even when the restrictions were eased, instead of it showed permanent changes in consumer behaviors. Integration of loyalty programs and promotional offers with online payment platforms has given clear incentive to consumers to opt for digital payments over traditional ones. Cash on Delivery (COD) remains a less dominant method of payment in the UK's quick commerce sector. While COD offers an alternative for people who prefer or need to make transactions in cash, its usage is increasingly seen to be falling because of the inefficiencies and delays that this adds to the delivery process. Cash handling is most likely to slow down transactions, add operational complexities, and sometimes even involve security risks for the delivery staff.

In the UK's quick commerce market, the Application-Based Operation segment is taking the lead in terms of its user-friendliness, ease of access, and compatibility with modern mobile technologies. Mobile applications offer a frictionless, user-friendly experience when customers can scroll through offerings, click to place orders, and track deliveries right from their mobile phones. This brings in play convenience aligned to the fast-paced lifestyle of UK consumers that place a premium on efficiency and timeliness. This feature of exclusively app-based operations such as saving preferences, taking targeted promotions, and at the same time, able to access the same through push messages further encourages customer engagement. In this way, it results in brand loyalty and makes it a leader in the market. Hybrid operation is evidently a growing segment that combines the website-based and app-based functional abilities to cater to a bigger audience segment. The flexibility of hybrid operations, allowing one to shift across devices without losing a shopping flow of relevant content, avails huge benefits in this space for the wide customer base that pursues convenience across multiple platforms. As increasingly more companies appreciate the value in providing a consistent omnichannel experience, the hybrid operation model is finally developing and witnessing rapid growth. Website-Based Operation is less dominated compared to the other segments. Websites are highly significant platforms, especially for users who have a large preference for bigger screens or for those needing access to greater detail of information before making a purchase. They are indeed the first touchpoints for most customers who gradually move toward app-based convenience. With the apparent shift to mobile-first operation among service providers, operating on a website is increasingly getting recognized as a secondary channel in the quick commerce ecosystem.

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.