Grocery Delivery - Hong Kong | Statista Market Forecast

The Grocery Delivery market in Hong Kong is anticipated to achieve a revenue of HK US$3.10bn by 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.80%, resulting in a projected market volume of HK US$4.72bn by 2029.
The Retail Delivery market, on the other hand, is estimated to reach a market volume of HK US$2.99bn in 2024.
In comparison to other countries, China is projected to generate the highest revenue, amounting to HK US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market in Hong Kong is anticipated to be HK US$1.61k in 2024.
Moreover, the number of users in the Grocery Delivery market is expected to reach 2.7m users by 2029.
The user penetration rate in the Grocery Delivery market is projected to be 25.7% in 2024.
Hong Kong's grocery delivery market is thriving with a wide range of online platforms offering convenient and efficient services to meet the busy lifestyle of its tech-savvy citizens.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

Hong Kong, a bustling city known for its vibrant culture and delicious cuisine, has seen a surge in demand for grocery delivery services in recent years.

Customer preferences: With the fast-paced lifestyle of Hong Kong, many consumers are finding it increasingly difficult to find the time to shop for groceries. The convenience and time-saving benefits of grocery delivery services have driven the demand for such services. Moreover, the COVID-19 pandemic has further accelerated the adoption of online grocery shopping, as consumers prioritize safety and social distancing.

Trends in the market: The grocery delivery market in Hong Kong has seen a significant increase in competition, with both local and international players entering the market. The market trend has been towards the development of more efficient and personalized services. Many grocery delivery companies are now offering same-day delivery, with some offering delivery within a few hours of ordering. Additionally, many companies have introduced subscription-based models, offering discounts and other incentives to customers who sign up for regular deliveries.

Local special circumstances: Hong Kong has a unique grocery market with a high concentration of small and medium-sized grocery stores. These stores are often located in densely populated areas, making it challenging for larger grocery chains to enter the market. As a result, many grocery delivery services in Hong Kong have partnered with local stores to offer their customers a wider range of products and more convenient delivery options.

Underlying macroeconomic factors: Hong Kong's strong economy and high population density have made it an attractive market for grocery delivery services. Additionally, the city's high cost of living and long working hours have contributed to the demand for convenient and time-saving services. However, the city's small geographic size and limited road infrastructure pose challenges for delivery companies, making it essential for companies to develop efficient and streamlined delivery systems.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.