Market Insights eCommerce Online Food Delivery Grocery Delivery

Quick Commerce - Hong Kong

Hong Kong

The Quick Commerce market in Hong Kong is projected to reach a revenue of HK US$111.70m in 2024.
This market is expected to experience an annual growth rate (CAGR 2024-2029) of 6.05%, resulting in a projected market volume of HK US$149.80m by 2029.
By that time, the number of users in the Quick Commerce market is expected to reach 1.1m users.
The user penetration rate is estimated to be 11.1% in 2024 and is projected to increase to 14.8% by 2029.
The average revenue per user (ARPU) is expected to be HK US$133.80.
In comparison to other countries, China is projected to generate the highest revenue in the Quick Commerce market, reaching a value of CN¥US$80,840.00m in 2024.
Furthermore, China is expected to have the highest user penetration rate in the Quick Commerce market, with a projected rate of 21.4%.
Hong Kong's quick commerce market is thriving, with a wide range of on-demand delivery services catering to the city's fast-paced lifestyle.

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Analyst Opinion

Hong Kong, a bustling city known for its fast-paced lifestyle, has seen a significant rise in the Quick Commerce market in recent years.

Customer preferences: With the rise of e-commerce and mobile technology, customers in Hong Kong have become increasingly accustomed to convenience and instant gratification. Quick Commerce, also known as Q-commerce, caters to these preferences by offering ultra-fast delivery times, often within an hour or less. This convenience factor has made Q-commerce a popular choice for time-strapped customers who value their time and are willing to pay a premium for speedy delivery.

Trends in the market: One of the key trends in the Q-commerce market in Hong Kong is the increasing competition among players. With more and more companies entering the market, there is a growing need for differentiation and innovation. This has led to the introduction of new services such as on-demand grocery delivery and subscription-based models. Additionally, there has been a rise in the use of technology such as artificial intelligence and machine learning to optimize delivery routes and improve efficiency.Another trend in the market is the growing focus on sustainability. As consumers become more environmentally conscious, there is a growing demand for eco-friendly packaging and delivery methods. Many Q-commerce companies in Hong Kong are responding to this trend by using biodegradable packaging and electric vehicles for delivery.

Local special circumstances: One of the unique aspects of the Q-commerce market in Hong Kong is the high population density and compact geography of the city. This presents both opportunities and challenges for Q-commerce companies. On the one hand, the dense population means that there is a large customer base within a relatively small area, making it easier to reach a large number of customers quickly. On the other hand, the compact geography means that delivery times need to be extremely fast to differentiate from traditional e-commerce and brick-and-mortar stores.

Underlying macroeconomic factors: The rise of Q-commerce in Hong Kong can be attributed to several underlying macroeconomic factors. One of the key factors is the high level of smartphone penetration in the city, which has made it easier for customers to order goods and services online. Additionally, the city's high population density and busy lifestyle have created a demand for fast and convenient delivery services. Finally, the city's strong economy and high disposable income levels have made it possible for customers to pay a premium for Q-commerce services.

Methodology

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.