Quick Commerce - Israel

Israel

Highlights

The Quick Commerce market in Israel is expected to achieve a revenue of US$51.46m by 2024.
It is projected to display a compound annual growth rate (CAGR 2024-2029) of 9.11%, resulting in a market volume of US$79.60m by 2029.
The number of users in the Quick Commerce market is anticipated to reach 949.2k users by 2029.
The user penetration, which is the percentage of the population using Quick Commerce market services, is expected to be 6.8% in 2024 and is projected to increase to 9.5% by 2029.
The average revenue per user (ARPU) is estimated to be US$81.22.
In a global context, China is anticipated to generate the highest revenue in the Quick Commerce market, reaching US$80.84bn in 2024.
Moreover, China is expected to have the highest user penetration rate in the Quick Commerce market with a projected rate of 21.4%.
In Israel, the Quick Commerce market is booming with the rise of convenient, on-demand delivery services catering to the fast-paced lifestyle of its tech-savvy population.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Quick Commerce, also known as Q-Commerce, is an emerging market that has taken the retail world by storm. The Q-Commerce market in Israel has been developing at a rapid pace in recent years, reflecting the global trend of consumers demanding faster, more convenient delivery options.

Customer preferences: The Israeli consumer has become increasingly accustomed to the convenience of online shopping, and the Q-Commerce market has been quick to capitalize on this trend. Israeli consumers are demanding faster delivery times, with same-day or next-day delivery becoming the norm. Additionally, consumers are looking for more personalized experiences, with tailored recommendations and easy-to-use interfaces.

Trends in the market: The Q-Commerce market in Israel has seen a surge in new entrants, with both established retailers and startups jumping into the fray. This has led to increased competition, with companies looking for ways to differentiate themselves from their competitors. One trend that has emerged is the use of technology to optimize the delivery process, with companies using algorithms to predict demand and optimize delivery routes. Another trend is the use of micro-fulfillment centers, which are small warehouses located in urban areas that allow for faster and more efficient delivery.

Local special circumstances: Israel's small size and dense population make it an ideal market for Q-Commerce. With a population of just over 9 million people, Israel's major cities are in close proximity to one another, making it easier for retailers to offer fast and efficient delivery. Additionally, Israel's tech-savvy population has been quick to adopt new technologies, making it an ideal market for companies looking to innovate in the Q-Commerce space.

Underlying macroeconomic factors: Israel's strong economy and high standard of living have contributed to the growth of the Q-Commerce market. With a GDP per capita of over $40,000, Israeli consumers have the disposable income to spend on convenience and luxury items. Additionally, Israel's tech sector has been booming in recent years, with many startups and established tech companies looking to disrupt traditional industries like retail. This has led to increased investment in the Q-Commerce market, with companies looking to capitalize on the latest technological innovations.

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.