Quick Commerce - Philippines

Philippines

Highlights

The Quick Commerce market in the Philippines is projected to reach a revenue of US$390.80m in 2024.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 7.62%, resulting in a projected market volume of US$564.10m by 2029.
The number of users in the Quick Commerce market is expected to reach 12.0m users by 2029.
User penetration is anticipated to be 7.6% in 2024 and is projected to reach 9.4% by 2029.
The average revenue per user (ARPU) is expected to amount to US$43.04.
In global comparison, China is expected to generate the highest revenue in the Quick Commerce market, with US$80.84bn in 2024.
Moreover, China is projected to have the highest user penetration rate in the Quick Commerce market, with a rate of 21.4%.
In the fast-growing Quick Commerce market in the Philippines, the demand for on-demand grocery delivery services is skyrocketing.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Quick Commerce, also known as Q-commerce, is a rapidly growing market in the Philippines. With the convenience of online shopping and fast delivery, Q-commerce has become a popular choice for many consumers in the country.

Customer preferences: Customers in the Philippines have shown a preference for fast and reliable delivery services. With the rise of e-commerce and online shopping, consumers expect their orders to arrive quickly and efficiently. In addition, many customers in the Philippines prefer to pay for their purchases using cash on delivery, which has become a common payment method for Q-commerce transactions.

Trends in the market: Q-commerce in the Philippines has seen a significant increase in demand, especially during the COVID-19 pandemic. With lockdowns and restrictions in place, many consumers have turned to online shopping and Q-commerce for their daily needs. This has led to an increase in the number of Q-commerce providers in the country, as well as the expansion of existing providers.

Local special circumstances: The Philippines is an archipelago with over 7,000 islands, which can make logistics and delivery challenging. However, Q-commerce providers have adapted to this challenge by partnering with local delivery services and implementing innovative delivery solutions such as drones and motorbikes.

Underlying macroeconomic factors: The rise of Q-commerce in the Philippines can be attributed to several underlying macroeconomic factors. The country has a growing middle class with increasing purchasing power, which has led to a rise in consumer spending. In addition, the country has a high internet penetration rate, which has made online shopping and Q-commerce more accessible to consumers. The COVID-19 pandemic has also played a role in the growth of Q-commerce, as consumers have turned to online shopping for safety reasons.In conclusion, Q-commerce is a rapidly growing market in the Philippines, driven by customer preferences for fast and reliable delivery services, the rise of e-commerce, and underlying macroeconomic factors such as a growing middle class and high internet penetration rate. Q-commerce providers have adapted to local special circumstances such as the country's geography by partnering with local delivery services and implementing innovative delivery solutions. The future of Q-commerce in the Philippines looks promising, with continued growth and expansion expected in the coming years.

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.