Retail Delivery - Hong Kong

Hong Kong

Highlights

The Reail Delivery market in Hong Kong is expected to generate a revenue of HKD US$2.99bn in 2024.
This revenue is projected to grow at an annual growth rate of 8.90% (CAGR 2024-2029), resulting in a market volume of HKD US$4.58bn by 2029.
By 2029, it is estimated that the number of users in the Reail Delivery market will reach 2.4m users.
The user penetration rate is projected to be 22.4% in 2024 and is expected to increase to 31.5% by 2029.
The average revenue per user (ARPU) is expected to be HKD US$1.78k.
In comparison to other countries, United States is projected to generate the highest revenue in the Reail Delivery market, amounting to CNY US$195.40bn in 2024.
The United States, on the other hand, is expected to have the highest user penetration rate in the Reail Delivery market, with a projected rate of 30.4%.
Hong Kong's retail delivery market is experiencing a surge in demand for contactless delivery options due to the increasing concerns about hygiene and safety.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The demand for retail delivery services in Hong Kong has been on the rise in recent years.

Customer preferences: This trend can be attributed to the busy lifestyle of Hong Kong residents who prefer the convenience of having their purchases delivered to their doorstep. Additionally, the COVID-19 pandemic has further accelerated the adoption of e-commerce and delivery services as consumers avoid going to physical stores.

Trends in the market: One of the major trends in the retail delivery market in Hong Kong is the emergence of on-demand delivery services. This allows customers to receive their orders within a shorter timeframe, often within hours of placing the order. Another trend is the increasing popularity of delivery services for fresh produce and groceries, as consumers become more comfortable with purchasing perishable items online.

Local special circumstances: Hong Kong's unique geography and dense population also play a role in the development of the retail delivery market. The city's high population density and narrow streets make it difficult for delivery trucks to navigate, leading to the rise of smaller delivery vehicles such as motorcycles and bicycles. Additionally, the city's extensive public transportation network makes it easier for delivery companies to transport goods across the city.

Underlying macroeconomic factors: Hong Kong's strong economy and high levels of disposable income also contribute to the growth of the retail delivery market. The city's status as a major financial hub attracts a large number of expatriates and high-income earners who are willing to pay a premium for delivery services. Furthermore, the city's aging population and shrinking workforce have led to an increased demand for delivery services, particularly for elderly residents who are unable to leave their homes.

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.