Europe Quick Commerce Market Outlook, 2029

Market Dynamic

Market Drivers • High Consumer Expectations: In Europe, high consumer expectations are a major driver of the quick commerce market. European consumers are accustomed to high-quality services and have come to expect rapid and reliable delivery of goods. This expectation is particularly strong in urban areas, where consumers demand fast access to a wide range of products, from groceries to pharmaceuticals. Companies operating in Europe are investing heavily in technology and logistics to meet these expectations, offering delivery times as short as 10-15 minutes in some cities. The emphasis on customer satisfaction and convenience is driving the growth of the quick commerce sector across the continent. • Regulatory Support and Digital Infrastructure: Regulatory support and well-developed digital infrastructure are key drivers of the quick commerce market in Europe. Governments across the region have implemented policies that promote digital innovation, e-commerce growth, and sustainable practices. The widespread availability of high-speed internet and advanced payment systems facilitates seamless online shopping and quick delivery services. European cities are well-connected, with efficient transportation networks that support rapid last-mile delivery. Companies are leveraging these favorable conditions to expand their operations, offering a wide range of products with fast delivery times, thereby driving the growth of the quick commerce market. Market Challenges • Regulatory Compliance and Sustainability: Regulatory compliance and sustainability are significant challenges for the quick commerce market in Europe. The region has stringent regulations related to data privacy, labor rights, and environmental impact, which companies must adhere to. These regulations can increase operational costs and complexity, particularly for smaller players. The growing emphasis on sustainability requires companies to adopt eco-friendly practices, such as using electric vehicles for delivery and reducing packaging waste. Failure to comply with these regulations can result in penalties and damage to brand reputation. Companies must navigate the regulatory landscape carefully while addressing consumer demands for sustainable practices. • Competition and Market Saturation: The quick commerce market in Europe is facing intense competition and market saturation, particularly in major cities like London, Paris, and Berlin. Numerous players, both local and international, are vying for market share, leading to aggressive pricing strategies and extensive promotional campaigns. This intense competition can erode profit margins and make it difficult for companies to differentiate themselves. As the market becomes saturated, companies must constantly innovate to retain customers and attract new ones. This challenge is compounded by the high cost of logistics and last-mile delivery in densely populated urban areas, where competition is most fierce. Market Trends • Focus on Sustainability and Green Logistics: In Europe, there is a growing trend towards sustainability and green logistics in the quick commerce market. Companies are increasingly adopting eco-friendly practices to meet the region's stringent environmental regulations and respond to consumer demand for sustainable products and services. This includes the use of electric vehicles, bike couriers, and carbon-neutral delivery options. Companies are focusing on reducing packaging waste and sourcing products locally to minimize their carbon footprint. This trend is not only driven by regulatory requirements but by the desire to build a positive brand image and gain a competitive edge in a market that values sustainability. • Hyperlocalization and Community Engagement: Hyperlocalization and community engagement are emerging trends in the European quick commerce market. Companies are increasingly tailoring their offerings to the specific needs and preferences of local communities. This includes partnering with local businesses, offering locally sourced products, and providing services in multiple languages. Hyperlocalization allows companies to build stronger relationships with customers and gain a deeper understanding of local market dynamics. The community engagement initiatives, such as supporting local events and charities, help companies build brand loyalty and differentiate themselves from competitors. This trend is expected to continue as companies seek to create more personalized and meaningful connections with consumers.

Key Development

• In January 2022, Flink launched its services in Italy, its first market outside Germany, to tap into the US$ 264.57 billion Italian grocery market with its 10-minute delivery proposition. • In November 2021, Gorillas rolled out its on-demand grocery delivery services in New York City as part of its U.S. expansion strategy. It aims to differentiate itself on ultra-fast delivery in the competitive New York market.