UK Quick E-Commerce (quick commerce) Market Size and Trends

The UK quick e-commerce (quick commerce) market size was estimated at US$ 6.21 Billion in 2023 and is expected to reach US$ 21.48 Billion by 2030, grow at a compound annual growth rate (CAGR) of 19.4% from 2023 to 2030.

Quick commerce refers to the ultrafast delivery of groceries and other daily essentials in as fast as 10-30 minutes. It involves setting up micro-fulfillment centers called dark stores in urban areas to enable faster deliveries. The key advantage of quick commerce is convenience and meeting instant gratification needs of time-pressed urban consumers. The market growth will be driven by the busy lifestyles of consumers, the need for instant delivery, and rising smartphone penetration in the UK.

The UK quick e-commerce (quick commerce) market is segmented by product category, order size, delivery time, payment method, and business model. By product category, the market is segmented into fresh food & groceries, prepared meals, snacks & desserts, beverages, personal care & household, and others. The fresh food & groceries segment is expected to dominate the market due to the high demand for quick deliveries of fresh fruits, vegetables, dairy items, and other daily essentials.

Same-day and ultra-fast deliveries within one hour are becoming increasingly popular among time-starved consumers. London dominates the sector currently due to its high population density and widespread adoption of online shopping. However, other major cities like Manchester, Birmingham, and Glasgow also show promising potential.

While online grocery shopping has seen rapid uptake during the pandemic, delivery timeframes of one to three days can be too long for some. Quick commerce addresses this gap by fulfilling orders within 60-90 minutes. The approach relies on a dense network of micro-fulfillment centers and distributed warehouses to enable super-fast dispatch. Investment from global VC funds is helping startups expand operations and offer wider product assortments beyond groceries.

UK quick e-commerce (quick commerce) Market Trends:

Data analytics and AI: The use of data analytics and AI is an important trend in quick commerce. Companies leverage data to optimize routing, inventory, and demand forecasting. Predictive analytics and machine learning improve estimated time of delivery (ETAs) and inventory management within dark stores. AI chatbots also simplify customer interactions.
Focus on dark store locations: Optimal dark store locations are critical for successful quick deliveries. Quick commerce apps are using data and analytics to identify high-density residential areas and set up micro-fulfillment centers. Proximity to customers ensures speed and convenience.
Sustainable packaging: Consumers are increasingly conscious of sustainability. Quick commerce apps are adopting recycled, reusable, and eco-friendly packaging for deliveries rather than single-use plastics. Sustainable packaging minimizes waste and appeals to environmentally-minded consumers. For instance, In September 2023, a study by DS Smith revealed that 26% of online shoppers in the UK would discontinue ordering from a company if the products were delivered with excessive and unnecessary packaging. The research emphasized the significance of sustainable and recyclable packaging, highlighting it as a key concern for British online shoppers.
Integration with e-commerce platforms: Quick commerce apps are exploring integrations with existing e-commerce platforms like online grocery apps. This can enable consumers to get faster deliveries for a wider range of products beyond just what is available in micro-fulfillment centers.