North America Quick Commerce Market Research Report, 2029

Market Dynamic

Market Drivers • Convenience Demand: In North America, the growing demand for convenience has been a significant driver of the quick commerce market. With busy lifestyles and increased work-from-home scenarios, consumers prefer rapid delivery of groceries, essentials, and ready-to-eat meals. This convenience factor has been amplified by the integration of advanced technology like AI and machine learning, which enables personalized shopping experiences and optimized delivery routes. Retailers are capitalizing on this trend by offering a variety of products with delivery times as short as 15-30 minutes, meeting the growing consumer expectation for immediate access to goods without leaving their homes. • Urbanization and Dense Population Centers: The rapid urbanization and dense population centers in North America have created an ideal environment for quick commerce to thrive. Major cities like New York, Los Angeles, and Chicago have high concentrations of potential customers living in close proximity, making it easier and more cost-effective for companies to offer fast delivery services. These urban hubs have the necessary infrastructure, including well-developed transportation networks and a high penetration of smartphones, which further support the growth of quick commerce. Companies are leveraging these factors to expand their operations, focusing on densely populated areas where demand for speedy delivery is highest. Market Challenges • Logistics and Last-Mile Delivery: In North America, logistics and last-mile delivery challenges pose significant obstacles to the quick commerce market. The vast geographic expanse and varying population densities across the region make it difficult to optimize delivery routes and ensure timely deliveries in suburban and rural areas. The high cost of maintaining a fleet of delivery vehicles and managing warehouse operations adds to the complexity. The traffic congestion in urban areas can lead to delays, further complicating the logistics. Companies must invest in advanced technologies like route optimization software and autonomous delivery vehicles to overcome these challenges and maintain efficient operations. • Labor Shortages: Labor shortages are a critical challenge in the North American quick commerce market. The rise of gig economy platforms has created high demand for delivery drivers, leading to competition among companies to attract and retain workers. This has resulted in increased wages and benefits, driving up operational costs. The physically demanding nature of the job, combined with long hours and the pressure to meet tight delivery deadlines, contributes to high turnover rates. Companies are facing difficulties in scaling their operations and meeting customer expectations for rapid delivery times due to the scarcity of reliable and experienced delivery personnel. Market Trends • Integration of AI and Automation: In North America, the integration of AI and automation is a growing trend in the quick commerce market. Companies are increasingly using AI to predict consumer demand, optimize inventory management, and streamline delivery processes. Automated warehouses, robotic pickers, and drones are being deployed to enhance efficiency and reduce delivery times. This trend is driven by the need to meet the rising consumer expectation for faster deliveries while managing costs. The adoption of AI and automation is expected to continue, enabling companies to scale their operations and remain competitive in a rapidly evolving market. • Sustainable Practices: Sustainability is becoming a significant trend in the North American quick commerce market. Consumers are increasingly demanding environmentally friendly options, prompting companies to adopt sustainable practices in their operations. This includes using electric delivery vehicles, reducing packaging waste, and sourcing products from local suppliers to minimize carbon footprints. Companies are exploring circular economy models, such as reusable packaging and delivery containers. The focus on sustainability is not only a response to consumer preferences but a strategic move to comply with regulatory requirements and enhance brand reputation in a market that values environmental responsibility.

Key Development

• In January 2023 , SPAR extended its operations in Latvia by launching a new store in Rzekne. The 265 sq. m neighborhood shop has everything required for everyday living, including a bakery and a fresh meat sales section. • In March 2022, Walmart Canada announced an investment of over USD118 million in constructing a new high-tech sortable fulfillment center in Rocky View County, Alberta, just outside of Calgary. The company's investment is intended to enhance Walmart consumers' online and in-store shopping experience to be more accessible, faster, and more convenient. The retailer intends to invest in continued growth in Alberta and across Canada. • In December 2021, Instacart announced the launch of a new 30-minute delivery option for groceries called Instacart Plus, available to members in certain metro areas for a monthly or annual fee. It enhanced Instacart's competitiveness in the quick commerce space.