The Malaysia Quick Commerce Market is growing owing to Internet and Smartphone penetration along with a growing E-Commerce market: Ken Research

November 2022  

Focus on high internet penetration rate, the ‘Go-ecommerce Onboarding campaign’, driven by increasing requirement of convenient and hassle-free experience Are Major Factor Contributing towards development of Quick Commerce Market in Malaysia.

Gen Z and Unplanned Purchase Driving the Market: Increased affinity of online and Gen-Z customers towards top-up and indulgence purchases driving the segment. In addition to this, the rising unplanned online ordering behavior from metro and tier I cities is also a contributing factor in the rise of the segment.

Shift in Consumer Behavior from Value-seeking to Convenience-Seeking: Willingness to pay for premium products, growing market for easy-to-cook products at-home delivery, demand for healthy and nutritional products, rising consumption of newer products through global experiences. Shift in consumer behavior from value-seeking to convenience-seeking, resulting in weekly, small-sized purchases rather than larger, monthly purchases driving the demand for on-demand logistics market.

Increased Conversion: "Malaysia, as with many Asian countries, love a bargain. We see year-round sales and discounts in malls and markets, reflected online via coupon sites such as Cuponation. We often see huge spikes in traffic (2 times -3 times) on specific sales dates and 60-70% conversion rates. These spikes are fueled further of late by buy now pay later payment options. The biggest spikes come on the 11-11, and 12-12 where we have seen 70 - 85% conversion rates with AOV driven up by more than three times on these sale days.

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Evolving purchasing habits with Digital Free Trade Zone: Consumer purchasing habits are evolving, supported by the Malaysian Government’s National E-commerce Strategic Roadmap, which seeks to promote growth in online retail and attract investment in the sector from global players. The Digital Free Trade Zone (DFTZ) was set up by the Malaysian Government in 2017 to facilitate seamless cross-border trade and enable local SMEs to export their goods using online marketplaces. There are currently over 1,900 companies participating in the zone. Food and beverage, beauty and personal care, furniture, and health and medical are among the top categories.

Analysts at Ken Research in their latest publication Malaysia Quick Commerce Market Outlook to 2026F- Driven by growing technological adoption and infrastructure development” observed that Malaysia Quick Commerce Market is in the growing phase. The adoption of New Technologies, emerging new players, high internet penetration, balancing lifestyle, Government Initiatives and with the convenience of last mile delivery, are some of the factors that will contributed to the Malaysia Quick Commerce market growth over the period of 2022P-2027F with a growth rate of CAGR 6.0%.

Key Segments Covered in the report: -

Malaysia Quick Commerce Market Segmentation on Demand Grocery

By Products Category

  • Beauty & Personal care
  • Packaged Food & Beverages
  • Staples
  • Fruits & Vegetables
  • Others

By Region

  • Metro & Tier I
  • Tier II & below

By Business Model

  • Dark Store Model
  • Marketplace Model

By Customer's Gender

  • Male
  • Female

By Delivery Time

  • 0-30 mins
  • 30-45 mins
  • 45- 1 hour
  • 1-2 hours

By Order Value

  • 0-50
  • 50-100
  • 100-200
  • 200-1000

By Customer's Age

  • 16-24
  • 25-34
  • 35-44
  • 45-54
  • 55+

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Malaysia Quick Commerce Market Segmentation on Demand Logistics

By B2B/B2C & C2C

  • B2B
  • B2C
  • C2C

By B2C End User

  • Grocery
  • Flowers
  • Shoes
  • Fresh Fruits & Vegetables
  • Others

By Regions

  • Urban Areas
  • Tier 2 and Rural Areas

By Average Delivery time taken

  • 0-30 mins
  • 30-45 mins
  • 45 mins - 1 hr.
  • 1 hr.- 2hr

Malaysia Quick Commerce Market Segmentation on Demand Food Delivery

By Region

  • Urban Areas
  • Tier 2, 3, Rural Areas

By Average Delivery Period

  • Under 30 Minutes
  • 30-45 Minutes
  • 45-60 Minutes

By Gender

  • Male
  • Female

By Age Group

  • 18-24
  • 25-34
  • 35-44
  • 45 above

By Frequency of ordering

  • Everyday
  • 2-3 times a week
  • once a week
  • every 2 weeks
  • once a month
  • once every 6 months
  • once a year
  • less than once a year

By Cuisine type

  • Fast Food
  • Malay
  • Beverages
  • Chinese
  • Others

Key Target Audience

  • Quick Commerce Players
  • Ecommerce Companies
  • E-grocery Companies
  • Logistics Companies
  • Cold Chain Companies
  • Investors & Venture Capitalists

Time Period Captured in the Report:

  • Historical Period: 2017/22-2021
  • Forecast Period: 2022-2027F

Companies Covered:

  • Food Panda
  • GrabFood
  • Oddle
  • Quicksent
  • Airasia
  • Pandamart
  • GrabMart
  • Happyfresh
  • Lala Move
  • Borzo
  • GrabExpress
  • Pickupp

Key Topics Covered in the Report

Country Overview Malaysia

Ecosystem of Major players in the Malaysian Quick Commerce Market, 2022

Business Cycle and Genesis of Malaysia Quick Commerce Market

The Rise of Rapid Delivery (Quick Commerce)

Customer Journey: Traditional E-Commerce VS On-Demand Logistics

E-commerce statistics in Malaysia as compared to other regions

E-commerce penetration in Malaysia

E-commerce trends in Malaysian states

E-commerce vs Quick Commerce

Business Model Canvas of Quick Commerce businesses

On Demand Food Delivery Market in Malaysia

Market Segmentation for On Demand Food Delivery Market in Malaysia

Competition Analysis for On Demand Food Delivery Market in Malaysia

Future Forecast for On Demand Food Delivery Market in Malaysia

On Demand Grocery Delivery Market in Malaysia

Market Segmentation for On Demand Grocery Delivery Market in Malaysia

Competition Analysis for On Demand Grocery Delivery Market in Malaysia

Future Forecast for On Demand Grocery Delivery Market in Malaysia

On Demand Last Mile Logistics Market in Malaysia

Market Segmentation for On Demand Last Mile Logistics Market in Malaysia

Competition Analysis for On Demand Last Mile Logistics Market in Malaysia

Future Forecast for On Demand Last Mile Logistics Market in Malaysia

Industry Analysis

Regulations: Product Registration and Certification

Challenges in Market

Growth Drivers of the Malaysian Quick Commerce Market

Growth driven by Covid-19 pandemic

Malaysian Government’s National E-commerce Strategic Roadmap

Sub-segments of the Malaysian Government’s Digital Free Zone

Diversification Opportunity to Other Categories

Technologies to Leverage in the Malaysian Quick Commerce Market

Strategies followed by Food Delivery Player in SEA’s

New Technologies

For more insights on the market intelligence, refer to the link below: -

Malaysia Quick Commerce Market Analysis

Related Reports by Ken Research: -

India Quick Commerce Market Outlook to FY’27F

KSA Online B2B Grocery Market Outlook to 2026F

Vietnam Online Grocery Market Outlook to 2026