An intense price war, new entrants, and new investments are fueling China’s booming instant commerce sector. Sales are expected to outpace total retail ecommerce, making lower-tier cities the next battleground.
Instant commerce is the ultrafast retail model where goods, ranging from food and groceries to consumer packaged goods (CPG) and other nonfood items, are delivered in a few minutes to a couple of hours. Here are five charts that reveal what to expect from the booming sector.
Instant commerce sales growth outpaces total retail ecommerce
Instant commerce retail sales will increase 28.6% YoY in 2025, reaching RMB 1.003 trillion ($139.99 billion), according to the Chinese Academy of International Trade and Economic Cooperation. While continuing to decelerate, growth in instant commerce sales will be more than triple that of total retail ecommerce (8.9%), per our forecast.
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