The demand for grocery delivery services in Africa has been on the rise in recent years.
Customer preferences: Customers in Africa are increasingly turning to online platforms to purchase groceries. This trend can be attributed to the convenience and time-saving benefits that come with online shopping. Additionally, the COVID-19 pandemic has accelerated the adoption of online grocery shopping in Africa as customers seek to minimize their exposure to crowded physical stores.
Trends in the market: The grocery delivery market in Africa is still in its nascent stages. However, there has been a steady growth in the number of players entering the market. International players such as Jumia and Glovo are expanding their grocery delivery services in Africa, while local players such as Twiga Foods and Sokowatch are also gaining traction. In addition, supermarkets such as Shoprite and Pick n Pay are also launching their own delivery services to cater to the growing demand.
Local special circumstances: One of the challenges facing the grocery delivery market in Africa is the lack of proper addressing systems in many African countries. This makes it difficult for delivery companies to accurately locate customers and deliver goods in a timely manner. However, some companies such as OkHi are developing innovative solutions to address this challenge by creating digital addresses for customers.
Underlying macroeconomic factors: The growth of the grocery delivery market in Africa can be attributed to several underlying macroeconomic factors. Firstly, Africa has a young and rapidly growing population, which presents a large and untapped market for grocery delivery services. Secondly, the increasing penetration of smartphones and internet connectivity in Africa has made it easier for customers to access online grocery platforms. Finally, the growth of e-commerce in Africa is being supported by the increasing availability of digital payment solutions, which are making it easier for customers to pay for goods online.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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