Grocery Delivery - Algeria | Statista Market Forecast

The projected revenue for the Grocery Delivery market in Algeria is estimated to reach US$35.35m in 2024.
It is expected to experience an annual growth rate of 8.81% (CAGR 2024-2029), resulting in a projected market volume of US$53.92m by 2029.
In Algeria, the Retail Delivery market is anticipated to have a projected market volume of US$35.35m in 2024.
When compared globally, China is expected to generate the highest revenue, reaching US$266.00bn in the same year.
The average revenue per user (ARPU) in the Grocery Delivery market in Algeria is projected to be US$5.08 in 2024.
Additionally, the number of users in this market is expected to reach 9.7m users by 2029.
The user penetration rate in the Grocery Delivery market in Algeria is estimated to be at 15.0% in 2024.
Despite the growing popularity of online grocery delivery services worldwide, Algeria lags behind due to limited e-commerce infrastructure and consumer preferences for in-person shopping.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

The demand for grocery delivery services in Algeria has been on the rise in recent years.

Customer preferences: Algerian customers are increasingly turning to grocery delivery services due to convenience and time-saving benefits. With busy work schedules and long commutes, customers prefer to have their groceries delivered to their doorstep rather than spend time shopping in physical stores. Additionally, the COVID-19 pandemic has further accelerated the adoption of online grocery shopping as customers prioritize safety and social distancing measures.

Trends in the market: The online grocery delivery market in Algeria is witnessing significant growth, with several companies entering the market to cater to the increasing demand. These companies are leveraging technology to provide customers with a seamless shopping experience and fast delivery times. Furthermore, there is a growing trend towards the use of mobile applications for grocery delivery services, making it easier for customers to place orders and track their deliveries.

Local special circumstances: Algeria's large geographical size and diverse population pose unique challenges for grocery delivery companies. The country's infrastructure is still developing, and there are limited options for last-mile delivery, especially in rural areas. Additionally, the majority of the population is concentrated in urban areas, making it challenging for companies to provide equal access to grocery delivery services across the country.

Underlying macroeconomic factors: Algeria's grocery delivery market is being driven by several macroeconomic factors, including the country's young and tech-savvy population, increasing internet penetration, and rising disposable income levels. Furthermore, the government's efforts to promote e-commerce and digitalization are also contributing to the growth of the online grocery delivery market in Algeria. However, the country's economic challenges, such as high unemployment rates, inflation, and currency devaluation, may impact consumer spending and affect the growth of the grocery delivery market in the future.

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.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.