Grocery Delivery - Central America

In Central America, the Grocery Delivery market is projected to reach a revenue of US$917.90m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 11.47%, resulting in a projected market volume of US$1.58bn by 2029.
The Retail Delivery market in Central America is projected to have a market volume of US$903.00m in 2024.
In global comparison, China is expected to generate the highest revenue in the Grocery Delivery market, reaching US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market in Central America is projected to be US$139.70 in 2024.
By 2029, the number of users in the Grocery Delivery market in Central America is expected to be 9.6m users.
The user penetration in the Grocery Delivery market in Central America will be at 12.4% in 2024.
In Central America, the grocery delivery market is rapidly expanding as consumers seek convenience and safety amid the COVID-19 pandemic.

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 Grocery Delivery market in Central America has been growing steadily in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Central America have been increasingly turning to online grocery delivery services due to the convenience and time-saving benefits they offer. With busy lifestyles and a growing middle class, customers are looking for ways to save time and simplify their shopping experience. Additionally, the COVID-19 pandemic has accelerated the shift towards online grocery shopping, as customers seek to avoid crowded stores and minimize the risk of exposure to the virus.

Trends in the market: One of the key trends in the Central American grocery delivery market is the emergence of local players that are tailoring their services to meet the unique needs of customers in the region. These companies are leveraging their knowledge of the local market to offer a more personalized and efficient service, which is resonating with customers. Another trend is the adoption of technology to improve the customer experience, with many companies investing in mobile apps and online platforms that make it easier for customers to place orders and track deliveries.

Local special circumstances: Central America is a diverse region with unique cultural and economic factors that are shaping the grocery delivery market. For example, in some countries, the lack of reliable transportation infrastructure can make it difficult for customers to access grocery stores, making delivery services a more attractive option. Additionally, the prevalence of cash-based transactions in some countries has led to the emergence of hybrid models that allow customers to pay for their orders in cash upon delivery.

Underlying macroeconomic factors: The growth of the grocery delivery market in Central America is also being driven by underlying macroeconomic factors such as rising disposable incomes and urbanization. As more people move to cities and join the middle class, they are looking for ways to save time and simplify their lives, which is driving demand for online grocery delivery services. Additionally, the rise of e-commerce and the increasing penetration of smartphones and internet connectivity are creating new opportunities for companies to reach customers and expand their market share.

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.