The demand for online grocery delivery services has been on the rise in recent years in Eastern Africa, with a growing number of consumers opting for the convenience of having their groceries delivered to their doorstep.
Customer preferences: In Eastern Africa, consumers are increasingly turning to online grocery delivery services due to the convenience they offer. With busy lifestyles, long working hours, and traffic congestion in major cities, many consumers find it difficult to visit physical stores regularly. Additionally, the COVID-19 pandemic has accelerated the adoption of online grocery shopping as consumers seek to minimize their exposure to crowded places.
Trends in the market: Kenya, Nigeria, and South Africa are the leading markets for online grocery delivery services in Eastern Africa. These countries have seen a proliferation of online grocery delivery platforms, with local and international players vying for a share of the market. The market is highly competitive, with players offering a range of services, including same-day delivery, subscription-based models, and partnerships with physical retailers.
Local special circumstances: In Kenya, the online grocery delivery market is dominated by Jumia, which has partnered with major supermarket chains to offer a wide range of products. In Nigeria, Konga and Jumia are the leading players, while in South Africa, major retailers such as Pick n Pay and Woolworths have launched their own online delivery services. However, the market is still in its early stages, and there is room for new players to enter and disrupt the market.
Underlying macroeconomic factors: The growth of online grocery delivery services in Eastern Africa is being driven by a number of macroeconomic factors. Firstly, the region has a young and tech-savvy population that is increasingly comfortable with online shopping. Secondly, there is a growing middle class with higher disposable incomes, which is driving demand for premium products and services. Finally, the region has a high mobile penetration rate, with many consumers accessing the internet via their smartphones. This has made it easier for online grocery delivery platforms to reach a wider audience and offer more convenient services.
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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