Grocery Delivery - Ethiopia | Statista Market Forecast

In 2024, it is projected that the revenue in the Grocery Delivery market in Ethiopia will reach US$138.80m.
Furthermore, the revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 12.40%, resulting in a projected market volume of US$249.00m by 2029.
In the same year, the Retail Delivery market in Ethiopia is anticipated to have a projected market volume of US$138.80m.
When compared globally, China is predicted to generate the highest revenue, amounting to US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market in Ethiopia is projected to be US$11.60 in 2024.
Additionally, the number of users in the Grocery Delivery market is expected to reach 20.2m users by 2029.
Moreover, the user penetration rate in the Grocery Delivery market is estimated to be 9.2% in 2024.
Ethiopia's grocery delivery market is experiencing rapid growth, driven by increasing urbanization and the rising demand for convenience.

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 Ethiopian market has experienced a surge in the demand for grocery delivery services in recent years.

Customer preferences: Customers in Ethiopia are increasingly turning to online grocery shopping to save time and avoid the hassle of going to physical stores. The convenience of having groceries delivered to their doorstep is a major factor driving the growth of the grocery delivery market in Ethiopia. Additionally, the COVID-19 pandemic has accelerated the adoption of online grocery shopping as customers seek to minimize their exposure to the virus.

Trends in the market: The grocery delivery market in Ethiopia is characterized by the presence of both local and international players. Local players dominate the market due to their understanding of the local market and ability to offer competitive prices. However, international players are increasingly entering the market, attracted by the growing demand for grocery delivery services. These players are leveraging their expertise and resources to offer a wider range of products and faster delivery times.Another trend in the market is the use of mobile apps to facilitate online grocery shopping. Many grocery delivery companies in Ethiopia have developed mobile apps that allow customers to place orders and track their deliveries in real-time. This has made it easier for customers to shop for groceries online and has contributed to the growth of the market.

Local special circumstances: The Ethiopian market is unique in many ways, and the grocery delivery market is no exception. One of the challenges faced by grocery delivery companies in Ethiopia is the lack of a well-developed logistics infrastructure. This makes it difficult to deliver groceries to customers in a timely and efficient manner. Additionally, many customers in Ethiopia prefer to pay for their groceries in cash, which can be a challenge for online grocery delivery companies that rely on electronic payments.

Underlying macroeconomic factors: The Ethiopian economy has been growing at a steady rate in recent years, with a focus on developing the country's infrastructure and expanding its manufacturing sector. This has led to an increase in disposable income and a growing middle class, which has contributed to the growth of the grocery delivery market. Additionally, the government has taken steps to promote e-commerce and improve internet connectivity, which has made it easier for customers to shop for groceries 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.

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