Grocery delivery has become an increasingly popular service in Iceland, with more and more consumers opting for the convenience of having their groceries delivered to their doorstep.
Customer preferences: Icelandic consumers have shown a growing preference for online shopping and home delivery, as it offers a more convenient and time-efficient option for grocery shopping. The harsh weather conditions in Iceland can make it difficult for consumers to physically go to the grocery store, which has contributed to the rise in demand for grocery delivery services. Additionally, the COVID-19 pandemic has further accelerated the shift towards online shopping as consumers have become more cautious about visiting physical stores.
Trends in the market: The grocery delivery market in Iceland has seen significant growth in recent years, with several local and international players entering the market. The market is highly competitive, with companies offering a range of delivery options such as same-day delivery, next-day delivery, and subscription-based services. One of the latest trends in the market is the use of mobile applications, which allows consumers to easily place orders and track their delivery in real-time. Another trend is the focus on sustainability, with some companies offering eco-friendly packaging and partnering with local farmers to provide organic and locally sourced produce.
Local special circumstances: Iceland is a small market, with a population of just over 360,000 people. The country's geography and climate also present unique challenges for grocery delivery companies, as many parts of the country are remote and difficult to access. Additionally, the high cost of living in Iceland means that consumers are often willing to pay a premium for convenience, which has led to higher delivery fees and prices for grocery delivery services.
Underlying macroeconomic factors: The Icelandic economy has been growing steadily in recent years, with low unemployment rates and a strong tourism industry. However, the country's high cost of living and relatively small population have limited the growth potential of the grocery delivery market. Additionally, the COVID-19 pandemic has had a significant impact on the Icelandic economy, with many businesses struggling to stay afloat. Despite these challenges, the grocery delivery market in Iceland is expected to continue to grow in the coming years, as consumers increasingly demand more convenient and time-efficient shopping options.
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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