Market Insights eCommerce Online Food Delivery

Grocery Delivery - Iran

Iran

In 2024, the projected revenue in the Grocery Delivery market in Iran is expected to reach US$682.00m.
This indicates a significant potential for growth in this market within the country.
Furthermore, it is projected that the revenue will experience an annual growth rate of 17.95% from 2024 to 2029, resulting in a projected market volume of US$1,557.00m by 2029.
In addition to the Grocery Delivery market, the Retail Delivery market in Iran is also expected to perform well.
It is projected to have a market volume of US$682.00m in 2024.
When compared globally, it is worth noting that China is projected to generate the highest revenue in this market, with an estimated revenue of US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market in Iran is projected to be around US$70.05 in 2024.
This indicates the potential profitability of each user within this market.
Additionally, it is expected that the number of users in the Grocery Delivery market will reach 12.4m users by 2029, highlighting the increasing demand for this service among consumers in Iran.
Furthermore, the user penetration in the Grocery Delivery market is projected to be at 10.8% in 2024.
This metric reflects the percentage of the population that actively uses Grocery Delivery market services, indicating the level of market saturation within the country.
Iran's grocery delivery market is experiencing a surge in demand due to the convenience and safety it provides amidst the country's high population density and traffic congestion.

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Analyst Opinion

The Grocery Delivery market in Iran has seen significant growth in recent years.

Customer preferences: One of the main reasons for the growth in the Grocery Delivery market in Iran is due to changing customer preferences. With the rise of technology and convenience, consumers are increasingly turning to online platforms to purchase their groceries. This is particularly true for busy urbanites who may not have the time to visit physical stores. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping as consumers look for contactless ways to purchase their essential items.

Trends in the market: One trend that is emerging in the Grocery Delivery market in Iran is the rise of local players. While international players like Amazon and Alibaba have a presence in the country, local players like Snapp and Digikala are gaining market share. This is due to their understanding of local customer preferences and their ability to offer a wider range of local products. Additionally, these local players have been able to navigate the complex regulatory environment in Iran, which can be a challenge for international players.Another trend in the Grocery Delivery market in Iran is the increasing use of mobile apps for grocery shopping. This is particularly true for younger consumers who are more tech-savvy and comfortable with using mobile apps for a variety of tasks. As such, many grocery delivery companies are investing in their mobile app offerings to provide a seamless and convenient shopping experience for their customers.

Local special circumstances: Iran has a large and growing middle class, which is driving the growth of the Grocery Delivery market. As more consumers enter the middle class, they are looking for convenient and affordable ways to purchase their groceries. Additionally, Iran has a relatively young population, with a median age of 31. This younger demographic is more likely to embrace technology and online shopping, which is further driving the growth of the Grocery Delivery market.

Underlying macroeconomic factors: The Iranian economy has faced significant challenges in recent years, with sanctions and political instability impacting economic growth. However, the Grocery Delivery market has been able to thrive despite these challenges. This is due to the fact that grocery delivery is seen as an essential service and is less impacted by economic downturns compared to other industries. Additionally, the rise of local players in the market has helped to create jobs and boost the local economy.

Methodology

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.