Kenya, a country located in East Africa, has seen a significant surge in the Grocery Delivery market in recent years.
Customer preferences: The customers in Kenya are rapidly adopting online grocery shopping and delivery services due to the convenience they offer. Customers can easily order groceries from the comfort of their homes and have them delivered to their doorstep, saving them time and money. Additionally, the COVID-19 pandemic has accelerated the growth of the online grocery market, as customers prefer to avoid crowded supermarkets and reduce their exposure to the virus.
Trends in the market: The Grocery Delivery market in Kenya is witnessing an increase in the number of players entering the market, leading to intense competition. The competition is driving innovation, with companies introducing new features such as same-day delivery, cashless payment options, and loyalty programs to attract and retain customers. Moreover, the market is witnessing a shift towards the use of mobile applications, with customers preferring to order groceries through their smartphones.
Local special circumstances: Kenya has a relatively young population, with over 60% of the population aged below 25 years. This young demographic is tech-savvy and comfortable using digital platforms, making them more likely to adopt online grocery shopping and delivery services. Additionally, the country has a growing middle class, which is increasingly time-conscious and values convenience, making them a significant target market for online grocery retailers.
Underlying macroeconomic factors: Kenya's economy has been growing steadily over the past few years, with a GDP growth rate of 5.7% in 2019. The growth has resulted in increased disposable income for consumers, which has led to increased spending on groceries. Additionally, the country has seen significant investments in its digital infrastructure, such as the expansion of mobile networks and the adoption of mobile money services, making it easier and more affordable for customers to order 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.
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