Grocery Delivery - Latvia | Statista Market Forecast

The grocery delivery market in Latvia is projected to reach a revenue of US$96.04m by 2024.
With an expected annual growth rate (CAGR 2024-2029) of 9.27%, the market volume is projected to reach US$149.60m by 2029.
In comparison, the retail delivery market is expected to have a market volume of US$85.05m in 2024.
However, the highest revenue in the global market will be generated China, amounting to US$266.00bn in 2024.
The average revenue per user (ARPU) in the grocery delivery market in Latvia is projected to be US$235.90 in 2024.
Furthermore, the number of users in the grocery delivery market is expected to reach 545.2k users by 2029.
The user penetration in the grocery delivery market in Latvia is estimated to be 22.5% in 2024.
The grocery delivery market in Latvia is experiencing a surge in demand due to the convenience it offers to busy urban residents.

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)

Amidst the global pandemic, the grocery delivery market in Latvia has been experiencing significant growth.

Customer preferences: Latvia's grocery delivery market has seen a surge in demand due to the pandemic-induced lockdowns and restrictions. Consumers are opting for online grocery shopping and home delivery services to avoid crowded supermarkets and minimize the risk of exposure to the virus. This shift in consumer behavior has led to an increase in demand for grocery delivery services in Latvia.

Trends in the market: The grocery delivery market in Latvia has been growing steadily over the past few years, but the pandemic has accelerated this growth. Online grocery shopping and home delivery services have become more popular, and companies are investing in improving their delivery infrastructure to meet the growing demand. Many grocery stores have also started offering their own delivery services, while third-party delivery services are also gaining traction.

Local special circumstances: Latvia has a relatively small population, which has made it easier for grocery delivery companies to establish a strong presence in the market. Additionally, the country has a high internet penetration rate, which has facilitated the growth of online shopping and home delivery services. The government has also been supportive of the grocery delivery market, with initiatives to promote e-commerce and digitalization.

Underlying macroeconomic factors: The pandemic has had a significant impact on the Latvian economy, with many businesses struggling to stay afloat. However, the grocery delivery market has been one of the few sectors that has seen growth during this time. The Latvian government's efforts to promote e-commerce and digitalization have also helped to create a favorable environment for the grocery delivery market. Overall, the grocery delivery market in Latvia is expected to continue growing in the coming years, as more consumers opt for the convenience and safety of online shopping and home delivery 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.

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