The demand for online grocery delivery services has been on the rise in Malawi in recent years.
Customer preferences: Malawi's population is predominantly rural, with a significant portion of the population living in isolated areas with limited access to physical stores. This has led to an increasing demand for online grocery delivery services, especially during the COVID-19 pandemic, when movement restrictions were put in place to curb the spread of the virus. Customers prefer the convenience of having their groceries delivered to their doorstep, saving them time and money that would have been spent on transportation.
Trends in the market: The grocery delivery market in Malawi is still in its infancy, with a few players dominating the market. However, there has been an increase in the number of start-ups offering online grocery delivery services. These start-ups are leveraging technology to provide customers with a seamless shopping experience, from ordering to delivery. They are also partnering with local farmers and suppliers to offer a wider range of products at competitive prices.
Local special circumstances: Malawi is a landlocked country, which means that most of its goods are imported from neighboring countries. This has led to high transportation costs, which are passed on to consumers, making groceries more expensive. Online grocery delivery services have the potential to reduce the cost of groceries by eliminating the need for physical stores and reducing transportation costs.
Underlying macroeconomic factors: Malawi has a young and growing population that is becoming increasingly tech-savvy. This presents an opportunity for online grocery delivery services to tap into a growing market. The government has also made efforts to improve internet connectivity in the country, which has made it easier for people to access online services. Additionally, the COVID-19 pandemic has accelerated the adoption of online shopping, which is expected to continue even after the pandemic is over.
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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