Grocery Delivery - Nepal | Statista Market Forecast

In 2024, the projected revenue in the Grocery Delivery market in Nepal is expected to reach US$174.70m.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.27%, resulting in a projected market volume of US$272.10m by 2029.
Furthermore, the Retail Delivery market is projected to have a market volume of US$174.70m in 2024.
When compared globally, the majority of revenue will be generated China, amounting to US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$40.31 in 2024.
Additionally, the number of users in the Grocery Delivery market is expected to reach 6.7m users by 2029.
Finally, user penetration in the Grocery Delivery market is estimated to be at 13.9% in 2024.
Nepal's grocery delivery market is experiencing a surge in demand as consumers prioritize convenience and safety amid the COVID-19 pandemic.

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)

Nepal, a country known for its natural beauty, is also experiencing a shift in its grocery delivery market.

Customer preferences: The Nepalese market is predominantly driven by the younger generation who are tech-savvy and prefer online shopping. This has led to a surge in demand for online grocery delivery services. Customers are looking for convenience, quality, and affordability, and are willing to pay a premium for these services.

Trends in the market: The grocery delivery market in Nepal is still in its nascent stage, but it is growing rapidly. The number of players in the market is increasing, and there is intense competition among them. To stay ahead of the competition, companies are offering a wider range of products, faster delivery times, and better customer service. Some companies have also introduced loyalty programs and discounts to retain customers.

Local special circumstances: Nepal is a landlocked country with difficult terrain, which makes it challenging to transport goods. This has created an opportunity for grocery delivery companies to fill the gap in the market. The COVID-19 pandemic has also accelerated the growth of the market as people prefer to stay at home and order groceries online.

Underlying macroeconomic factors: The Nepalese economy is growing steadily, and there is a rise in disposable income among the middle-class population. This has led to an increase in consumer spending and a shift towards online shopping. Additionally, the government's push towards digitalization and the growth of e-commerce infrastructure has created an enabling environment for the grocery delivery market to thrive.

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.