The demand for online grocery delivery services in Nigeria has seen significant growth over the past few years.
Customer preferences: Nigerian consumers are increasingly turning to online grocery delivery services due to the convenience and time-saving benefits they offer. With the rise of e-commerce platforms and the increasing adoption of smartphones, consumers are now able to order groceries from the comfort of their homes and have them delivered to their doorstep. Additionally, the COVID-19 pandemic has accelerated the growth of the online grocery delivery market as consumers have become more cautious about visiting physical stores.
Trends in the market: The online grocery delivery market in Nigeria is highly competitive with a number of players offering similar services. However, there has been a recent trend towards the emergence of niche players that focus on specific product categories such as fresh produce or organic products. These niche players are able to differentiate themselves from the competition by offering unique products and services that cater to specific customer needs.
Local special circumstances: One of the unique challenges facing the online grocery delivery market in Nigeria is the lack of infrastructure and logistics support. The country's poor road network and inadequate transportation systems make it difficult for delivery companies to efficiently deliver products to customers. Additionally, the high cost of fuel and electricity also adds to the operational costs of these companies.
Underlying macroeconomic factors: The Nigerian economy has been experiencing a period of slow growth over the past few years. This has led to a decline in consumer purchasing power and a shift towards more cost-effective purchasing habits. As a result, consumers are increasingly turning to online grocery delivery services as a way to save money and reduce their overall grocery bill. Additionally, the country's large and growing population presents a significant market opportunity for online grocery delivery companies.
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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