Retail Delivery - Ethiopia

Ethiopia

Highlights

The Reail Delivery market in Ethiopia is projected to reach a revenue of US$138.80m in 2024.
Looking ahead, the market is expected to experience a steady annual growth rate (CAGR 2024-2029) of 12.40%, resulting in a projected market volume of US$249.00m by 2029.
In terms of user base, the number of users in the Reail Delivery market is expected to reach 20.2m users by 2029.
This reflects a user penetration rate of 9.2% in 2024, which is anticipated to increase to 13.9% by 2029.
When it comes to average revenue per user (ARPU), it is estimated to amount to US$11.60.
In a global context, United States is projected to generate the highest revenue in the Reail Delivery market, reaching US$195.40bn in 2024.
On the other hand, United States is expected to have the highest user penetration rate with a projected rate of 30.4%.
Ethiopia's retail delivery market is experiencing a surge in demand due to the growing middle class and increasing urbanization.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Despite being one of the poorest countries in the world, Ethiopia has been experiencing a rapid growth in its retail delivery market.

Customer preferences: One of the main reasons for the growth in the retail delivery market in Ethiopia is the changing customer preferences. With the increasing urbanization and a rise in the middle-class population, customers are looking for more convenient shopping options. As a result, online shopping has become increasingly popular in the country, especially among the younger generation. Customers are also looking for faster delivery options, which is driving retailers to improve their delivery services.

Trends in the market: The retail delivery market in Ethiopia is still in its early stages, but it is growing rapidly. One of the main trends in the market is the increasing number of e-commerce platforms. With the rise in internet penetration and mobile phone usage, more and more retailers are setting up online stores to cater to the growing demand for online shopping. Another trend is the increasing use of technology in the delivery process. Retailers are using mobile apps and other technologies to track deliveries and provide customers with real-time updates.

Local special circumstances: Ethiopia is a unique market with its own set of challenges. One of the main challenges is the lack of infrastructure, which makes it difficult for retailers to deliver products to customers in remote areas. Another challenge is the low level of financial inclusion, which makes it difficult for customers to pay for products online. Retailers are addressing these challenges by partnering with local delivery companies and offering cash on delivery options.

Underlying macroeconomic factors: The growth in the retail delivery market in Ethiopia is also being driven by underlying macroeconomic factors. The country has been experiencing strong economic growth in recent years, which has led to an increase in consumer spending. The government has also been investing heavily in infrastructure, which is improving the overall business environment in the country. Additionally, Ethiopia has a large and growing population, which presents a huge opportunity for retailers looking to expand their customer base.

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.