Iceland, a country known for its dramatic landscapes, hot springs, and volcanoes, has a unique retail delivery market that is developing in its own way.
Customer preferences: Icelandic customers are increasingly turning to online shopping and home delivery services due to the convenience factor. The country's harsh weather conditions and remote locations make it challenging for customers to visit physical stores. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping as customers prefer contactless delivery options.
Trends in the market: The retail delivery market in Iceland is dominated by two major players: Aha and Matvælagerðin. These companies offer a wide range of products, including groceries, household items, and electronics. Aha, which is owned by Iceland's largest retailer, has been expanding its services to include same-day delivery and a wider range of products. Matvælagerðin, on the other hand, has been focusing on sustainability by offering eco-friendly packaging and locally sourced products.
Local special circumstances: Iceland's unique geography and climate pose challenges for the retail delivery market. The country's remote locations and harsh weather conditions make it difficult to deliver products to customers in a timely and cost-effective manner. To overcome these challenges, companies have had to invest in specialized vehicles and logistics infrastructure. Additionally, Iceland's small population and limited market size make it challenging for companies to achieve economies of scale.
Underlying macroeconomic factors: Iceland has a relatively small economy that is heavily dependent on tourism and fishing. The COVID-19 pandemic has had a significant impact on both these sectors, leading to a decline in consumer spending. However, the government has implemented measures to support businesses and consumers, which has helped to mitigate the impact of the pandemic. As the country continues to recover from the pandemic, it is expected that the retail delivery market will continue to grow as customers increasingly turn to 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.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)
