Retail Delivery - Nigeria

Nigeria

Highlights

The Reail Delivery market in Nigeria is projected to reach a revenue of NGN US$416.30m in 2024.
The market is expected to show a compound annual growth rate (CAGR 2024-2029) of 18.86%, resulting in a projected market volume of NGN US$987.50m by 2029.
In Nigeria's Reail Delivery market, the number of users is expected to amount to 40.6m users by 2029.
The user penetration will be 11.2% in 2024 and is expected to reach 15.8% by 2029.
The average revenue per user (ARPU) is expected to amount to NGN US$16.21.
In global comparison, United States is projected to generate the most revenue in the Reail Delivery market, with an estimated amount of NGN US$195.40bn in 2024.
The United States has the highest projected user penetration rate in the Reail Delivery market, with a rate of 30.4%.
The rise of e-commerce platforms in Nigeria has revolutionized the retail delivery market, providing convenient and efficient services to consumers.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Retail Delivery market in Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian customers have been increasingly turning to online shopping due to the convenience it offers. With the rise of e-commerce platforms, customers can easily access a wide range of products from the comfort of their homes. Additionally, the younger population in Nigeria is tech-savvy and prefers to shop online rather than in physical stores.

Trends in the market: The Retail Delivery market in Nigeria has been growing rapidly due to the increasing demand for online shopping. Delivery companies are expanding their services to meet the needs of customers. Same-day delivery and cash on delivery options have become increasingly popular among Nigerian customers. Additionally, many delivery companies have partnered with e-commerce platforms to offer a seamless shopping experience to customers.

Local special circumstances: Nigeria has a large population, which makes it an attractive market for retailers. However, the country's infrastructure is underdeveloped, which can pose challenges for delivery companies. Poor road networks and inadequate transportation systems can lead to delays in delivery times. Additionally, the lack of a formal addressing system in Nigeria can make it difficult for delivery companies to locate customers.

Underlying macroeconomic factors: Nigeria has a growing middle class, which has increased the demand for consumer goods. Additionally, the country has a high youth population, which is driving the growth of e-commerce in Nigeria. The Nigerian government has also taken steps to improve the business environment, which has attracted foreign investment. However, the country still faces challenges such as corruption and security concerns, which can impact the growth of the Retail Delivery market.

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.