The Tanzanian market has been experiencing a steady growth in the retail delivery sector, with a notable increase in online shopping and home delivery services.
Customer preferences: With the increasing use of smartphones and internet penetration in Tanzania, customers are gradually shifting towards online shopping and home delivery services. This trend is mainly driven by the convenience and time-saving benefits of shopping from the comfort of their homes. Additionally, customers are becoming more aware of the competitive pricing and wider product range offered by online retailers.
Trends in the market: The retail delivery market in Tanzania is witnessing a surge in the number of e-commerce platforms and home delivery services. This trend is driven by the increasing demand for online shopping and the need for businesses to adapt to changing customer preferences. Furthermore, the COVID-19 pandemic has accelerated the shift towards e-commerce and home delivery services, as customers have become more cautious about physical shopping.
Local special circumstances: Tanzania's retail delivery market is primarily dominated by local businesses, with a few international players such as Jumia and Kilimall. This is due to the unique challenges faced by businesses in Tanzania, such as limited infrastructure and logistics networks, which can make it difficult for international players to operate efficiently. Additionally, the majority of Tanzanian customers prefer to shop from local businesses, as they offer a more personalized service and a better understanding of local customer preferences.
Underlying macroeconomic factors: Tanzania's economy has been growing steadily over the past decade, with a GDP growth rate of around 6-7%. This growth has been mainly driven by the agriculture, mining, and tourism sectors. Additionally, Tanzania has a relatively young population, with a median age of around 18 years, which presents a significant opportunity for businesses in the retail delivery sector. However, the country still faces challenges such as high levels of poverty, limited access to finance, and inadequate infrastructure, 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.
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