The demand for online grocery delivery services has been increasing in South America in recent years.
Customer preferences: Customers in South America are increasingly looking for convenience and time-saving options when it comes to grocery shopping. The rise in e-commerce platforms and the availability of smartphones has made it easier for customers to access online grocery delivery services. Additionally, the COVID-19 pandemic has accelerated the adoption of online shopping in the region, as customers prefer to avoid crowded places and minimize physical contact.
Trends in the market: Brazil and Argentina are the largest markets for grocery delivery services in South America. In Brazil, the market is dominated by local players, such as iFood and Rappi, which have expanded their services to include grocery delivery. In Argentina, international players, such as Mercado Libre and Glovo, are competing with local players for market share. These players are investing heavily in logistics and technology to improve their delivery times and customer experience.
Local special circumstances: One of the challenges for grocery delivery services in South America is the lack of infrastructure in some areas. In countries such as Brazil and Colombia, where the population is spread out across vast areas, it can be difficult and expensive to deliver groceries to remote locations. Additionally, customers in some countries may prefer to shop at traditional markets or small local stores, which can be a barrier to the adoption of online grocery delivery services.
Underlying macroeconomic factors: The growth of the grocery delivery market in South America is also influenced by macroeconomic factors, such as GDP growth and consumer spending. In countries with higher GDP per capita, such as Chile and Uruguay, customers are more likely to have access to smartphones and online payment methods, which makes it easier for them to use online grocery delivery services. Additionally, the COVID-19 pandemic has had an impact on the market, with some customers being more cautious with their spending and opting for cheaper options.
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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