The demand for grocery delivery services in Southern Asia has been on the rise in recent years, driven by various factors such as changing customer preferences, increasing internet penetration, and local special circumstances.
Customer preferences: Customers in Southern Asia are increasingly turning to online grocery shopping and delivery services due to the convenience and time-saving benefits they offer. With busy lifestyles and traffic congestion in many urban areas, customers are looking for ways to avoid the hassle of physical shopping. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping as customers seek to minimize their exposure to the virus.
Trends in the market: India, one of the largest markets in Southern Asia, has witnessed significant growth in the online grocery delivery market in recent years. The market has become highly competitive, with both established players and new entrants vying for market share. One of the key trends in the Indian market is the emergence of hyperlocal delivery players, which offer faster and more efficient delivery services. Another trend is the increasing focus on private label products by online grocery retailers, which helps to improve profit margins and customer loyalty.In Pakistan, the online grocery delivery market is still in its nascent stage, but it is expected to grow rapidly in the coming years. The market is highly fragmented, with a large number of small players operating in different regions. One of the key trends in the Pakistani market is the increasing adoption of mobile apps for online grocery shopping and delivery. The use of mobile apps offers a more seamless and convenient shopping experience for customers.
Local special circumstances: One of the unique challenges facing the online grocery delivery market in Southern Asia is the lack of reliable and efficient logistics infrastructure. In many areas, the road networks are poor, and the last-mile delivery is often difficult, leading to delays and higher costs. Additionally, many customers in the region still prefer to pay in cash, which creates additional challenges for online retailers.
Underlying macroeconomic factors: The growth of the online grocery delivery market in Southern Asia is also being driven by underlying macroeconomic factors such as increasing internet penetration, rising disposable incomes, and a growing middle class. The region has a large and young population, which is highly tech-savvy and increasingly comfortable with online shopping. Additionally, the region has a large informal economy, which creates opportunities for online retailers to tap into the unorganized retail sector.
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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