Grocery Delivery - Sri Lanka | Statista Market Forecast

The Grocery Delivery market in Sri Lanka is expected to achieve a revenue of US$298.50m in the year 2024.
This revenue is projected to grow at an annual rate of 11.58% (CAGR 2024-2029), resulting in a market volume of US$516.40m by the year 2029.
Moving on to the Retail Delivery market, it is anticipated to reach a market volume of US$298.50m in 2024.
When compared globally, China is expected to generate the highest revenue, reaching US$266.00bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is estimated to be US$121.60 in 2024.
Furthermore, the number of users in the Grocery Delivery market is projected to reach 3.5m users by the year 2029.
Lastly, the user penetration rate in the Grocery Delivery market is predicted to be 11.2% in 2024.
The demand for online grocery delivery services in Sri Lanka has surged due to the COVID-19 pandemic, leading to the emergence of new players in the market.

Definition:

The Grocery Delivery market consists of food and non-food products that people regularly buy from a grocery store, including food and beverages, pet food, household cleaning products, personal care products, and other household consumables. Grocery delivery can be purchased through several different sales channels such as Omnichannel, Quick Commerce, or directly from the store.

Structure:

Grocery Delivery contains three markets: Retail Delivery, Quick Commerce, and Meal Kit Delivery. Retail Delivery includes delivery of these products directly by supermarkets, brick-and-mortar shops, or grocery stores. The order is placed through an online shop run by the retailer (e.g. Walmart+, Amazon Fresh). Quick Commerce focuses on online delivery services that provide customers with last-mile delivery (Instacart), or operate ghost stores where product selection is limited but delivery time is faster (e.g. Gorillas, Getir, and Glovo). In this case, the platform (e.g. Gorillas) handles the delivery process. This also includes grocery delivery platforms where delivery is advertised under 3 hours, although, most players aim to deliver in minutes. Finally, Meal Kit Delivery encompasses the delivery of a recipe box where fresh ingredients are delivered to be prepared. This service is usually offered as a subscription plan (e.g. HelloFresh).

Additional Information:

Revenue figures refer to Gross Merchandise Value (GMV). User and revenue figures represent B2C services.

Fresh food & Beverages, personal care, or household items ordered online are directly delivered to the consumer, no matter if ordered via a platform (e.g., Instacart) or a retailer website (e.g., Walmart)
Online Grocery orders and delivery are both carried out by a retailer (e.g., Walmart)
Online orders that are picked up in the supermarket (e.g., Instacart) or operating ghost warehouses and delivery logistics (e.g., Flink)
Online orders of recipe boxes where the ingredients are already preportioned (e.g., HelloFresh)

Phone orders
Deliveries of prepared meals for direct consumption (e.g. Meal Delivery)

The demand for online grocery delivery services in Sri Lanka has been on the rise in recent years.

Customer preferences: This trend can be attributed to the changing lifestyles and busy schedules of Sri Lankan consumers, who are increasingly looking for convenient and time-saving ways to shop for groceries. Additionally, the COVID-19 pandemic has further accelerated the shift towards online shopping as consumers are avoiding crowded places.

Trends in the market: One of the key trends in the Sri Lankan grocery delivery market is the emergence of new players offering online grocery delivery services. These companies are leveraging technology to offer a wide range of products at competitive prices. Another trend is the adoption of mobile apps and online platforms by traditional brick-and-mortar retailers to expand their reach and cater to the growing demand for online grocery delivery.

Local special circumstances: Sri Lanka has a relatively small grocery retail market, which is dominated by traditional mom-and-pop stores. However, the market is rapidly evolving, with the entry of modern retail chains and the growth of e-commerce. The country has a young and tech-savvy population, which is driving the adoption of online grocery delivery services. Additionally, the high population density in urban areas and the lack of parking facilities make it difficult for consumers to visit physical stores, further fueling the demand for online grocery delivery.

Underlying macroeconomic factors: Sri Lanka has a rapidly growing economy, with a rising middle class and increasing disposable incomes. This has led to a shift in consumer preferences towards premium and high-quality products, which are often not available at traditional mom-and-pop stores. Additionally, the government's initiatives to promote e-commerce and digital payments are further boosting the growth of the online grocery delivery market in Sri Lanka.

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.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.