The demand for grocery delivery services in Tanzania has been on the rise in recent years.
Customer preferences: Customers in Tanzania are increasingly turning to online grocery shopping and delivery services due to the convenience it offers. With busy work schedules and the need to adhere to social distancing measures, customers prefer to have their groceries delivered to their doorstep. Additionally, the availability of a wider variety of products and the ability to compare prices online has also contributed to the growth of the grocery delivery market in Tanzania.
Trends in the market: One of the key trends in the grocery delivery market in Tanzania is the emergence of new players in the market. With the increasing demand for grocery delivery services, more companies are entering the market to tap into this growing opportunity. These companies are leveraging technology to offer faster and more efficient delivery services to customers.Another trend in the market is the shift towards eco-friendly packaging. Customers are becoming more conscious of the impact of packaging on the environment and are opting for companies that use eco-friendly packaging materials.
Local special circumstances: Tanzania has a predominantly cash-based economy, which has presented a challenge for online grocery delivery companies. However, with the increasing adoption of mobile money services, companies are now able to offer cashless payment options to customers.Additionally, the country has a large rural population, which presents a challenge for grocery delivery companies in terms of logistics. However, companies are now leveraging technology to offer last-mile delivery services to customers in remote areas.
Underlying macroeconomic factors: Tanzania has experienced steady economic growth in recent years, which has contributed to the growth of the grocery delivery market. The increasing middle-class population in the country has also played a role in the growth of the market, as these customers are willing to pay for convenience.In conclusion, the grocery delivery market in Tanzania is experiencing growth due to the increasing demand for online grocery shopping and delivery services. Companies are leveraging technology to offer faster and more efficient delivery services to customers. However, the predominantly cash-based economy and large rural population present challenges for companies in the 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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