Market Insights eCommerce Online Food Delivery Grocery Delivery

Quick Commerce - Eastern Africa

Eastern Africa

The Quick Commerce market in Eastern Africa is projected to reach a revenue of US$38.01m by 2024.
It is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 17.07%, resulting in a market volume of US$83.58m by 2029.
Moreover, the number of users in the Quick Commerce market is projected to reach 6.7m users by 2029.
In terms of user penetration, it is anticipated to be 0.8% in 2024 and is forecasted to increase to 1.3% by 2029.
The average revenue per user (ARPU) is expected to be US$10.62.
When compared globally, China is expected to generate the highest revenue in the Quick Commerce market, amounting to US$80,840.00m in 2024.
Furthermore, China is projected to have the highest user penetration rate in the Quick Commerce market, with a projected rate of 21.4%.
Eastern Africa's quick commerce market is experiencing rapid growth, with a surge in online grocery delivery services in Kenya.

Market

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Analyst Opinion

Quick Commerce, also known as Q-Commerce, is a rapidly growing industry that offers on-demand delivery of goods and services to customers. In Eastern Africa, the Q-Commerce market has been developing at a steady pace in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Eastern Africa are increasingly looking for convenience and efficiency in their shopping experiences. With the rise of urbanization and the growing middle class, there is a higher demand for goods and services that can be delivered quickly and easily. Furthermore, the COVID-19 pandemic has accelerated the shift towards online shopping and home delivery, making Q-Commerce an attractive option for many customers.

Trends in the market: One of the main trends in the Q-Commerce market in Eastern Africa is the emergence of local players. While international companies like Jumia and Glovo have a presence in the region, there are also a growing number of local startups that are offering Q-Commerce services. These companies are often more attuned to the specific needs of customers in the region and are able to offer more tailored solutions.Another trend is the diversification of Q-Commerce services beyond just food delivery. While food delivery is still the most popular service, there is a growing demand for delivery of other goods such as groceries, pharmaceuticals, and electronics. Some Q-Commerce companies are also offering services such as laundry and cleaning, further expanding their reach.

Local special circumstances: Eastern Africa has a number of unique challenges that Q-Commerce companies must navigate. One of these is the lack of formal addresses in many areas, which can make it difficult to accurately deliver goods. Additionally, poor infrastructure and traffic congestion can make it challenging to deliver goods quickly and efficiently.

Underlying macroeconomic factors: The Q-Commerce market in Eastern Africa is also influenced by broader macroeconomic factors. For example, the region has a high rate of mobile phone penetration, which has made it easier for Q-Commerce companies to reach customers and process payments. Additionally, the region has a large and growing youth population, which is more likely to adopt new technologies and services like Q-Commerce.In conclusion, the Q-Commerce market in Eastern Africa is growing steadily as customers seek out more convenient and efficient shopping experiences. Local players are emerging and diversifying their services, while also navigating unique challenges such as poor infrastructure and lack of formal addresses. The underlying macroeconomic factors of high mobile phone penetration and a growing youth population are also contributing to the growth of the market.

Methodology

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.