Market Insights eCommerce Online Food Delivery Grocery Delivery

Retail Delivery - Iran

Iran

The Reail Delivery market in Iran is expected to witness significant growth in the coming years.
According to projections, the market's revenue is set to reach US$1.64bn by 2024.
This growth is attributed to an anticipated annual growth rate (CAGR 2024-2029) of 26.54%, resulting in a projected market volume of US$5.32bn by 2029.
In terms of user base, the Reail Delivery market is expected to witness a substantial increase, with the number of users reaching 12.4m users by 2029.
This indicates a user penetration rate of 10.8% in 2024, which is projected to rise to 13.4% by 2029.
The average revenue per user (ARPU) in the Reail Delivery market is expected to amount to US$168.00.
When compared to global markets, United States is projected to generate the highest revenue in the Reail Delivery market, with an estimated figure of US$195,400.00m in 2024.
On the other hand, United States is expected to have the highest user penetration rate in the market, with a projected rate of 30.4%.
Iran's retail delivery market is experiencing a surge in online grocery shopping due to the convenience and time-saving benefits it offers to consumers.

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Analyst Opinion

Iran, a country with a population of over 80 million people, has witnessed significant changes in the retail delivery market in recent years.

Customer preferences: Customers in Iran have shown a growing preference for online shopping and home delivery services. This shift can be attributed to the convenience and time-saving benefits that online shopping and home delivery offer. Customers can now easily compare prices and products from different retailers, place orders online, and have their purchases delivered directly to their doorstep. Additionally, the COVID-19 pandemic has accelerated this trend, as more customers are choosing to avoid crowded shopping centers and malls.

Trends in the market: The retail delivery market in Iran has been growing rapidly in recent years, with both local and international players entering the market. The market has become increasingly competitive, with companies offering a wide range of delivery options, including same-day delivery and express delivery. In addition, many retailers have started to offer free delivery services to attract more customers. Another trend in the market is the growing popularity of food delivery services, which have become increasingly common in urban areas.

Local special circumstances: One of the unique features of the Iranian retail delivery market is the dominance of local players. Many of these companies have established a strong presence in the market and have developed a loyal customer base. In addition, the Iranian government has introduced regulations to protect local companies and limit the entry of foreign players. This has made it more difficult for international companies to enter the market and compete with local players.

Underlying macroeconomic factors: The growth of the retail delivery market in Iran can be attributed to several underlying macroeconomic factors. Firstly, the increasing use of smartphones and the internet has made it easier for customers to shop online and place orders for home delivery. Secondly, the young and tech-savvy population in Iran has been a driving force behind the growth of the e-commerce and retail delivery market. Finally, the government's efforts to modernize the economy and promote entrepreneurship have created a favorable environment for the growth of the retail delivery market. In conclusion, the retail delivery market in Iran has been growing rapidly in recent years, driven by changing customer preferences, increasing competition, and favorable macroeconomic factors. The market is expected to continue to grow in the coming years, as more customers embrace online shopping and home delivery services.

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.