Retail Delivery - South Africa

  • South Africa
  • The revenue in the Reail Delivery market in South Africa is projected to reach US$0.85bn in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2029) of 11.27%, resulting in a projected market volume of US$1.45bn by 2029.
  • By 2029, the number of users in the Reail Delivery market in South Africa is expected to amount to 6.5m users.
  • The user penetration in 2024 is estimated to be 7.8% and is expected to increase to 10.1% by 2029.
  • The average revenue per user (ARPU) is projected to be US$178.20.
  • In global comparison, United States is anticipated to generate the most revenue in the Reail Delivery market in 2024, reaching US$195,400.00m.
  • The United States has the highest projected user penetration rate of 30.4% in the Reail Delivery market.
  • The rise of e-commerce platforms in South Africa has revolutionized the retail delivery market, offering convenience and a wider range of products to consumers.
 
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Analyst Opinion

The Retail Delivery market in South Africa has been experiencing significant growth in recent years, driven by a number of factors.

Customer preferences:
South African consumers are increasingly turning to online shopping for convenience and to save time. The rise of e-commerce platforms has made it easier for consumers to shop from the comfort of their own homes, and the COVID-19 pandemic has accelerated this trend. Consumers are also becoming more environmentally conscious, and are looking for delivery options that are more sustainable.

Trends in the market:
One of the key trends in the South African Retail Delivery market is the growth of same-day and next-day delivery services. Consumers are willing to pay a premium for faster delivery times, and retailers are investing in logistics infrastructure to meet this demand. Another trend is the rise of alternative delivery options, such as click-and-collect and locker pick-up. These options provide consumers with greater flexibility and control over their deliveries.

Local special circumstances:
South Africa has a unique geography and infrastructure, which presents challenges for retailers and logistics providers. The country has a large rural population, and many areas are difficult to access. This has led to the development of innovative delivery solutions, such as drones and mobile delivery hubs. In addition, South Africa has a high crime rate, which has led to the development of secure delivery options.

Underlying macroeconomic factors:
The South African economy has been struggling in recent years, with high levels of unemployment and low levels of consumer confidence. However, the Retail Delivery market has remained relatively resilient, as consumers continue to prioritize convenience and value for money. The government has also introduced a number of initiatives to support small businesses and e-commerce platforms, which has helped to drive growth in the sector.

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.

Overview

  • Revenue
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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