The retail industry in Uganda has been experiencing significant growth in recent years, with the retail delivery market being no exception.
Customer preferences: Customers in Uganda are increasingly embracing the convenience of online shopping, particularly for household items and groceries. This shift in consumer behavior is largely driven by the increasing penetration of mobile phones and internet connectivity in the country. Additionally, the COVID-19 pandemic has accelerated the adoption of online shopping as consumers seek to minimize physical contact and exposure to the virus.
Trends in the market: One of the key trends in the retail delivery market in Uganda is the emergence of e-commerce platforms that specialize in groceries and household items. These platforms offer a wide range of products, competitive prices, and fast delivery, making them popular among consumers. Another trend is the growing popularity of mobile money payments, which has made online shopping more accessible to consumers who may not have access to traditional banking services.
Local special circumstances: Uganda has a relatively young population, with over 70% of its population under the age of 30. This demographic is tech-savvy and embraces new technologies, making them more likely to adopt online shopping. Additionally, the high urbanization rate in Uganda has led to the growth of cities and towns, creating a large market for retail delivery services.
Underlying macroeconomic factors: The Ugandan economy has been growing steadily in recent years, with a projected growth rate of 6.3% in 2021. This growth is largely driven by the services sector, which includes retail and e-commerce. Additionally, the government has implemented policies aimed at promoting entrepreneurship and innovation, which has led to the growth of small and medium-sized enterprises (SMEs) in the retail sector. In conclusion, the retail delivery market in Uganda is poised for continued growth driven by changing consumer preferences, local special circumstances, and underlying macroeconomic factors. E-commerce platforms that specialize in groceries and household items are likely to continue to dominate the market, while mobile money payments will become increasingly popular among consumers. The government's focus on promoting entrepreneurship and innovation is also expected to support the growth of SMEs in the retail sector.
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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