The demand for grocery delivery services in Zambia has been on the rise in recent years.
Customer preferences: Zambian customers are increasingly looking for convenience and time-saving options when it comes to grocery shopping. The growth of the middle class and increasing urbanization has led to a change in consumer behavior, with more people opting for online grocery delivery services. Additionally, the COVID-19 pandemic has accelerated this trend as people seek to minimize their exposure to crowded places.
Trends in the market: The grocery delivery market in Zambia is still in its nascent stage. However, there has been an increase in the number of players in the market, with both local and international companies entering the space. These companies are leveraging technology to provide a seamless customer experience, with features such as mobile apps and online payment options. There has also been a rise in the number of partnerships between grocery stores and delivery companies, allowing customers to access a wider range of products.
Local special circumstances: Zambia's retail sector is dominated by informal markets and small, independent stores. However, there has been a shift towards modern retail formats, with shopping malls and supermarkets becoming more prevalent in urban areas. This presents an opportunity for grocery delivery companies to tap into this growing market. Additionally, the country's poor road infrastructure and high levels of traffic congestion in urban areas make it challenging for customers to travel to physical stores, making grocery delivery services an attractive option.
Underlying macroeconomic factors: Zambia's economy has been under pressure in recent years, with high inflation and a depreciating currency. This has led to a decline in consumer purchasing power, making price a key consideration for customers. Grocery delivery companies that offer competitive pricing and promotions are likely to attract more customers. Additionally, the country's low internet penetration rate and limited access to digital payment options pose a challenge for online grocery delivery companies. However, with the government's efforts to improve internet connectivity and promote digital payments, the market is expected to grow in the coming years.
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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