Publication date: April 25, 2024 02:48 (EAT)
Kenya's online food and grocery market surged in 2020 with the onset of the coronavirus disease (COVID-19) pandemic.Reuters/Andrew Boyers/File Photo
E-commerce penetration in Kenya is projected to grow to 53.6 percent by 2025, according to a new report from the Competition Authority of Kenya (CAK).
According to the Online Food and Grocery Delivery Platforms Market Research released on Thursday, the revenue generated from this sector will increase at a rate of 19.15% annually, with a market size of $208.2 million (Ksh 28 billion) by 2027. is expected to reach.
This is in contrast to 2020, when the domestic e-commerce penetration rate, which includes online shopping for food and groceries, was estimated at 40.3 percent.
At the time, it was estimated that 9.3 per cent of Kenyans would purchase food and groceries online in 2023, which is now predicted to rise to 16.7 per cent by 2027, with consumers equates to 10.5 million people.
CAK attributes the rapid growth of online food and grocery shopping in Kenya to the growing need for convenience and skilled delivery services.
“Business and industry regulators, including competition law and policy enforcers, need to be aware of potential competition concerns in these markets, as well as consumer protection issues that may arise with online food and online shopping platforms. “It is a multifaceted grocery market,'' the competition watchdog said.
Kenya's online food and grocery market slowed at the start of the coronavirus disease (COVID-19) pandemic in 2020 as consumers avoided social gatherings as part of restrictions to stop the spread of the coronavirus. , achieved rapid growth.
Other arrangements, such as remote working, have led many middle-class Kenyans to opt for online delivery, resulting in food and grocery retailers including restaurants and supermarkets becoming more connected to delivery platforms, payments and delivery service providers. Encouraged to partner.
CAK further attributes the surge in home and office deliveries to the convenience and security that comes with this model.
Popular players in the local e-commerce and food delivery scene include Jumia, Glovo, Uber Eats, and Yum Deliveries, as well as restaurant and retail chains such as Carrefour, which have uniquely incorporated e-commerce into their shopping experience .
Although there are no clear regulations governing e-commerce in Kenya, there have been some recent legal reforms, including the Data Protection Act 2019 and the Copyright Amendment Act 2019.
However, the CAK report points out important information and regulatory gaps regarding how digital platforms operate along the e-commerce value chain.
