Ethiopia Online Grocery Market Size, Share, Trends and Forecast by Product Type, Business Model, Platform, Purchase Type, and Region, 2025-2033

Ethiopia Online Grocery Market Overview:

The Ethiopia online grocery market size reached USD 786.20 Million in 2024. The market is projected to reach USD 48,991.41 Million by 2033, exhibiting a growth rate (CAGR) of 58.27% during 2025-2033. The market is driven by rapid digital infrastructure expansion, coupled with telecommunication sector liberalization, which has significantly increased internet penetration across urban and rural areas of Ethiopia. Besides this, the proliferation of mobile money and online payment systems is fueling the Ethiopia online grocery market share.

Ethiopia Online Grocery Market Trends:

Expansion of Digital Payments and Fintech Solutions

The rise of mobile money platforms and fintech innovations in Ethiopia is fueling the market expansion by providing safe and accessible digital payment options. Previously, limited banking penetration hindered e-commerce growth, but mobile-based wallets and electronic payment systems are bridging this gap. People can easily pay for groceries using mobile money or secure online transfers, reducing dependency on cash. This not only improves trust in digital platforms but also streamlines transactions, making shopping more convenient. Online grocery providers are integrating multiple payment options to cater to a wide customer base. Digital payment solutions also facilitate promotions, discounts, and subscription models, encouraging repeated use of online services. As financial inclusion continues to expand, supported by government and private sector initiatives, digital payment systems are becoming a crucial enabler of the market growth. For instance, the National Bank of Ethiopia (NBE) required that all payment service providers implement the digital payment QR Code Standard starting 1 December 2024. The updated QR code standard was anticipated to deliver secure, dependable, and efficient payment options for all parties involved, ranging from major corporations to individual consumers.

Rising Young, Tech-Savvy Population

Ethiopia’s large and youthful population is a significant driver for the growth of the market. Young consumers are more adaptable to technology, more experimental with new platforms, and more inclined towards digital lifestyles compared to older generations. This demographic is comfortable utilizing social media, mobile apps, browsing e-commerce platforms, and trusting digital payment systems, making them natural adopters of online grocery services. According to industry reports, as of January 2024, there were 7.05 Million active users of social media in Ethiopia. Their preferences for speed, convenience, and innovation align perfectly with the value propositions of online grocery platforms. Additionally, young people often influence household purchase decisions, convincing family members to try out digital services. With Ethiopia’s median age being among the youngest globally, this tech-driven generation is driving the demand for online shopping solutions.

Logistics and Delivery Innovations

Advancements in logistics and last-mile delivery solutions are impelling the Ethiopia online grocery market growth. Reliable delivery networks ensure that groceries reach customers quickly and in good condition, directly boosting consumer trust. Companies are investing in efficient supply chain systems, temperature-controlled vehicles, and optimized routing to improve service quality. Many platforms are also partnering with local delivery startups or employing gig workers to strengthen last-mile reach. Flexible delivery options, such as same-day and scheduled delivery, are further enhancing customer satisfaction. As infrastructure is improving in urban and peri-urban areas, delivery services are becoming faster and more affordable. These logistical improvements not only enable scalability but also make online grocery shopping accessible to a wider customer base. The broadening of logistics operations, including retail and e-commerce, is fueling the market expansion. As per the ITA, the retail market in Ethiopia was expected to reach approximately USD 23 Billion in 2024.

Ethiopia Online Grocery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on product type, business model, platform, and purchase type.

Product Type Insights:

• Vegetables and Fruits
• Dairy Products
• Staples and Cooking Essentials
• Snacks
• Meat and Seafood
• Others

The report has provided a detailed breakup and analysis of the market based on the product type. This includes vegetables and fruits, dairy products, staples and cooking essentials, snacks, meat and seafood, and others.

Business Model Insights:

• Pure Marketplace
• Hybrid Marketplace
• Others

A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes pure marketplace, hybrid marketplace, and others.

Platform Insights:

• Web-Based
• App-Based

The report has provided a detailed breakup and analysis of the market based on the platform. This includes web-based and app-based.

Purchase Type Insights:

• One-Time
• Subscription

A detailed breakup and analysis of the market based on the purchase type have also been provided in the report. This includes one-time and subscription.

Regional Insights:

• Addis Ababa
• Oromia Region
• Amhara Region
• SNNPR Region
• Tigray Region
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Addis Ababa, Oromia Region, Amhara Region, SNNPR Region, Tigray Region, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Ethiopia Online Grocery Market Report Coverage:

Key Questions Answered in This Report:

• How has the Ethiopia online grocery market performed so far and how will it perform in the coming years?
• What is the breakup of the Ethiopia online grocery market on the basis of product type?
• What is the breakup of the Ethiopia online grocery market on the basis of business model?
• What is the breakup of the Ethiopia online grocery market on the basis of platform?
• What is the breakup of the Ethiopia online grocery market on the basis of purchase type?
• What is the breakup of the Ethiopia online grocery market on the basis of region?
• What are the various stages in the value chain of the Ethiopia online grocery market?
• What are the key driving factors and challenges in the Ethiopia online grocery market?
• What is the structure of the Ethiopia online grocery market and who are the key players?
• What is the degree of competition in the Ethiopia online grocery market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Ethiopia online grocery market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Ethiopia online grocery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Ethiopia online grocery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.