Grocery market in Tanzania

The Tanzanian Grocery eCommerce market is predicted to reach US$35.6 million by 2024 and accounts for 7.7% of the total eCommerce market in Tanzania. It is expected to increase over the next years. The expected compound annual growth rate for the next four years (CAGR 2024-2028) will be 26.5%, resulting in a projected market volume of US$91.1 million by 2028. Within the Grocery market ECDB considers the following two sub-markets: Food and Beverages.

Market development

eCommerce revenue development in the Food market in Tanzania

The Tanzanian Food eCommerce market is predicted to reach US$20.5 million by 2024 and accounts for 57.7% of the Grocery eCommerce market in Tanzania. It is expected to increase over the next years. The expected compound annual growth rate for the next four years (CAGR 2024-2028) will be 25.6%, resulting in a projected market volume of US$51.1 million by 2028. The Food eCommerce market is a sub-market of the Grocery market. Further categories within the Grocery market are: Beverages.

eCommerce revenue development in the Food market in Tanzania

in million US$

Note: Market revenue represents B2C sales of physical goods including VAT. It excludes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates.

Source: ECDB analysis

eCommerce revenue growth in the Food market in Tanzania

in %

Note: Market revenue represents B2C sales of physical goods including VAT. It excludes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates.

Source: ECDB analysis

Net eCommerce revenue split by sub-category

in %

Note: Data shown is using current exchange rates.

Source: ECDB analysis

201720182019202020212022202320242025202620272028
Revenue (in mUS$)0.00.00.00.00.00.00.00.0
Growth (in %)99.566.912.990.596.70.718.160.4
as of Grocery (in %)8.78.27.97.98.37.87.67.47.37.16.96.8

Online share

eCommerce online share of the total Food market in Tanzania

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Tanzanian Food retail market, the online share is 0.2% and will increase by an average of 5.1% to 0.3% by 2028.

eCommerce online share of the total Food market in Tanzania

in %

Note: Data shown is using current exchange rates.

Source: Statista Market Insights , ECDB analysis

20202021202220232024202520262027
Online share (in %)84.4%28.9%54.1%17.4%17.4%21.5%53.1%9.4%

Market definition

Definition of the Food market within the Grocery market

Market definition: Grocery > Food The category Food includes the online trade of fresh food (e.g. fruits, vegetables, dairy products), frozen food (e.g. ice creams, frozen pizzas), food cupboard (e.g. noodles, cereals, sweets), and more. Online stores dedicated to the sale of ready-to-eat meal delivery, restaurant pick-up or pet food are not considered. All monetary figures refer to the annual gross revenue and do not factor in shipping costs.

In-scope

  • Fresh food (e.g. fruits, vegetables, dairy products)
  • Frozen food (e.g. ice creams, frozen pizzas)
  • Food cupboard (e.g. noodles, cereals, sweets)
  • Bakery (e.g. bread, cakes, pastries)
  • Meal kits

Out-of-scope

  • Ready-to-eat meal delivery
  • Restaurant pick-up
  • Pet food

Market comparison

The Tanzanian Food market in a global comparison

Market comparison by growth, online share, and revenue in 2023

in %

Source: ECDB analysis

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